Apply for a clearance certificate

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https://www.canada.ca/en/revenue-agency/services/tax/individuals/life-events/doing-taxes-someone-died/clearance-certifcate.html

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Apply for a clearance certificate

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Why you need a clearance certificate

Having a clearance certificate confirms that an estate of a person who died, trust, or corporation has paid all amounts of income tax and GST/HST, interest, and penalties it owed at the time the certificate was issued, or that the Minister of National Revenue has accepted security for the payment.

A clearance certificate will allow you, as the legal representative, to distribute assets without the risk of being personally responsible for unpaid amounts the person who died, estate, trust, or corporation might owe to the CRA. Your financial institution or lawyers may also ask you for a clearance certificate.

Once the legal representative has a clearance certificate, the liability for unpaid tax under the Income Tax Act or Part IX of the Excise Tax Act then rests on the estate, trust, corporation, beneficiaries, or other people who have received the distributed assets.

Depending on your situation, determine if you should apply for a clearance certificate:

For an estate of someone who died

You will need a clearance certificate if:

  • you need to distribute assets of a deceased individual’s estate
  • the person had a goods and services tax/harmonized sales tax (GST/HST) number

Generally, you will not be able to get a clearance certificate when the estate of the person who died does not have sufficient assets to pay all of the tax, interest, and penalties due to the CRA.

For corporations

You will need a clearance certificate if:

  • the corporation is winding up or for any other type of corporate dissolution and you are planning to distribute corporate property

If the corporation will continue to operate, instead of a clearance certificate, you may only require a comfort letter.

For a trust

You will need a clearance certificate if the property of the estate of someone who died or the trust will be distributed.

For GST/HST

You will need a clearance certificate if an individual, trust or business with a GST number has assets to distribute or is choosing to close.

Distributing assets without a clearance certificate

If the legal representative does not get a clearance certificate before they distribute assets and there are any tax amounts owing under the Income Tax Act or Part IX of the Excise Tax Act to the CRA, they are personally liable for unpaid amounts, up to the value of the amount of assets distributed.

When to apply for a clearance certificate

Do not submit your clearance certificate request at the same time as you file any necessary returns. This will result in a delay in assessing those returns.

A clearance certificate should be requested after:

  • all of the necessary returns have been filed
  • you have received the notices of assessment for the returns
  • any outstanding balances owing to the CRA have been paid or secured and there are no other outstanding adjustment requests, objections, taxpayer relief or appeals requests

Prepare your request

Forms and supporting documents you need

For an estate of someone who has died

You will need to complete Form TX19, Asking for a Clearance Certificate.

If the person who died also had a GST/HST number, you will also need to complete Form GST352, Application for Clearance Certificate.

Supporting documents

Send us the following supporting documents, unless you have already submitted them:

  • A complete and signed copy of the taxpayer's will, including any codicils, renunciations, disclaimers, and all probate documents if applicable
    • If the taxpayer died intestate (without a will), attach a copy of the document appointing an administrator (for example, the letters of administration or letters of verification issued by a provincial court)
  • Any other documents that are necessary to prove that you are the legal representative
  • A detailed list and description of the assets that were owned by the deceased at the date of death, including all assets that were held jointly and all registered retirement savings plans and registered retirement income funds (including those with a named or designated beneficiary), their adjusted cost base (ACB) and fair market value (FMV) at the date of distribution by the estate
  • A detailed statement of distribution of the assets of the deceased's estate to date
  • A statement of proposed distribution of any holdback or residual amount or property
  • The names, addresses, and tax identification numbers, such as social insurance numbers, of any beneficiaries of property other than cash

If you want us to communicate with any other person or firm (such as an accountant, notary, or lawyer) or if you want the clearance certificate sent to any address other than your own, you must authorize a representative:

For corporations

You will need to complete Form TX19, Asking for a Clearance Certificate.

If the business has a GST/HST account, you will also need to complete Form GST352, Application for Clearance Certificate.

Supporting documents

Send us the following supporting documents, unless you have already submitted them:

  • A copy of the director’s or shareholder’s resolution confirming the intention to dissolve the corporation and the date of dissolution
  • A copy of the notice of assessment for the final T2 corporate return filed
  • Any other documents that are necessary to prove that you are the legal representative
  • A statement of distribution of the company assets to date as well as the proposed plan for the distribution of company assets at the date of wind-up

If you want us to communicate with any other person or firm (such as an accountant, notary, or lawyer) or if you want the clearance certificate sent to any address other than your own, you must authorize a representative:

For trusts

You will need to complete Form TX19, Asking for a Clearance Certificate.

If the trust had a GST/HST number, you will also need to complete Form GST352, Application for Clearance Certificate.

Supporting documents

Send us the following supporting documents, unless you have already submitted them:

  • A copy of the complete trust agreement and any amendments or documents for the trusts
  • For a testamentary trust, a complete and signed copy of the taxpayer's will, including any codicils, renunciations, disclaimers, and all probate documents if applicable
    • If the taxpayer died intestate (without a will), attach a copy of the document appointing an administrator (for example, the letters of administration or letters of verification issued by a provincial court)
  • Any other documents that are necessary to prove that you are the legal representative
  • For a testamentary trust, a detailed list and description of assets that were owned by the person who died at the date of death, including all assets that were held jointly and all registered retirement savings plans and registered retirement income funds (including those with a named or designated beneficiary), their adjusted cost base (ACB) and fair market value (FMV) at the date of distribution by the trust
  • For trusts other than testamentary trusts, a list of all assets transferred to the trust, including a description, as well as their ACB and FMV at the date of distribution
  • A detailed statement of distribution of the assets of the trust to date
  • A statement of proposed distribution of any holdback or residual amount or property
  • The names, addresses, and tax identification numbers of any beneficiaries of property other than cash

If you want us to communicate with any other person or firm (such as an accountant, notary, or lawyer) or if you want the clearance certificate sent to any address other than your own, you must authorize a representative:

For GST/HST

You will need to complete Form GST352, Application for Clearance Certificate

Send in your request

You can submit the completed request by mail or fax, or online, using Represent a Client, My Account, or My Business Account.

