Estate administration tax just another tax grab, says Huron-Bruce MPP

To the Editor:

For the past decade, Ontarians have seen their hard-earned dollars evaporate faster than ever as the Liberal government continues to introduce new taxes, raise hydro rates and misspend tax dollars.

Now the Liberals have sunk to a new low with their intention to further tax the deceased and their loved ones.

Since the government announced its plan to bring forward this compassionless tax, I have received many letters and E-mails from people throughout Huron-Bruce upset about yet another insensitive Liberal tax grab, this time when families are at their most emotionally vulnerable. Please trust I share your outrage and want to let you all know that I stand with you and your loved ones.

 

In 2011, my colleagues and I strongly opposed the budget that would give the finance minister the authority to bring in changes to the estate administration tax. Four years later, without any debate or allowing those of us who oppose it the opportunity to voice our concerns in the Legislature, the government is finally introducing it, with devastating results.

 

These changes in the estate administration tax now broaden the criteria of what will be affected (such as the value of clothing owned by the deceased), shortens the amount of time that is required to comply with the rules, and increases the penalties for misfiling. The end result is that people who are still in shock over the death of a loved one, will be forced to try to pull information together in a very short period of time - or face significant penalties.  

 

An executor is now required to access, appraise and value any and all property owned at the time of death (excluding anything that is passed directly to a spouse or through joint ownership) on a tight 90-day timeline, and include assets that are being gifted to charity. The tax is then calculated and must be paid immediately to the Province of Ontario as a deposit.

In Ontario, this means that the estate will pay $5 for every $1,000 worth of property up to $50,000 total property value, and $15 for every $1,000 worth of property past the $50,000 total threshold. In comparison, most other provinces charge $3 to $6 for every $1,000 of property with no changes for over $50,000. 

 

Most alarmingly, if an executor fails to file the required estate information or makes false or misleading statements (which could happen innocently when people are put under pressure), he/she could be found guilty of an offence and face stiff penalties, including up to two years in prison. 

 

With the introduction of the carbon tax, the payroll tax, and now the death tax, the Liberals seem to be on a mission to make life harder for families in Huron-Bruce and across the province, and now our legacies have been reduced to nothing but a dollar sign.

 

This policy will do nothing but further stress those who have already suffered a devastating loss. The Liberals need to show more compassion for people who are dealing with difficult circumstances. We know the government has a spending problem, but it has escalated to the point where we are taxed to death - every which way you look at it. Shame on them.

Lisa Thompson
Huron-Bruce MPP