Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Whether a corporate return, normally the responsibility of one individual as both sole shareholder and officer of the company, is required to be filed by the legal representative upon the death of that individual.
Position: Yes
Reasons: As the legal representative of the individual, acting in trust for the beneficiaries of the estate, all responsibilities normally taken on by the individual devolve on the that representative.
2006-020121
XXXXXXXXXX Jack Szeszycki
(613) 957-9232
March 22, 2007
Dear XXXXXXXXXX:
Re: Deceased Sole Shareholder
We are responding to your letter of August 17, 2006, in which you requested clarification as to where the responsibility falls for filing income tax returns when an individual who is the sole shareholder and officer of a corporation becomes deceased in the year. We regret the delay encountered in providing our response.
It is our understanding that any property of a person that is vested in that person will, when that person dies, unless there is a right of survivorship on the property, vest in his or her personal representative in trust for those people beneficially entitled to that property. This would include an interest in a business or share in a corporation. It is our view that the obligations that resided with the individual stemming from ownership of the company would devolve to his or her legal representative. This would include the responsibility and accountability for ensuring that both the corporation tax return and the final individual return of the deceased are filed as and when required.
We hope our comments will be of assistance to you.
Yours truly,
Randy Hewlett
For Director
Business and General Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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