6 July 2004 External T.I. 2004-0081631E5 F - Price Adjustment Clauses -- summary under Subsection 85(1)

CRA will accept a rollover form filed with a "yes" answer to the question concerning the existence of a price adjustment clause as sufficient notice of a price adjustment clause. However, in order to give effect to a price adjustment clause, the parties will be required to file an amended election under s. 85(7.1) and pay the penalty under s. 85(8). Essentially the same considerations apply to a s. 97(2) election.