Jki-facebook-light Twitter Instagram Pinterest Youtube

Certificate of Compliance in Canada

Certificate Of Compliance Services

Home

Certificate Of Compliance

When to File an Application for a Certificate Of Compliance

Important Information for Non-Residents Selling Canadian Property

  • As a non-resident of Canada for tax purposes, you must apply to the Canada Revenue Agency (CRA) for a Certificate of Compliance when selling property located in Canada.
  • Therefore, you should apply for this certificate as early as 30 days before the closing date and no later than 10 days after the sale closes to avoid delays.
  • Otherwise, if you do not file the request within 10 days after closing, CRA may charge a late-filing penalty of $25 per day, up to a maximum of $2,500.
  • Meanwhile, your lawyer must withhold 25% of the gross sale proceeds in a trust account until you provide the Certificate of Compliance.
  • Once you submit the certificate, the lawyer can release the withheld funds.
  • Additionally, the CRA may issue a clearance based on the estimated gain, allowing the taxpayer to access part of the withheld funds earlier.
  • Finally, you must file a Section 116 return at the end of the year to report the sale and determine your final tax liability.

How It Works

Process of Online Income Tax Return Filing with Taxreturnfilers eAdvisor

  • First, download the checklist and answer a few basic questions.

  • Next, fill in the required details in the form.

  • Then, upload the saved checklist from your system.

  • After that, make the fee payment.

  • Finally, your return will be filed by our Advisor.

Let Me Show You How It Works

  • Enter your contact details and make payment.

  • We will then assign a Tax Planning Specialist (Advisor) to assist you.

  • Afterward, the Advisor will email or call you to understand your tax situation.

Leave all the hard work to us. We will:

  • Analyze your previous year’s tax return for any excess tax you have paid.

  • Make sure you claim all available tax credits and deductions.

  • Check your business structure to determine if it is the most tax-friendly option.

Hurray! Your Taxes are Planned & Return is Filed!!!

  • The Advisor prepares your tax planning report.

  • Furthermore, we suggest deductions to help you save the maximum tax.

  • We will also remind you in early March to file your taxes once your T-slips are received.