Is the long-term project election under s. 13(29 required to be filed only once? The Directorate concluded:
The Long-Term Project Election is required to be filed by a taxpayer only once, with its return for the taxation year that is referred to as the “particular year” in subsection 13(29), which would generally be the third taxation year of the project (assuming the taxpayer first acquired property that is part of the project in its first taxation year of the project).
In explaining, the Directorate stated:
Generally, the “particular year” will be the third taxation year of the project. The mid-amble of subsection 13(29) … clearly indicates that the taxpayer must file a single election with its return for the “particular year” … .
Once the Long-Term Project election has been filed with its return for the particular year, subsection 13(29) will apply in respect of the taxpayer’s “inclusion year” … [which g]enerally … will be the third and subsequent taxation years of the project where the taxpayer owns project property in that taxation year that has not yet otherwise become available for use. …
… The … current … Form T1031 suggests that the form must be filed annually. … Form T1031 is currently under review.