If you are submitting supporting documents in response to a request for additional information, please include a cover page with the following information to ensure the documents are directed to the appropriate area:

  • The name of the clearance certificate dispositions officer or person who requested the information
  • The tax services office where that person is located
Online:
Represent A Client

Submit the completed Form TX19 Asking for a Clearance Certificate or Form GST352, Application for Clearance Certificate and any supporting information through the “Submit documents” service in your Represent a Client account.

Representatives do not need to have electronic authorization access to the specific client’s account to submit clearance certificate requests via Represent a Client.

When using the Submit documents service:

  • select ‘Representative related’
  • answer ‘No’ to the question, ‘Do you have a case or reference number?’

For help with income tax clearance certificates, call 1-800-959-8281.

For help with goods and services tax/harmonized sales tax (GST/HST) or T2 clearance certificates, call 1-800-959-5525.

My Account

Submit the completed Form TX19 Asking for a Clearance Certificate or Form GST352, Application for Clearance Certificate and supporting information through the “Submit documents” service in My Account.

When using the Submit documents service:

  • answer ‘No’ to the question, ‘Do you have a case or reference number?’
  • select ‘Other’ as the topic

As the legal representative (that is, executor), you may login using your My Account access, to submit clearance certificate requests that you are the legal representative for.

For help with income tax clearance certificates, call 1-800-959-8281.

For help with goods and services tax/harmonized sales tax (GST/HST) or T2 clearance certificates, call 1-800-959-5525.

My Business Account

Submit the completed Form TX19 Asking for a Clearance Certificate or Form GST352, Application for Clearance Certificate and any supporting information through the “Submit documents” service in My Business Account.

When using the Submit documents service, representatives should select ‘No case or reference number’.

For help with income tax clearance certificates, call 1-800-959-8281.

For help with goods and services tax/harmonized sales tax (GST/HST) or T2 clearance certificates, call 1-800-959-5525.

By mail or fax
Submit by mail or fax

Mail or fax your completed form and documents to the regional tax services office for your region:

Nova Scotia, New Brunswick, Prince Edward Island, or Newfoundland and Labrador

Mail

Nova Scotia Tax Services Office
Estates and Trusts Audit
47 Dorchester St
Sydney NS B1P 6K3

Fax

  • Canada and United States: 1-833-712-2304
  • Outside Canada and United States: 418-556-1852

Quebec

Mail

Western Quebec Tax Services Office
Audit – Clearance Certificates
110-151 du Lac Ave
Rouyn-Noranda QC J9X 0G7

Fax

  • Canada and United States: 1-833-712-2302
  • Outside Canada and United States: 418-556-1853

Ontario and Nunavut

Mail

GTA East Tax Services Office
Audit – Clearance Certificates
1050 Notre Dame Ave
Sudbury ON P3A 5C1

Fax

  • Canada and United States: 1-833-712-2303
  • Outside Canada and United States: 418-556-1853

British Columbia and the Yukon

Mail

Coastal and Central British Columbia Tax Services Office
Estates and Trusts Audit
9755 King George Blvd
Surrey BC V3T 5E1

Fax

  • Canada and United States: 1-833-712-2308
  • Outside Canada and United States: 418-556-1852

Manitoba, Saskatchewan, and Alberta, and Northwest Territories

Mail

Eastern Prairie Tax Services Office
Audit – Clearance Certificates
Post Office Box 1022
Winnipeg MB R3C 2W2

Fax

  • Canada and United States: 1-833-712-2305
  • Outside Canada and United States: 418-556-1852

Processing times

We will send the legal representative an acknowledgement letter within 45 days of receiving the request for a clearance certificate.

Our assessment can take up to 120 days, assuming all of the necessary documents were provided. However, in certain situations, the CRA may need to do an audit before it issues the clearance certificate.

If your request is denied, you will be advised what information is missing, or what actions are required to be completed. You will be able to reapply for a clearance certificate once you have addressed these issues.

If you have not received your certificate, have been denied a certificate or a clearance certificate officer has not contacted you within 120 days, contact us

Contact us at the number for the type of clearance certificate you are applying for:

  • For individual (T1) or trust (T3) accounts call 1-800-959-8281
  • For corporations (T2) or GST/HST accounts call 1-800-959-5525

After you receive a clearance certificate

When issuing a clearance certificate, the CRA reviews all known information available to verify all balances owing have been paid or secured.

Once the legal representative has received a clearance certificate, they are then able to distribute assets without the risk of being personally liable for unpaid amounts the person who died, estate, trust, or corporation might owe to the CRA under the Income Tax Act or Part IX of the Excise Tax Act. The liability then rests on the estate, trust, corporation, beneficiaries, or other people who have received the distributed assets.

If new assets or property are discovered after a clearance certificate is issued

After you receive a clearance certificate, you may discover new assets or another property that affects the amounts of income or capital gains you reported on the tax return(s) of the person who died.

If this happens, the legal representative will have to get another clearance certificate before they distribute the newly identified property. Contact the regional tax services office where you filed your clearance certificate request for more information.

Resource

Information circular, IC82-6R13 Clearance Certificate


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Date modified:
2023-05-25