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 responsible representative has to get a clearance certificate from the tax services office before distributing any of the corporation's property under his or her control. By getting the certificate, the responsible representative will avoid being personally liable for the unpaid taxes, interest, and penalties. Include Schedule 100, Balance Sheet Information, with the final return, which shows how the assets were distributed.

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.

Once the corporation is dissolved, any refunds to which the corporation would be entitled revert to the Crown and cannot normally be issued to the corporation or its representatives unless the charter is reinstated.

If the corporation was not involuntarily dissolved and the charter is not reinstated, a refund can be issued if all returns have been filed up to the date of dissolution for all revenue lines (T2, GST, and other levies returns) and the refund is issued to one of the following:

• the sole shareholder of the corporation

• a legal representative of the corporation when there are multiple shareholders

If these conditions are not met, the refund will remain with the Crown.

References
Subsection 159(2)
IC82-6, Clearance Certificate

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