Line 078 - Is this the final return up to dissolution?
Line 078 - Is this the final return up to dissolution?
You have to answer yes if you have already permanently dissolved your corporation with the incorporating authority and you are filing your final return for a tax year ending on the date of dissolution. You will find the date of dissolution on the articles of dissolution.
The legal representative has to get a clearance certificate from the tax services office to avoid being personally liable for the unpaid taxes, interest, and penalties. To get a clearance certificate, you have to provide:
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a copy of the director's or shareholder's resolution confirming the intention to dissolve the corporation and the date of dissolution
-
a copy of the notice of assessment for the final T2 return filed (it should include Schedule 100, Balance Sheet Information, which shows how the assets were distributed)
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a statement of distribution of the company assets to date as well as the scheme of the distribution of company assets at the date of wind-up
Only after you receive the clearance certificate can you begin distributing the corporation's property. You have to complete, as soon as possible, the actual transfer or distribution of any property over which you have control.
Note
If you want to dissolve your corporation, you should
send an application for dissolution to the government
body that governs the affairs of your corporation.
Once the corporation has been dissolved, you should consult Form RC145, Request to Close Business Number Program Accounts, to determine whether you need to complete that form and send the CRA the articles of dissolution. Otherwise, the CRA considers that the corporation still exists, and it will have to file a return even if there is no tax payable.
For more information, see Form TX19, Asking for a Clearance Certificate, and go to canada.ca/clearance-certificate.
References
Subsection 159(2)
Information Circular IC82-6, Clearance Certificate
