CRA indicates that a GRE’s taxation year terminates early when it is wound up

CRA noted that s. 249(1)(b) defines the taxation year of a graduated rate estate (GRE) to be the period for which the accounts of the estate are made up for purposes of assessment under the Act and that this paragraph, when combined with s. 249(5), causes the taxation year to cease when the period of accounts ends – which CRA considers to occur when the GRE is wound up or terminated. For non-GREs, s. 249(1)(c) provides that the taxation year is the calendar year. Thus, in CRA's view, winding up any other type of trust will not accelerate its year end.

Neal Armstrong. Summary of 15 June 2022 STEP Roundtable, Q.10 under s. 249(1)(b).