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 period can run from December 29, 1996 to January 3, 1998 - a period not exceeding 53 weeks - and … the subsequent fiscal period of the corporation's business or property begins on January 4, 1998. …
[S]ubsection 249(3) does not affect the length of the fiscal period of a corporation's business or property. Instead, the deeming rule in subsection 249(3) has certain consequences, including the following:
- An unpaid amount that is otherwise subject to the provisions of subsection 78(4) must be paid no later than 180 days after the deemed year-end determined under subsection 249(3);
- The tax return will be required to be filed within six months of December 31, 1997;
- Subsection 15(2.6) requires that a loan to a shareholder made on January 3, 1998, be repaid on or before December 31, 1998 rather than January 3, 1999 in order to avoid including the debt in the shareholder's income for 1998.