Yes. The account and any accrued interest form part of the estate, and the interest is taxable income on the final return.
The Canadian position
Interest is reported on the final return regardless of any religious treatment.
The Islamic position
Where interest has accrued, scholars commonly direct that portion to charity rather than to the heirs. That is achieved practically through a bequest or by agreement among the heirs — Canadian law will not do it automatically.
The four Sunni schools are not recorded as differing materially on this point in the sources reviewed. Where your own case turns on it, put it to a scholar of your school.
General information, not legal or religious advice. Inheritance depends entirely on the exact family circumstances. Confirm the Canadian position with a lawyer in your province and any religious ruling with a qualified scholar.
Citations & sources
Every factual claim on this page traces to one of the references below. Legislation and dollar thresholds change — verify against the primary source before relying on any figure.
- Shari'ah Standards — AAOIFI
- Egyptian Dar al-Ifta — Dar al-Ifta al-Missriyyah
- Research Papers — Cambridge Muslim College
- Research — Cambridge Muslim College
- Academics — Islamic law and theology curriculum — Zaytuna College
- Encyclopaedia of Islam — Brill
- What to do when someone has died — Canada Revenue Agency
- Income Tax Act, RSC 1985, c 1 (5th Supp) — Justice Laws Canada
- Wsib clearance certificate business sale ontario — Treadstone Law
- How cra values assets deemed disposition death canada — Treadstone Law
- Deemed disposition canada death emigration trusts — Treadstone Law
- Does ontario have an estate tax — Treadstone Law
- Deceased final tax return estate taxes ontario — Treadstone Law
- Disability tax credit deceased persons final return canada — Treadstone Law
- Wills & estates practice — Treadstone Law