CRA effectively indicates that, to disengage a single PLOI election, the loan agreement must be replaced

Effective March 25, 2022, CRA adopted an administrative policy that requires only one PLOI election to be made in respect of each loan or indebtedness governed by the same agreement owing by each non-resident person, with no election being required to be made regarding amounts borrowed under the same agreement in a subsequent taxation year. What if the taxpayer does not wish to have the election apply to amounts advanced under the agreement after the initial year of the election?

CRA indicated:

• If the intention is to treat only certain amounts as a PLOI, then the above policy does not apply, and a separate election should be filed in respect of each separate amount under the agreement.
• Taxpayers who have engaged the policy by making a single election in respect of all amounts made under the same agreement, and then no longer wish for the election to apply to amounts borrowed in subsequent years should ensure that those amounts are governed under a separate agreement. (This seems to imply a necessity of terminating or bifurcating the current loan agreement.)
• The single election to engage the administrative policy is made by checking “yes” in field 100 of Form T1521. If the administrative relief is not desired, a separate election for each separate amount should be made, and “no” checked in field 100 in each T1521 form.

Neal Armstrong. Summary of 15 May 2024 IFA Roundtable, Q.6 under s. 15(2.11)(d).