Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: Whether we can extend the September 11, 2001 deadline for shareholder elections filed under new s.86.1.
Position: No. However, the timing problems are being reviewed by Wayne Adams with Finance and A&C Branch is also looking into this.
Reasons: There is no provision for extending the filing deadline in this case.
XXXXXXXXXX
Dear XXXXXXXXXX:
I am writing in reply to your letter of November 8, 2001, concerning the granting of extensions of time to file the foreign spin-off election found in section 86.1 of the Income Tax Act (the "Act").
In your letter, you comment on the difficulties encountered by trustees and sponsors of mutual fund and pooled fund trusts, with respect to the timing of the foreign spin-off election. In particular, you describe the problems of these taxpayers in trying to meet the September 11, 2001 election deadline for foreign spin-offs that took place in 1998, 1999 and 2000. You also note that you identified the time limit for filing a foreign spin-off election as a problem in a letter to the Department of Finance dated January 10, 2001. This letter was copied to the attention of Mr. Bernhard Buetow of the Canada Customs and Revenue Agency (CCRA).
The issues that you have raised involving the timing of the foreign spin-off election, including the matter of the September 11, 2001 election deadline and the more general problems being encountered by corporate trustees, are currently under consideration by the CCRA. We continue to be of the view that, as a matter of law, we cannot accept late-filed foreign spin-off elections, however, we are in contact with officials of the Department of Finance with a view to resolving this and related issues. I would be pleased to advise you of the outcome of our discussions.
I trust the comments provided are helpful.
Yours sincerely,
Bill McCloskey
Assistant Commissioner
Policy and Legislation Branch
Eliza Erskine
952-1361
November 30, 2001
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2001
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2001