Where the parties to a s. 85 rollover transaction have different tax reporting currencies (as defined in s. 261(1)), in what currency should the amounts be reported on the form T2057? should be denominated in the transferor’s elected functional currency?
CRA responded that it would require that two separate forms T2057 be filed. The amounts would be reported and denominated in the transferor’s tax reporting currency on the first form T2057, and in the transferee’s tax reporting currency on the second T2057.