T3 Engagement/Representation Combination Letter
[Date]
[Practitioner’s Name]
[Practitioner’s Firm Name]
[Firm Address]
[Trust Name]
[Trustee Name]
[Trust Address]
Dear [Practitioner]:
Subject: Letter of Engagement and Representation
As the executor(s)/trustee, I/ we wish to confirm the following arrangements in respect of the T3 trust return for the trust
taxation year ended [INSERT TRUST YEAR END DATE] which I/we have engaged you to prepare.
By engaging your services, I/we agreed to provide personal information necessary for you to meet its service requests. Before
providing you with any personal information on behalf of others, I/we agreed that we obtained consent for collecting, using and
disclosing this information, according to privacy legislation.
1.
I/We have provided the required information to complete the return. This includes, but is not limited to, T3 and T5 forms and
other information slips, all information related to any capital gains or losses transactions, summaries of income and
expenses relating to any real estate rentals, necessary supporting documentation, and other information needed to
complete the return.
2.
With respect to the foreign property disclosure and reporting rules, by initialling below, I/we confirm:
______
The issues and potential significant penalties for non-disclosure or failing to complete the prescribed forms by
the required filing date were discussed, and I/we confirm that the trust has no assets which qualify as foreign
assets and confirm that the trust has not received funds or property, or been indebted to, a non-resident trust
in which it had an absolute or conditional right as a beneficiary, either directly or indirectly, as defined in the
rules.
______
The issues and potential significant penalties for non-disclosure or failing to complete the prescribed forms by
the required filing date were discussed, and I/we confirm that the trust does have assets which qualify as
foreign assets and confirm that the trust has not received funds or property, or been indebted to, a nonresident trust in which I had an absolute or conditional right as a beneficiary, either directly or indirectly, as
defined in the rules. I/we also confirm that the cost amount of the foreign assets did not exceed $100,000
Canadian at any time during the trust's fiscal year and therefore instruct you not to complete the prescribed
Form T1135 Information Return Relating to Foreign Property.
______
The issues and potential significant penalties for non-disclosure or failing to complete the prescribed forms by
the required filing date were discussed, and I/we confirm that the trust has assets which qualify as foreign
assets and confirm that the trust has not received funds or property, or been indebted to, a non-resident trust
in which I had an absolute or conditional right as a beneficiary, either directly or indirectly, as defined in the
rules. I/we also confirm that the cost amount of the foreign assets did exceed $100,000 Canadian at some
time during the trust 's fiscal year and therefore instruct you to complete the prescribed Form T1135
Information Return Relating to Foreign Property as part of engaging you to complete the T3 trust return. I/we
understand that by instructing you to complete this form there may be a separate fee levied for its completion.
______
The issues and potential significant penalties for non-disclosure or failing to complete the prescribed forms by
the required filing date were discussed, and I/we confirm that the trust has assets which qualify as foreign
assets and confirm that the trust has received funds or property, or been indebted to, a non-resident trust in
which the trust had an absolute or conditional right as a beneficiary, either directly or indirectly, as defined in
the rules. I/we also confirm that the cost amount of the foreign assets did exceed $100,000 Canadian at some
time during the trust's fiscal year and therefore instruct you to complete the prescribed Form T1135 Information
Return Relating to Foreign Property as part of engaging you to complete the T3 trust return. I/we also confirm
that I/we instructed you to complete Form T1142 Information Return in Respect of Distributions From and
Indebtedness Owed to a Non-Resident Trust as part of engaging you to complete the T3 trust return. I/we
Updated February 2014
understand that by instructing you to complete these forms there may be a separate fee levied per form for
their completion.
3.
I/we accept responsibility for the accuracy of the information provided to you and understand that you made no audit,
review or other attempt to verify the accuracy of the information.
4.
I/We have disclosed all executor's remuneration paid and understand that those amounts are income to the
executor(s)/trustees in the year it was received and agree to include it on my/our personal tax return(s). I/we
acknowledge it is my/our responsibility to ensure that any T4 and/or T4A slips required to be filed for this remuneration will
be filed with CRA and that the required payroll remittances including income tax and CPP will be paid.
5.
Upon receiving the Notice of Assessment for the T3 Trust Return from CRA, I/we will notify you immediately of any
discrepancy between the information filed and the assessed amount, so you can determine the reason for the difference
and any action that may be required to resolve the difference. I understand that CRA allows only 90 days for an objection
to be filed, so time is of the essence.
6.
Before signing this letter, I/we reviewed the T3 trust tax return and have discussed with you any items that require
clarification or that appear incorrect. I/we confirm that if there were any items that needed clarification or correction they
have been resolved to my/our satisfaction. I/we understand the information on the trust income tax return may be
inappropriate for other purposes.
I/we am aware of your duty of confidentiality with respect to client affairs. Accordingly, except for information that is in the
public domain, I/we am aware that you will not provide any third party with confidential information concerning the trust’s affairs
without my/our prior consent, unless required to do so by legal authority, or by the Code of Ethical Principles and Rules of
Conduct (CEPROC) of the Certified General Accountants Association of British Columbia. Further, in order to complete your
engagement, I/we am aware that you will require access to certain personal information. I/we hereby represent to you that I/we
have obtained all consents that are required under applicable privacy legislation for the collection, use, and disclosure to you
of personal information and that you will manage all personal information in compliance with your Privacy Code. Before I/we
provided you with any personal information on behalf of others, I/we agreed that I obtained consent for collecting, using and
disclosing this information, according to privacy legislation.
I/we am aware that the Proceeds of Crime (Money Laundering) and Terrorist Financing Act places certain legal requirements
on you to report transactions that may be suspicious of being related to a money laundering or a terrorist financing offence. It
also requires that you report large cash transactions that exceed $10,000, the cross-border movement of currency or monetary
instruments that exceed $10,000, and whether the trust is in possession or control of property that is considered terrorist
property. Finally, I/we am aware that the Act requires you to ascertain the identity and existence of clients and other entities.
To meet these obligations, you may have to report information about the trust that might otherwise be confidential. The
reporting of this information may place me/us and you in a conflict of interest. Should such a conflict arise I/we am aware that
you may be required to withdraw from this engagement. I/we hereby acknowledge this legal requirement placed upon you and
the potential conflict of interest that may arise as a result of it. I/we also hereby authorize you to release and disclose
information related to the trust if and when required by statute to do so.
I/we am aware that in accordance with professional requirements, your client files are subject to periodic practice review by
your provincial governing body as a self-regulating professional organization responsible for regulating its members and
protecting the public. You have made me/is aware that the practice reviewers are required to maintain strict confidentiality of
any client information they may encounter during this process.
If applicable, I confirm that I am the executor/trustee of the estate and as such have authority to approve and file the final tax
return (if applicable). If there is more than one executor, I have reviewed the final tax return with my co-executors and I have
their consent to approve and file the final return (if applicable).
Further, I/we have reviewed your billing and found it to be satisfactory.
Sincerely,
_____________________
[Trustee Name]
[Date]
Updated February 2014