Thursday, September 24, 2015

Wynne is going to follow you into the grave for the last cent you made in life

 Become a fan 
Ontario Director, Canadian Taxpayers Federation


Nothing is certain but death and taxes, and it seems that Premier Kathleen Wynne is managing to make both worse for Ontarians.
On January 1, 2015, onerous new estate rules took effect in Ontario.
When a person dies, their assets are managed by an estate representative. In most cases, that person is the grieving spouse or children.
Ontario has the highest Estate Administration Tax (EAT) the country. The EAT was previously called a "probate fee," but in this rare instance of honesty the Ontario government has changed the name to reflect what it really is -- an estate tax.
The EAT rate is currently $5 per thousand for the first $50,000 of an estate, and $15 for each $1,000 after that. So an estate valued at $240,000 would pay a $3,100 in EAT. A $1 million estate would pay an EAT of $14,500. In other provinces, the rate is a flat set amount, or does not exceed $7 per $1,000 compared to Ontario's $15.
And of course, the EAT is paid on top of the taxes that Ontarians pay on the investments and assets they spend their whole lives working hard to acquire and leave to their children.
Starting this past January, the rules around becoming an estate representative changed to create a great deal more work, and increased liability.
Under the old rules, staff at the local court would assess and collect the Estate Administration Tax based on a sworn statement listing the deceased's assets and their value. Under the new rules, the tax is not collected at the court. Now, the representative must apply for the Certificate of Appointment, and within 90 days, submit an "Estate information Return" to the Ministry of Finance. The Return must include a breakdown of the fair market value of each asset owned by the deceased on the date of death, and a detailed description of the assets. This requires onerous appraisals and valuations, and the detailed collection of information.
If the estate representation finds a mistake in the Return, a correction must be made within 30 days.
Failure to comply with these new burdensome rules can result in fines starting at$1,000, imprisonment for up to two years, or both...More

No comments:

Post a Comment