NQS, GRE and the ITA – Three letters, two concepts, and one complicated issue
Over a year ago then Finance Minister Jim Flaherty announced that there would be major changes in the way Canadians would be taxed at death. The new system created what was called a Graduated Rate Estate which, amongst other things, entitles the estate of a taxpayer to the graduated rates of tax which are applied to living taxpayers. After 36 months the estate, if not wound up by then, would be taxed at the highest marginal rates.