S. 164(6) requires that there be a disposition within the first taxation year of the graduated rate estate. Would CRA be prepared to recommend and work with the Department of Finance to offer affected taxpayers more relieving conditions in utilizing s. 164(6), for example, an expanded 3 year limitation could be introduced along with an elective disposition rather than an actual disposition? CRA stated:
CRA has the authority [under Reg. 600(b)] to accept a late filed subsection 164(6) election, should it agree to do so. It should be noted that this does not change the requirement that the losses to which this election applies must have been incurred in the first taxation year of the estate.
… Any proposed changes to tax policy or amendments to legislation, such as that suggested in the Joint Committee submission, are the purview of the Tax Policy Branch at Finance.
Accordingly, CRA is prepared to work with Finance should they seek our views on this issue.