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: 1) Assuming the non-resident beneficiary’s capital interest in this estate or trust constitutes taxable Canadian property, whether the beneficiary can file one single request for a compliance certificate under section 116 (Form T2062) with the CRA based on the estimated total value of the multiple capital distributions that will be distributed to the non-resident beneficiary over multiple years. 2) If the CRA issues a certificate of compliance (Form T2064) pursuant to such request, whether the estate/trust will be absolved from liability under subsection 116(5) for distributions over the multiple years provided the total value of the total capital distributions do not exceed the certificate limit.
Position: 1) Yes. 2) Yes.
Reasons: See response below.
2025 STEP CRA Roundtable – June 17, 2025
QUESTION 6. Section 116 Partial Distributions from an Estate Covering Multiple Taxation Years
During the administration of an estate or trust, the executor/trustee makes several capital distributions to a non-resident beneficiary spanning multiple years. In some cases, it may be possible to estimate the total value of these distributions in advance, but not the timing of such distributions. The non-resident beneficiary’s capital interest in this estate or trust constitutes taxable Canadian property (“TCP”) as that term is defined in subsection 248(1) of the Income Tax Act (the “Act”). Can the beneficiary file one Form T2062 under subsection 116(1) with the CRA before the above-mentioned distributions based on the estimated value of the total capital distributions that will be distributed to the non-resident beneficiary over multiple years? If the CRA issues a certificate of compliance (Form T2064) pursuant to such request, will the estate/trust be absolved from liability under subsection 116(5) for distributions over the multiple years provided the value of the total capital distributions do not exceed the certificate limit?
CRA Response
Yes, a single Form T2062, Request by a Non-Resident of Canada for a Certificate of Compliance Related to the Disposition of Taxable Canadian Property can be filed in advance of single or multiple capital distributions.
When the CRA has verified the information provided in such notice, and when the CRA has received either an amount to cover the tax on any gain realized by the non-resident beneficiary (the “vendor”) upon the disposition of the capital interest in the trust upon the distribution of the property, or appropriate security for such tax, the CRA will issue a certificate of compliance, Form T2064, Certificate – Proposed Disposition of Property by a Non?Resident of Canada, under subsection 116(2) establishing a ‘certificate limit’.
Any and all capital distributions up to the certificate limit would be covered under a single certificate of compliance. Form T2064 does not indicate a ‘disposition date’.
On the actual disposition of the property, if the facts and amounts of the actual disposition differ from those you reported to the CRA for the proposed disposition, another completed form (Form T2062) with the changes and providing the CRA with acceptable security or any additional payment to cover the increase in tax payable should be filed. The CRA will then issue you a certificate of compliance, Form T2068, Certificate - The Disposition of Property by a Non-Resident of Canada.
Vicky Liu
2025-105857
Response prepared in collaboration with:
Non-Resident Dispositions and International Waivers Section
Small and Medium Enterprises Directorate
Compliance Programs Branch
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