Section 116 Tax Return Certificate of Compliance

When to file an

Application for a Certificate of Compliance

– If you a non-resident of Canada for tax purposes and selling a property in Canada
– You must apply for a certificate of compliance as earlier as 30 days before the closing of the
property and no later than 10 days after closing.
– If you did not file the request for a certificate of compliance within 10 days of closing of the
property, CRA may charge you $25 per day a late filing up to a maximum of $2500.
– The seller’s lawyer will withhold a 25% of gross sales in a trust account until a you provide
him/her a certificate of compliance
– Once you will provide the lawyer a certificate of compliance the lawyer will release the 25% of
gross sales
– The tax payer should file a section 116 return to report the disposition of property at the end of
the year.
Please complete the checklist and let us help you in filing for a certificate of compliance certificate.

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