S 161(7) provides that interest on taxes payable for a year should be computed without reference to any reduction of tax payable resulting from the carryback of donation credits where a gift is made in a subsequent taxation year.
The CRA does allow a terminal return to be filed that reduces taxes payable for gifts that an estate will make in a subsequent year.
D Morrison “Charitable Gifts by Will: New Rules Create Arrears Interest Consequences” 22:1 Tax for the Owner-Manager (Jan 2022)
