Making a s. 89(11) election does not trigger a year end

Where a corporation which otherwise would be a Canadian-controlled corporation makes a s. 89(11) election for a taxation year, it is deemed throughout that taxation year and thereafter (subject to revocation of the election) not to be a CCPC for specified purposes, including s. 249(3.1), which deems a year end when a corporation becomes or ceases to be a CCPC. However, since the deemed status change from making the election thus occurs at the very beginning of that taxation year, there is no effect on its taxation year end.

Neal Armstrong. Summary of 22 October 2014 Memo 2014-0550191I7 under s. 249(3.1).