On January 1st, 2015, the Government of Ontario made changes to the $143 Million Dollar Ontario Estate Administration Tax (EAT) – the death tax. These changes have left families filing paperwork while still reeling from the loss of a loved one. After losing a family member, the estate trustee – usually the children of the deceased or a grieving spouse – has only 90 days to assess, appraise, and value all property owned, and file that information with the provincial government. Failure to comply can result in fines starting at $1000, and potentially even jail time.
Grieving families deserve compassion and peace of mind, not the taxman at their door cataloguing their loved one’s belongings.
Ontario residents pay taxes their entire lives, on all of our hard work and savings—our income and investments. We also pay taxes on the things we buy and cherish, be it the car in the garage or the painting on the wall. The people of Ontario recognize the importance of certain taxes to pay for the services that we need, and to support our most vulnerable. This morbid tax means we are being taxed to death, at death, and after death.
The Ontario death tax amounts to a tax on a lifetime of hard work and sacrifice. It punishes families who have been smart with their money, saving for their future, and the future of their family. It punishes people who have spent their lives building something from the ground up, like a small business or the family farm. A person’s assets should be kept for their children or spouse or for charitable causes that they hold dear, not taxed and then re-taxed by the government of the day.
This is a bad tax, at a bad time, against hardworking families. It increases the cost of living and doing business in Ontario, and it shows a lack of compassion for families reeling from tragic loss.
That is why I support MPP Monte McNaughton’s Private Member’s Bill, known as Bill 120, the Estate Administration Tax Fairness Act. This bill seeks to roll back and cap the Ontario death tax, and would completely exempt estates valued at less than $50,000 from paying any death taxes at all.
The Ontario PC Caucus believes that government should be making it easier for families and small businesses to get by, not harder. If passed, this bill specifies that any portion of the estate donated to charity will also not be taxed. By capping and reducing the death tax along with removing the requirement to file within 90 days, the bill brings a small amount of compassion to the settling of a loved one’s estate, and will provide meaningful tax relief to all Ontario residents.
The Estate Administration Tax Fairness Act is up for debate and second reading on Thursday, September 24th. I’ve heard from several of my constituents that they are concerned about the Estate Tax which is why I’m proud to speak in support of my colleague Monte McNaughton on Sept. 24. I encourage you to provide your input on the Estate Administration Tax, and Bill 120.