So I have heard from one (of what I expect to be a handful) of recently retired/former small T2 clients. He has a letter telling him that the corp has been issued a CCR based on prior years payrolls. My recollection is that there IS a way to have late refunds assigned to (former) shareholders. Is that correct and if so, how do we go about this? Thanks in advance.
Once the corporation is dissolved, any refunds to which the corporation would be entitled revert to the Crown and cannot normally be issued to the corporation or its representatives unless the charter is reinstated.
If the corporation was not involuntarily dissolved and the charter is not reinstated, a refund can be issued if all returns have been filed up to the date of dissolution for all revenue lines (T2, GST, and other levies returns) and the refund is issued to one of the following:
- the sole shareholder of the corporation
- a legal representative of the corporation when there are multiple shareholders
If these conditions are not met, the refund will remain with the Crown.
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OTOH, some folks just deposit the cheque by “picture” in their personal accounts and that is that. (Not saying this is correct to do, of course, but some banks don’t bother checking on small amounts.)
That hadn’t even crossed my mind, lol. But I do know that some of my clients’ banks have actually looked the other way in similar situations so…