Revenue Canada Taxation Head Office
XXXX
D.Y. Dalphy (613) 957-2134
Attention: XXXX
NOV 18 1986
Dear Sirs:
This is in reply to your letter of August 25, 1986 regarding the requirements to file income tax returns in respect of deceased persons.
It is our understanding that, as the maximum penalty imposed under subsection 162(1) of the Income Tax Act (the "Act") would have been levied irrespective of whether the terminal return of Mr. Koziej was required to be filed within six months of his death or by April 30 of the following year, the matter of the exact timing of the filing requirement regarding terminal returns was not at issue in John W. May, Executor of the Estate of Adam Koziej v. M.N.R. ( 85 DTC 690). Accordingly, our long-standing practice (that such a return must be filed by either April 30 of the year following the year of death or six months after the date of death, whichever is later) will be maintained.
Finally, and with regard to requirements to file an income tax return in respect of a deceased person where there is a spousal trust to which subsections 70(6) or 70(7) of the Act apply, we are of the opinion that the extension of the filing date to eighteen months from the date of a taxpayer's death applies only where there is a spousal trust to which subsection 70(7) of the Act applies. The general filing requirements as stated above apply where there is a spousal trust to which subsection 70(6) applies.
We hope this information will be of assistance.
Yours truly,
for Director Small Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch