The Canada Revenue Agency (CRA) was recently asked to provide an update regarding the new online application process for a trust account number.
In my capacity as an advisor, I ask clients to make tax payments if an only if there is an account number assigned to the taxpayer responsible for the payment. While individuals and corporations are assigned tax identifications numbers, trusts are not.
Since February 2021, the CRA provided in their response that trustees (which includes an executor, an administrator or a liquidator who owns or controls property for another person) and their representatives have been able to immediately obtain a trust account number using the online registration service through CRA My Account, My Business Account, and Represent a Client.
In order to apply for a trust account number using the online portals, trustees will need to know the trust type and have a signed copy of the trust document or the last will and testament.
Online registration is not available to a non-resident trust electing to file certain income tax returns.
Chasing down payments in a huge system is no fun and may lead to much frustration. Getting the trust identification has become a bit easier.
Thanks for reading.