29 January 2015 Interpretation 167061

In the course of a general discussion on completion, filing and revocation of form RC4616, CRA stated:

[Effect of disqualification]

[I]n the event that a particular specified member of a qualifying group no longer meets the qualifications of the election, an election made with that particular member is no longer in effect. Any elections made between other specified members listed on that form (i.e., not made with the particular member) would not be affected. There is no requirement to advise the CRA or modify a previously filed Form RC4616 where a person no longer qualifies… .

[Avoiding inadvertent revocation]

In the event that a particular specified member of a qualifying group wishes to revoke an existing election...care must be taken in filing the revocation to ensure that the elections between the other specified members remain in effect. Every pair combination of members whose names appear in Part A of the Form RC4616 (and on any attached page) would be considered to have revoked their election. Consider the following example[:] ...

[U]sing MyBA or the paper Form RC4616:...an election is made between Parent Co and Subco 1; ...between Parent Co and Subco 2; and...between Subco 1 and Subco 2. Parent Co wishes to revoke both (i) the election made with Subco 1 and (ii) the election it made with Subco 2; however, Subco 1 and Subco 2 do not wish to revoke the election made between them. Since every pair combination of members whose names appear on the form (and on any attached page) would be considered to have revoked their election, two separate Forms RC4616 should be filed either electronically or on paper: (i) a revocation of the election between Parent Co and Subco 1; and (ii) a revocation of the election between Parent Co and Subco 2.

In the course of a general discussion on completion and filing of form RC4616, CRA stated:

[Filing by one specified member]

[T]he first specified member identified in Part A on the paper Form RC4616 may file the form on behalf of all specified members wanting to make or to revoke an election. That is, where there are more than two specified members of a qualifying group making an election or revocation of an election, only one Form RC4616 is required where all of the pair combinations of specified members whose names are listed in Part A (and on any attached page) are making the election or revocation.

[Quebec form]

...If the same members of the qualifying group also want similar relief from the...QST...they would be required to elect...by filing with Revenu Québec (provided they are not selected listed financial institutions) the Form FP-4616... .

[MyBA filing/viewing/amendment]

...[E]lectronic filing of the election or revocation...is expected to be available through My Business Account (MyBA) in mid April 2015. Once electronic filing is available, registrants will be able to view, through MyBA, section 156 elections that they have filed, either electronically or by using the paper Form RC4616, as well as those filed by another specified member on their behalf.

...[Once] a section 156 election has been filed either electronically or on paper, the election can be modified through MyBA. In the case of a particular specified member of a qualifying group wishing to elect with another specified member (or members) of that group after 2014, the response provided to question 1.e applies whether the election was filed electronically using MyBA or the paper Form RC4616.