Subsection 249.1(1)
See Also
Les Développements Iberville Ltée v. Agence du Revenu du Québec, 2018 QCCA 1886 (Quebec Court of Appeal)
Three affiliated Quebec corporations sought to avoid most of the Quebec tax on the sale of Quebec real estate at a gain of around $800M (including...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | abuse to use rollover provisions to avoid rather than defer tax | 683 |
| Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) | abuse of Quebec equivalents of ss. 85(1) and 97(2) to avoid (rather than defer) tax | 420 |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | property bifurcated between capital and income portion on acquisition | 98 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense | improvements to leased retail premises were not demonstrated to be made only at tenants’ requests | 106 |
| Tax Topics - Income Tax Regulations - Regulation 402 - Subsection 402(6) | purpose of inter-provincial allocation rules is for 109% of income to be allocated and taxed | 558 |
Administrative Policy
24 December 2020 Internal T.I. 2020-0874951I7 - Change to FPE for CEBA
Does s. 249.1(7) provide the Minister with the discretion to allow a taxpayer’s request to change the taxpayer’s fiscal period end (“FPE”)...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 249.1 - Subsection 249.1(7) | a corporate taxpayer can reset its first taxation year end after it has filed its first return and before it has been assessed | 88 |
15 August 2012 External T.I. 2012-0438481E5 - Change of Fiscal Period Year-End
In 2012-0438481E5, a corporation with a February 28 year end was not entiled to file on the basis of a February 29 year end in a leap year. Is it...
14 November 2002 Internal T.I. 2002-0169957 F - "Exercice" - Effet de 134.2
After indicating that the s. 134.2 election affects only the electing corporation's current taxation year and has no effect on its "fiscal...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 134.2 - Subsection 134.2(2) | s. 134.2 election has no effect on corporation’s fiscal period | 25 |
11 September 1996 External T.I. 9609405 - FISCAL PERIOD - BARE TRUST
Where a corporation holding real estate acted as bare trustee for its beneficial owner, which was another corporation acting for a group of...
Paragraph 249.1(1)(a)
Administrative Policy
7 September 2006 External T.I. 2006-0173701E5 F - Exercice financier d'une société
A resident corporation incorporated on December 10, 2005, but which did not begin carrying on its business until December 31, 2005, nonetheless...
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| Tax Topics - Income Tax Act - Section 150 - Subsection 150(1) - Paragraph 150(1)(a) - Subparagraph 150(1)(a)(i) | initial period of years of inactivity does not suspend return-filing obligation | 28 |
Paragraph 249.1(1)(b))
Subparagraph 249.1(1)(b)(ii)
Administrative Policy
14 January 2011 Internal T.I. 2010-0383261I7 F - Fin d'exercice d'une société de personnes
The two 50% partners of a partnership (both individuals), transfer their respective interests on August 1 of Year 1 on a tax rollover basis to a...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 249.1 - Subsection 249.1(7) | CRA could under s. 249.1(7) authorize changed partnership year ends that did not extend beyond calendar year limitation in 249.1(1)(b)(ii) | 196 |
Paragraph 249.1(1)(d)
Articles
Lorenzo Bonanno, "Problems with Fiscal Period of Partnerships and Subsection 249.1(1)", Canadian Tax Focus (Canadian Tax Foundation), Vol. 12, No. 1, February 2022, p. 4
Partnership not permitted a 53-week year (p. 4)
- Unlike a corporation, which under s. 249.1(1)(a) is allowed to choose a 53-week fiscal period,...
Paragraph 249.1(1)(c)
Administrative Policy
18 August 2014 External T.I. 2014-0528001E5 - Fiscal period of a partnership
Partnership A, all of whose members are individuals who have elected under s. 249.1(4) since 1995 to have an off-calendar fiscal period end of...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 249.1 - Subsection 249.1(4) | corporate sub of upper-tier partnership is member of lower-tier partnership | 105 |
28 August 2012 External T.I. 2012-0454811E5 - Multi-tiered joint ventures
A corporation with a year end of March 31, 2011, is a participant in a joint venture ("JV1") with a fiscal period end of April 30, 2010. JV1, in...
