CRA confirms that an otherwise late s. 70(2) election can be made by filing an amended terminal return so as to trigger a reassessment

An estate received a salary adjustment after the later of one year following the deceased’s date of death and 90 days after the mailing of the original notice of assessment for the terminal return. CRA confirmed that the deceased's legal representative could amend the terminal return to include the salary adjustment, thereby triggering a notice of reassessment, and then use that reassessment as the basis for making an election under s. 70(2) (within 90 days of the reassessment) to file a separate rights or things return in respect of the adjustment, which is permitted to be made within 90 days of “any” assessment of tax of the deceased for the year of death. Although not discussed, the representative presumably would then request that the adjustment be backed out of the terminal return, and timely object if this was not done (i.e., the initial amendment request would be a feint).

This interpretation clarified 2024-1023291C6, in which CRA did not acknowledge that the reassessment of the amended terminal return then created the opportunity to timely file what otherwise would have been a late s. 70(2) election.

Neal Armstrong. Summary of 26 June 2026 External T.I. 2025-1056521E5 under s. 70(2).