The purpose of a clearance certificate

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https://www.canada.ca/en/revenue-agency/services/tax/individuals/life-events/what-when-someone-died/clearance-certificate.html

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The purpose of a clearance certificate

From: Canada Revenue Agency


COVID-19: Important updates

During the COVID-19 pandemic, the CRA is continuing to review TX19 and GST352 clearance certificate requests. However, processing times may be longer than usual and there may be delays in accessing any documents sent by mail. If you or your representative submitted a request by mail between March 12, 2020 and November 30, 2020, and you have not received any communication from the CRA, it is recommended that you resubmit the request electronically through My Account, Represent a Client, My Business Account, or resubmit the request by mail or fax.

Step 1. The purpose of a clearance certificate

A clearance certificate does the following:

  • confirms that an estate of a deceased person or a corporation has paid all amounts of tax, interest and penalties it owed at the time the certificate was issued
  • lets the legal representative distribute assets without the risk of being personally responsible for amounts the deceased, estate, trust or corporation might owe the CRA
  • The Canada Revenue Agency (CRA) gives a clearance certificate to the legal representative of:
    • someone who has died
    • a trust or corporation that has wound up or dissolved


Note


When the CRA issues a clearance certificate, it assumes that the information provided by the applicant is accurate and up-to-date. It does not mean that the deceased, estate, trust or corporation owes no further money to the CRA if more information comes to light later.


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Date modified:
2021-07-05