13 March 2012 External T.I. 2012-0432111E5 - Revised joint venture policy
after adverting to the previous withdrawal of its position that joint venture income could be computed as if the joint venture had a separate...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(a) - Revising Claims | stub period CCA on transitioning away from JV CCA claims | 149 |
Subsection 249.1(2) - Not a member of a partnership
Administrative Policy
28 February 2012 External T.I. 2011-0424191E5 F - Fiscal period of a partnership
In the situation where a corporate general partner of the partnership has no entitlement in the particular year to profits of the partnership...
18 May 2004 External T.I. 2004-0069691E5 F - Incorporation des professionnels
The partners (all individuals) of a partnership (an SENC) carrying on a professional business each transferred their interest in the SENC to a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 98 - Subsection 98(3) - Paragraph 98(3)(b) | WIP subject to s. 34 election is tranferred at nil | 149 |
| Tax Topics - Income Tax Act - Section 34 | insolvency practice carried on by accountants does not qualify as accountancy | 79 |
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(a) - Subparagraph 40(2)(a)(ii) | only s. 40(2)(a)(ii)(A), not (B) or (C), is potentially engaged where transferor is individual | 125 |
Subsection 249.1(3)
Administrative Policy
13 January 2010 Internal T.I. 2009-0334931I7 F - Demande de changement d'exercice
The Directorate noted that since, under s. 249.1(3), “it is not possible to change the commencement date of a fiscal period without changing the...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 249.1 - Subsection 249.1(7) | floating fiscal year does not require CRA approval/retroactive change to previous year end to reduce s. 85(8) penalty not permitted | 287 |
29 May 2006 External T.I. 2005-0131701E5 F - Durée de l'exercice d'une société
Regarding a corporation's fiscal period that began on December 29, 1996 and ended on January 3, 1998, CRA stated:
[T]he corporation's fiscal...
Subsection 249.1(4) - Alternative method
Administrative Policy
20 February 2017 External T.I. 2014-0534341E5 F - Partnership change of fiscal period
An LP between two individuals has elected under s. 249.1(4) to have a non-calendar year end, say April 30, and now wishes to change to a September...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 249.1 - Subsection 249.1(7) | requirement for serious commercial reason for change in non-calendar year end | 80 |
18 August 2014 External T.I. 2014-0528001E5 - Fiscal period of a partnership
Partnership A, all of whose members are individuals who have elected under s. 249.1(4) since 1995 to have an off-calendar fiscal period end of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 249.1 - Subsection 249.1(1) - Paragraph 249.1(1)(c) | corporate sub of upper-tier partnership is member of lower-tier partnership | 131 |
4 May 2004 Internal T.I. 2004-0062671I7 F - Associé qui se joint à une société de personnes
A taxpayer departed a partnership in respect of which he had been annually deducting a reserve from income on December 31, 1995 to join another...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 34.2 - Old 34.2 | former s. 34.2(3) permitted the continuation of the former Dec. 31, 1995 professional income reserve on joining a similar partnership | 46 |
19 April 2004 External T.I. 2004-0063851E5 F - Année d'imposition du revenu d'entreprise
The individual, as a member of a partnership carrying on a business, had filed an election pursuant to s. 249.1(4) to have the fiscal period of...
5 June 2003 External T.I. 2002-0178485 - FISCAL PERIOD OF PROPRIETORSHIPS
Where a proprietorship has not filed an s. 249.1(4) election, the fiscal period of the business will always be from January 1 to December 31 of...
11 September 1996 External T.I. 9610575 - FISCAL PERIOD - CO-OWNERSHIP
Where the income from a rental property held in co-ownership by a corporation, an individual and a trust has been reported based on a June 30...
Paragraph 249.1(4)(b)
Administrative Policy
16 February 2005 External T.I. 2004-0097161E5 F - Fin d'exercice d'une société de personnes
Partnership A is owned by four partners who are all individuals. Partnership A operates four businesses, each with a separate place of business....
