CRA will not provide relief where the lack of congruence between the 3-year late PLOI election and 2-year Part XIII refund deadlines bites

A potential anomaly arises because a late PLOI election to eliminate Part XIII tax on a s. 15(2) loan can be made by the Canadian lender (the "CRIC") within 3 years from its filing due-date for the year the loan was made whereas, if it actually was bone-headed enough to remit the Part XIII tax, a s. 227(6) refund application must be made within 2 years after the end of the calendar year in which the Part XIII tax was paid – so that a scenario, in which the CRIC was precluded from getting a refund of the retroactively eliminated Part XIII tax, theoretically could arise.

Neal Armstrong. Summary of 7 November 2014 T.I. 2014-0542061E5 under s. 227(6).