The Finance Department proposed in the 2018 budget new rules for Trusts and Estates which are to be filed in 2021 or later. This means that any executor or trustee who is responsible for handling an estate for someone who dies in 2020 (one year earlier) or has an estate which continues without a certificate of discharge beyond 2020, will be affected by these new rules.

Of particular impact is the imposition of a significant penalty of $25 per day, with a minimum penalty of $100 and a maximum penalty of $2,500 for every occurrence of a T3 return filed either late or without the new (proposed) beneficial ownership reporting documents.

If a failure to file the return was made knowingly, or due to gross negligence, an additional penalty will apply. The additional penalty will be equal to five per cent of the maximum fair market value of property held during the relevant year by the trust, with a minimum penalty of $2,500.

This means that, an executor/trustee who knowingly fails to timely file a trust return, could be personally liable for a minimum penalty of $2,600.

We can help you with handling the Canadian/Quebec tax matters resulting from the estate of a loved one – Please feel free to contact me.