CRA & Tax
What Is a CRA Clearance Certificate and Why You Need One
A clearance certificate confirms that CRA has no outstanding claims against amounts you distribute to shareholders.
Why it matters
If you pay out money before it is issued, you can be personally liable for the corporation's unpaid taxes up to the amount distributed.
How it works
- Your accountant files final payroll, GST/HST and corporate returns.
- Your accountant submits the request (forms TX19 and GST352).
- Wait for the certificate before distributing funds.
Allow several months. Start early.
This article is general information, not legal, tax or accounting advice.
Next steps
Not sure where you stand? The free check shows your options side by side.
Start the free check →Free · 6 questions · about 2 minutes