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Process for Assessing & Collecting Ontario Estate Administration Tax

Ontario Estate Administration Tax

In the 2011 Ontario budget, the Ontario government indicated that they would tighten the probate filing rules to enhance compliance by transferring administration of the Estate Administration Tax from the Ministry of the Attorney General to the Ministry of Revenue and Finance. This change received royal assent in 2011 and was announced in force January 1st, 2015. Effective January 1st, 2015, the Ministry of Finance now has a more defined process for assessing and collecting the Estate Administration Tax (EAT).

The EAT must be paid to the Ministry of Finance when the Estate Trustee applies for the Certificate of Appointment of Estate Trustee with (or without) a Will. The Estate Trustee has 90 days from receiving the Certificate of Appointment of Estate Trustee to file an Estate Information Return (EIR). In the Estate Information Return, the Estate Trustee must provide details of how the valuation of the estate was determined.

If additional EAT is owed after delivering the initial EIR, an amended information return detailing the specifics must be received by the Ministry of Finance within 30 calendar days after the deposit or payment of the EAT.

If a full or partial refund of the EAT deposit is received after submitting the EIR to the Ministry of Finance, the Estate Trustee must submit an amended EIR outlining the details of the refund within 30 day of receiving the refund. The Superior Court of Justice in Ontario where the deposit of EAT was paid will issue this refund.

The EIR will supposedly provide more transparency and accountability and provide the Ministry of Finance with more details for assessment purposes. It is advisable to keep the estate records for a minimum of four years from when the Certificate of Appointment is issued.

Within four years of receiving the Certificate of Appointment, the Estate Trustee discovers that the Estate Information Return is incomplete, or incorrect, they must amend the EIR with 30 days of becoming aware of the incomplete or inaccurate information.

If, after 4 years of receiving the Certificate of Appointment, the Estate Trustee becomes aware of incomplete or inaccurate information in the EIR, the Estate Trustee is not obligated to amend the EIR.

Despite the four year time limit, the Ministry of Finance can, at any time, assess or reassess an estate where they determine that an Estate Trustee has:

1. Failed to file an Estate Information Return
2. The Estate Trustee made a misrepresentation of the value of the estate through neglect, carelessness or willful default, or committed fraud in supplying or omitting information regarding the estate.

An Estate Trustee who fails to file an EIR as per the $1,000.00 threshold or make false or misleading statements on the EIR may be liable for: a fine of at least $1,000.00 and up to twice the EAT payable by the estate and imprisonment up to two years or both.

If you are in the process of filing an EIR and need assistance please call me. You can connect with me via email or telephone, leave a comment here on the site or click the contact tab at the bottom of the screen if you are reading this post on the website. Don’t forget to join in the conversation on Facebook and Twitter too!

Until next time


Katherine Downey is the #1 Funeral Preplanning Professional in Canada for the fourth time. She is a professional educator, author, radio host, licensed funeral director and insurance advisor. To set an appointment or have your questions answered, please contact Kat directly.

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