Principal Issues: Whether the CRA would defer processing a validly made election under subsection 184(3) until the Appeals Branch of the CRA confirms the Part III tax assessment, or until the court rejects the corporation's appeal?
Position: In document 2007-0221211I7, it was confirmed that, technically, the CRA could not defer the processing of a validly filed subsection 184(3) election until the ultimate resolution of an objection or determination by a court. The position has now been changed. The Assessment and Benefit Services Branch is now generally accepting to hold in abeyance a subsection 184(3) election filed in a timely manner until the resolution of the objection and subsequent appeal to court, if any, of the Part III tax assessment.
Reasons: Assessment and Benefit Services Branch position.