The Ontario Government circulated the EAT rules without much fanfare; The complete copy can be read here.
The estate administration tax is imposed on the value of all the property that belonged to the deceased at the time of his or her death less the actual value of any encumbrance on real property that is included in the property of the deceased. It is a requirement under the Estates Act that this value be disclosed when the estate representative files an Application for a Certificate of Appointment of Estate Trustee with the Superior Court of Justice. The estate administration tax must be paid as a deposit at this time.
Cheques for paying the estate administration tax are made payable to the Minister of Finance.
Is estate administration tax the same as an inheritance tax?No. The estate administration tax is paid by the estate and is based on the value of the estate.
Inheritance tax is a tax imposed on someone who inherits property or money from the deceased's estate (i.e., the beneficiaries). Ontario does not impose an inheritance tax.
The estate administration tax is payable only if an estate certificate is issued by the court.
In Ontario, the estate administration tax has been imposed on estates that receive estate certificates since 1998. Before 1998, this tax existed in Ontario as probate fees for many decades.http://www.fin.gov.on.ca/en/tax/eat/faq.html#Q1
This will impose a hardship on the estate administrator to comply quickly and prepare the tax to avoid penalty that would be levied against them.
I guess SOMEONE #onpoli needs the money.
Are you dealing with an estate? Can I help? Call me today 647 218 2414