7 March 1991 Income Tax Severed Letter - Whether the subsection 85(8) penalty is applicable to each property included in an election on the basis that where there are several properties listed on one election form each property is considered to be the subject of a separate election

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.

Subject: Penalty Application Subsection 85(8)

We have been asked to provide a tax practitioner with a technical interpretation of the provisions of subsection 85(8) of the Income Tax Act (the "Act"). Specifically, the practitioner wishes to know if the penalty is applicable to each property included in an election on the basis that where there are several properties listed on one election form each property is considered to be the subject of a separate election.

As you are aware, Information Circular 76-19R2 outlines the Department's position to the effect that each property transferred pursuant to section 85 of the Act is the subject of a separate election notwithstanding that several properties may be listed on a single election form. However, XXX On the assumption that the practitioner in question is seeking confirmation of our administrative position, we are forwarding his letter to you for reply.

We would appreciate receiving a copy of your response.