After indicating that the s. 134.2 election affects only the electing corporation's current taxation year and has no effect on its "fiscal period,” the Directorate stated:
Thus, if Canco has a fiscal period ending November 30, 2002, and elects pursuant to subsection 134.2 with an effective date of October 31, 2002, the following consequences will result:
(a) Deemed taxation year-end of October 30, 2002 pursuant to paragraph 134.2(2)(a);
(b) Start of a new taxation year deemed to begin on October 31, 2002 pursuant to paragraph 134.2(2)(b);
(c) The new taxation year deemed to begin on October 31, 2002 will end on November 30, 2002, in accordance with the fiscal period elected by the corporation pursuant to section 249.1; and
(d) If the corporation fails to change the date of its fiscal period pursuant to subsection 249.1(7), its taxation years subsequent to the one ended November 30, 2002 will begin on December 1 and end on November 30.