Filing deadlines

Written on January 10, 2013 – 7:00 am | by Derek de Gannes

Just about everything tax-related comes with a deadline. Miss the deadline and more often than not there will be a penalty and perhaps some interest. The remainder of the blog will address the filing deadline of a trust which is wound up and its remaining assets distributed to the beneficiary.

Generally speaking, a return of income for a trust or estate must be filed within 90 days from the end of the tax year. The tax year of an individual, which includes a trust, is defined as being a calendar year.

Our tax law supports a conclusion that the tax year of a testamentary trust (as a result of a person’s death) ends on the date of final distribution of its assets. Oddly enough, our tax law does not support a similar conclusion in respect of an inter vivos trust (created during one’s lifetime). The Canada Revenue Agency has taken the view that the filing deadline for an inter vivos trust in the year of wind up is 90 days from the end of the calendar year.

Be sure to consult a a pro when it comes to trust filing deadlines in those years when matters are winding up.

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