Subsection 249.1(7) - Change of fiscal period
Administrative Policy
7 October 2022 APFF Roundtable Q. 11, 2022-0942751C6 F - Changement de fin d'exercice et opposition
2020-0874951I7 indicated that if a request for a retroactive change to a taxation year is made after the corporate tax returns are filed but...
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| Tax Topics - Income Tax Act - Section 165 - Subsection 165(3) | CRA will not vacate an assessment that was not invalid or unfounded | 218 |
24 December 2020 Internal T.I. 2020-0874951I7 - Change to FPE for CEBA
After indicating that where a taxation year has already been assessed on the basis of a fiscal period end (“FPE”), the Act does not have any...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 249.1 - Subsection 249.1(1) | fiscal period is not set until assessed | 178 |
2017 Ruling 2016-0674681R3 - Sequential Split-Up Butterfly
Following a split up butterfly and winding-up of a corporation (DC1) for which DC2 had been a holding company, DC2 is held by three corporations,...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(1) - Distribution | sequential split-up butterfly with 1% tolerance, triggering of capital gains to generate CDA and RDTOH, and year end change to accommodate RDTOH division | 747 |
| Tax Topics - Income Tax Act - Section 129 - Subsection 129(1) | capital gain deliberately triggered to generate CDA and RDTOH addition and year end change granted to isolate dividend refund | 543 |
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(3.1) - Paragraph 55(3.1)(a) | sale of securities for cash proceeds that are reinvested, and tendering shares for shares of offeror | 58 |
20 February 2017 External T.I. 2014-0534341E5 F - Partnership change of fiscal period
Where a partnership between individuals has elected under s. 249.1(4) to have a non-calendar year end, say April 30, and now wishes to change to a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 249.1 - Subsection 249.1(4) | a partnership of individuals can change with CRA’s permission to a different non-calendar year end | 262 |
2015 Ruling 2015-0605901R3 F - Présomption de gain en capital
The proposed transactions contemplate (in para. 24) respecting a spin-off of real estate by Opco to newly-incorporated Realtyco that "Opco will...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(3.01) - Paragraph 55(3.01)(g) | separation of real estate assets beneath new holdco formed by unrelated shareholders | 567 |
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) - Subparagraph 55(3)(a)(ii) | spin-off of real estate beneath new common holdco of unrelated shareholders | 107 |
| Tax Topics - Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(b) | year end selection to avoid Pt. IV circularity | 97 |
9 December 2014 External T.I. 2014-0529311E5 - Change the fiscal period end of a partnership
A top-tier partnership, where the lower-tier partnerships have calendar fiscal periods as required by s. 249.1(1)(c), will have a loss from a...
14 January 2011 Internal T.I. 2010-0383261I7 F - Fin d'exercice d'une société de personnes
The two 50% partners of a calendar-year partnership (both individuals), transfer their respective interests on August 1 of Year 1 on a tax...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 249.1 - Subsection 249.1(1) - Paragraph 249.1(1)(b)) - Subparagraph 249.1(1)(b)(ii) | s. 249.1(1)(b)(ii) trumps CRA discretion under s. 249.1(7) | 212 |
13 January 2010 Internal T.I. 2009-0334931I7 F - Demande de changement d'exercice
Must a corporation, having a floating year-end (e.g., the fiscal period ending on the Sunday closest to December 31), seek approval under s....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 249.1 - Subsection 249.1(3) | requested change to commencement of fiscal period entailed a change to the previous year end | 63 |
Subsection 249.1(8) - Single-tier fiscal period alignment
Administrative Policy
8 March 2012 External T.I. 2011-0429481E5 - Single-tier alignment conditions
s. 249.1(8) requires that the particular day that may be elected to end the fiscal period of a partnership must be after March 22, 2011 and before...
Subsection 249.1(10) - Conditions to align a partnership fiscal period
Administrative Policy
24 April 2012 External T.I. 2012-0444451E5 - Multi-tier alignment election
Where three corporations with calendar year-ends were members of Partnership X with a calendar fiscal period end, and one of the corporations and...