After you file ▲
After you file ▲
Processing times
We can usually assess a T3 return, that was filed by paper, within 17 weeks.
Reassessments
If you need to change a T3 return after you send it to us, do not file another return for that tax year. Send us a completed Form T3-ADJ, T3 Adjustment Request, or a letter providing the details of the change. Indicate the trust's account number, the tax year you want us to change, and send us any supporting documents.
You can submit Form T3-ADJ, T3 Adjustment Request, online in My Account at canada.ca/my-cra-account by using the "Submit documents" service. Your authorized representative can access this online service through Represent a Client at canada.ca/taxes-representatives.
We can reassess your T3 return, make additional assessments, or assess tax, interest, or penalties within one of the following:
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three years (four years for mutual fund trusts) from the date of your original notice of assessment or a notice that no tax was payable for the tax year (this period is called the "normal reassessment period")
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six years (seven years for mutual fund trusts) from the date of your original notice of assessment to allow or change a carry-back of certain deductions, such as a loss or an unused investment tax credit
Your request should be postmarked before the end of the above periods for us to consider reassessing your return.
The taxpayer relief provisions permit the CRA to issue income tax refunds or reduce income tax payable for individuals and graduated rate estate beyond the normal three-year period. The CRA's discretion to grant relief is limited to any period that ended within 10 years before the calendar year in which a request is submitted or an income tax return is filed.
Testamentary trusts can still benefit from these provisions for tax years that ended on or before December 31, 2015. We usually base our initial assessment on the income you report. Later, we may select the return for a more in-depth review or audit. We can also reassess a return at any time if:
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You have made a misrepresentation because of neglect, carelessness, wilful default, or fraud in either filing the return or supplying information required by the Act
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You file Form T2029, Waiver in respect of the normal reassessment period or extended reassessment period, with your tax services office before the normal reassessment period expires. If you want to revoke a waiver you previously filed, file Form T652, Notice of Revocation of Waiver. The revocation will take effect six months after you file Form T652
If requested by T3 Trusts Audit, you can submit the documentation online.
Tax Administration Rules
For 2016 and subsequent tax years, the following administration rules, only available to GRE, extend the period:
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during which the CRA may refund an overpayment of tax
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during which, at the trust's request, the CRA may reassess or make determinations in respect of certain income tax liabilities
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for objecting to a tax assessment
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for filing an agreement to transfer forgiven amounts under the debt forgiveness rules
How to register a formal dispute
If you disagree with your assessment or reassessment, you can make a formal objection.
Filing an objection is the first step in the formal process of resolving a dispute. The time limit for filing an objection is as follows:
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If you are an individual (other than a trust), or filing for a graduated rate estate, the time limit for filing an objection is either one year after the due date for the return or 90 days after the date of the notice of assessment or notice of reassessment, whichever is later. If you did not file your objection on time, you can apply for a time extension within one year of your original time limit to file an objection. You can apply by writing to the Chief of Appeals at your Appeals Intake Centre or by using My Account at canada.ca/my-cra-account if you are an individual, or My Business Account at canada.ca/my-cra-business-account if you are a business owner. Include the reasons why you were prevented from filing on time
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In every other case, including the assessment of taxes in respect of over-contributions to an RRSP or a TFSA, you have to file an objection within 90 days after the date of the notice of assessment or notice of reassessment
You or your representative can choose to file your objection by using one of these options:
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making an online submission in "Represent a Client" at canada.ca/taxes-representatives
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sending a completed Form T400A, Notice of Objection - Income Tax Act, or a signed letter to the chief of appeals at your appeals intake centre
For more information about objections and appeals to your income tax assessment or reassessment, go to canada.ca/cra-complaints-disputes.
Elections
The taxpayer relief provisions permit the CRA to accept certain late, amended, or revoked income tax elections. This applies to both of the following elections that we discuss in this guide:
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subsection 164(6) election by an estate (see page 40)
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preferred beneficiary election (see page 55)
A late, amended, or revoked election is subject to a penalty of $100 for each complete month from the due date of the election to the date of the request. The maximum penalty is $8,000.
For more information about the taxpayer relief provisions, go to canada.ca/taxpayer-relief.
What records do you have to keep?
You have to keep your books, records, and supporting documents in case we need to verify the income or loss you reported on the return. Generally, you must keep them for at least six years from the tax-year-end to which they relate. However, you can request permission to dispose of them before the end of this period.
For more information, go to canada.ca/taxes-records or see Information Circular IC78-10R5, Books and Records Retention/Destruction.
Clearance certificate
You can distribute property without a clearance certificate, as long as you keep sufficient property in the trust to pay any debts owing to the CRA. However, by getting a clearance certificate, you will avoid being personally liable for unpaid taxes, interest, and penalties.
We cannot issue a clearance certificate until you have done both of the following:
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filed all the required returns and we have assessed them
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paid or secured all amounts owing
To ask for a clearance certificate, complete Form TX19, Asking for a Clearance Certificate. You can submit the completed request by mail or fax, or online, using Represent a Client, My Account, or My Business Account as indicated on the TX19.
For more information, see Information Circular IC82-6R13, Clearance Certificate.
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