Finance notes the narrow scope of the s. 15(2.11) PLOI election

S. 15(2.11) PLOI elections can be made to elect out of s. 15(2) only by corporations resident in Canada (CRICs) where controlled by a non-resident corporation. However, similar s. 15(2) issues arise on loans made by CRICs to non-resident sistercos, where they are both controlled by non-resident individuals or a Canadian-controlled private equity fund.

Finance indicated that it has not had time to really consider the broader issues that would be engaged under these structures were this requirement for control by a non-resident corporation to be relaxed. It traced this requirement to its formulation of the foreign affiliate dumping rules.

Neal Armstrong. Summary of 16 May 2018 IFA Finance Roundtable, Q.9 under s. 15(2.11).