In 2013-0513191E5, the CRA responded to four questions regarding the responsibility and liability of an executor in a situation where the deceased taxpayer was the sole director and shareholder of a corporation.  The four questions were:

  1. Is an executor required under the ITA to file T2 returns for the corporation of which the deceased was a sole shareholder and director?
  2. Can the CRA make the deceased taxpayer liable for the debts owed by the corporation?
  3. If so, could the executor object to this?
  4. If the deceased taxpayer could be held liable, could the executor be similarly held so?

The CRA responded:

  1. No.
  2. Yes, under sections 227.1 and 160, as examples.
  3. Yes, the executor could challenge the assessment.
  4. If the executor does not obtain a clearance certificate when distributions are made, he or she could be liable.