Effective January 1, 2020 the Ontario government provided some small relief to Estates by amending the Estate Administration Tax Act, 1998, S.O 1998, c.34, and removing the tax payable on the first $50,000 of the value of Estate assets reported on an Application for Certificate of Appointment. Previously, Estate Administration Tax (“EAT”) was calculated at .5% or $5.00 per thousand, for the first $50,000 and 1.5% or $15.00 per thousand for any value reported over $50,000. Therefore, any Estate (for which an Application for Certificate of Appointment is required), where the value of the Estate is $50,000 or less, will no longer have to pay any EAT. For all other Estates where the value of the Estate is over $50,000, no tax will be calculated on the first $50,000 but the tax remains at 1.5% for the value of assets reported over $50,000.
The government also provided a little time relief to Estates. Prior to January 1, 2020, the time for filing an Estate Information Return (“EIR”) was only 90 days from the date of the grant of Certificate of Appointment, but, this has now been doubled to 180 days. There is now also an extension of the time required to file an amendment, which was previously only 30 days, but, has now been extended to 60 days.