Asking for a clearance certificate

A clearance certificate certifies that all amounts for which a deceased taxpayer is liable to Canada Revenue Agency for have been paid.  If a clearance certificate is not obtained upon a taxpayer’s death, as the legal representative, you can be liable for any amount the deceased owes.  A clearance certificate covers all tax years to the date of the taxpayer’s death.

The certificate applies to amounts including all income taxes, along with any interest and penalties as well as the repayment of any outstanding Canada Pension Plan contributions and Employment Insurance premiums, including any associated interest and penalties.

You cannot ask for a clearance certificate until all the returns have been filed and the notices of assessment received.

To request a certificate, complete Form TX19, Asking for a Clearance Certificate, and send it to the Assistant Director, Audit, at your tax services office. Send the form only after you have received the notices of assessment for all the returns filed and paid or secured all amounts owing.

Applying for a trust account number

Trustees can apply for a trust account number before filing their T3RET, T3 Trust Income Tax and Information Return. Trust account numbers start with the letter “T” and are followed by an eight-digit number.

You can use Form T3 APP, Application for Trust Account Number to apply for a trust account number.

You must also send a signed copy of the trust document or will or your application will not be processed.

Once the Canada Revenue Agency (CRA) has assigned a trust account number to the trust, this number should be included on all correspondence related to the trust.

If you want to apply for a trust account number for someone, or you want to authorize a person to apply for you, CRA requires completed and signed Form T1013, Authorizing or Cancelling a Representative. This form allows CRA to deal with a person who is acting as a representative for another person on income tax matters (including trust accounts).

If you would like more information or have any questions, feel free to contact us at 780.466.6204, or click here to send us an email.

Thanks to Shannon Warawa of KWB Chartered Accountants for providing this content.