Tax year-end and fiscal period
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Tax year-end and fiscal period
Testamentary trust
For tax years prior to 2016, a testamentary trust may have a non-calendar tax year but will have a deemed tax year-end on December 31, 2015 (unless the trust is an estate that exists at the end of 2015 and is a graduated rate estate (GRE) for its 2016 tax year).
For 2016 and subsequent tax years, a GRE may have a non-calendar tax year (the period for which the accounts of the estate are made up for purposes of assessment). A GRE will have a deemed tax year-end on the day on which the estate ceases to be a GRE, which generally will be no later than the day on which the 36-month period after the death of the individual ends. Subsequent tax year-ends will be on a calendar-year basis.
All remaining trusts are required to use a December 31 tax year.
Inter vivos trust
The tax year end of an inter vivos trust is December 31, except for a mutual fund trust that elects to have a December 15 year-end. A mutual fund trust that previously elected to have a December 15 year-end can revoke the election. For more information, call 1-800-959-8281.
Example 1
On January 31, 2014, Mr. Leblanc died and his estate is a testamentary trust for income tax purposes. His legal representative chooses as the estate's first fiscal period the period that ends January 31, 2015.
Tax year-end and fiscal period rules implications:
The estate will be able to have the same fiscal period until December 31, 2015. On this date, the graduated rate estate definition came into effect and the legal representative must decide whether to designate the estate as Mr. Leblanc’s graduated rate estate, in the estate’s tax return for its first tax year that ends after 2015. Assuming the estate is so designated, because Mr. Leblanc died on January 31, 2014, the estate may qualify as a graduated rate estate until January 31, 2017 and maintain its original fiscal period until that date, provided that it remains a graduated rate estate. Beginning February 1, 2017, the estate will cease to be a graduated rate estate. A new tax year will begin on February 1, 2017 and end on December 31, 2017. Subsequent tax year-ends will be on a calendar-year basis.
A Trust Income Tax and Information return will be filed for the period February 1, 2016 to January 31, 2017, and a second one for the period February 1, 2017 to December 31, 2017.
Example 2
On April 3, 2012, Mr. Smith died and an estate arose, which is a testamentary trust for income tax purposes. His legal representative chose as the estate’s first fiscal period the period that ended on April 3, 2013.
Tax year-end and fiscal period rules implications:
The estate will have the same fiscal period until December 31, 2015. However, since Mr. Smith died on April 3, 2012, and the 36 month period after death ends before December 31, 2015 (i.e., April 3, 2015), the trust will not qualify as a graduated rate estate. The trust will have a deemed tax year-end on December 31, 2015 (for the period April 4 to December 31, 2015). Subsequent tax year-ends will be on a calendar-year basis.
A Trust Income Tax and Information return will be filed for the period April 4, 2014 to April 3, 2015, and a second one for the period February 4, 2015 to December 31, 2015.
Where do I send this request?
Fiscal period change for trust’s wind-up (discontinuation):
For a graduated rate estate, you have to file the final T3 return and pay any balance owing no later than 90 days after the trust's wind-up (discontinuation) date. Enter the wind-up date on page 1 of the return.
If you wind up a graduated rate estate, the tax year will end on the date of the final distribution of the assets.
If you wind up an inter vivos trust or a testamentary trust, you have to file the final T3 return and pay any balance owing no later than 90 days after the trust’s tax year-end. However, you may want to file the final return before the trust’s tax year-end.
In either case, you should get a clearance certificate before you distribute the trust property. For more information, see "Clearance certificate", in Guide T4013, T3 Trust Guide.
If the trustee address is based in British Columbia, Nova Scotia, Laval Quebec, or Sherbrooke Quebec, send the request to:
Sudbury Tax Centre
Canada Revenue Agency
1050 Notre Dame Avenue
Sudbury ON P3A 5C2
If the trustee address is based in Manitoba, Alberta, Newfoundland and Labrador, Prince Edward Island,
New Brunswick, Yukon, Northwest Territories and Montreal Quebec, send the request to:
Winnipeg Tax Centre
Canada Revenue Agency
Post Office Box 14001, Station Main
Winnipeg MB R3C 3M3
If the trustee address is based in Nunavut, Saskatchewan, Ontario and the remainder of the Province of Quebec not listed above, send the request to:
Ottawa Technology Centre
Canada Revenue Agency
875 Heron Road
Ottawa ON K1A 1A2
Fiscal period change for trust other than for a wind-up:
Request for changes to fiscal year-end other than for a wind-up, should be made in writing and sent to the Taxpayer Services Regional Correspondence Centre applicable to your province of residence.
Select the appropriate location from the table below:
Newfoundland and Labrador, New Brunswick, Nova Scotia, and Prince Edward Island
Taxpayer Services Regional Correspondence Centre
1557 Hollis Street
P.O. Box 638
Halifax NS B3J 2T5
Fax: 902-426-4888
Quebec
Taxpayer Services Regional Correspondence Centre
305 René-Lévesque Blvd. West
Montréal QC H2Z 1A6
Fax: 514-496-5345
Ontario and Nunavut
Taxpayer Services Regional Correspondence Centre
451 Talbot Street
London ON N6A 5E5
Fax: 519-645-4029
Manitoba, Saskatchewan, Alberta, and Northwest Territories
Taxpayer Services Regional Correspondence Centre
340 3rd Avenue North
Saskatoon SK S7K 0A8
Fax: 306-652-3211
British Columbia and Yukon
Taxpayer Services Regional Correspondence Centre
9737 King George Boulevard
P.O. Box 9070, Station Main
Surrey BC V3T 5W6
Fax: 604-587-2010
- Date modified:
- 2017-03-03