Canadian tax lawyer and tax expert David Rotfleisch of Rotfleisch & Samulovitch PC recently did a writeup for Canadian-Accountant.com. In his article, David explains the various purposes of a tax clearance certificate and when it may be required.
“A tax clearance certificate ensures that the legal representative does not overlook his or her obligations to file the income tax returns on behalf of the estate. However, a tax clearance certificate application may trigger the CRA to conduct a tax audit of the estate or the corporation’s tax affairs before issuing the tax clearance certificate. In addition, a tax clearance certificate application may shed light on errors and/or omissions in past filings of the deceased or dissolved taxpayer.” — Canadian-Accountant.com, “Tax Clearance Certificates: Canadian Tax Lawyer Guidance”
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."