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Calculate Tax Return Canada

Question: Why does it take so long for Revenue Canada to do an assessment on a T-3?

A few months ago, we filed a T-3 return for my late father’s estate. There were just two things we reported:..the $2,500.00 Death Benefit, & $859.00 minus $89.45 (tax) that the estate received. My accountant calculated a balance owing of approx. $534.00 which I sent along with the return. Rev. Canada send a receipt. There weren’t any assets, properties, stocks, bonds etc to distribute, as my father didn’t have any. He lived in a retirement residence at the time of his death. I can’t figure out why it takes so long to do an assessment on a T-3 return when this one is so simple.
The reason for not putting the amount on my own return was to avoid higher taxes. The $2500.00 death benefit alone would be approx. 23%, and that 23% would apply to the whole return, which in turn would mean much higher taxes. This way, it’s the estate alone which would be taxed..and the balance owing was calculated to be $534.00.
So Sparky, you’re quite right in what you said..I’d already done it.

Answer: The timeframe for a T3 return is approx four months, which is written directly into the T3 Trust Guide. Why it takes that long, well you cold try calling CRA and ask them, but I doubt they’d be able to give you an answer. And, of course, they will never guarantee any time frame due to their ability to review returns any time they choose.

BTW: I can understand the reason for filing the return. The advantage is that if these amounts did not go on the T3, they would probably have to go into your own income, which might be at a Higher Tax Bracket, and could poteltially clawback Child Tax Benefits, OAS or GIS, as the case might be.

Self-assessment test for Federal Skiled Workers Canada