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 or not a taxpayer can late file a subsection 14(1.01) election.
Position: No.
Reasons: Neither subsection 14(1.01) of the Act, nor subsection 220(3.2) of the Act and section 600 of the Regulations, provide the means to do so
XXXXXXXXXX 2003-018362
A. Seidel
(613) 957-2058
January 28, 2003
Dear XXXXXXXXXX:
Re: Subsection 14(1.01) Election
We are writing further to your telephone inquiry of January 17, 2003, concerning subsection 14(1.01) of the Income Tax Act (the Act). You requested our written views as to whether a taxpayer may late file the election permitted under this provision.
Where all of the conditions of subsection 14(1.01) of the Act are satisfied, a taxpayer may elect, in the taxpayer's return of income for the year, to treat the disposition of an eligible capital property, other than goodwill, as the disposition of a capital property in the taxation year of the disposition. Subsection 14(1.01) of the Act does not include a provision that would entitle a taxpayer to late file such an election. Furthermore, for the purposes of subsection 220(3.2) of the Act, a late filed election under subsection 14(1.01) of the Act may not be made since it is not prescribed in section 600 of the Income Tax Regulations (the Regulations). Finally, we are unaware of any other means under the Act or the Regulations to late file the election otherwise permitted under subsection 14(1.01) of the Act.
Yours truly,
John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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