| January 11, 1990 | |
| Trust and SER Assessing Section | Specialty Rulings |
| Returns Processing Division | M. Vallée |
| 957-2093 | |
| D.I. Wyse | |
| Chief | |
| File No. 7-4584 |
Subject: Due Date for Form T2059 - Subsection 96(4) of the Income Tax Act (the "Act") Your file HAV 4533-3-18 PC J1211-1
This is in reply to your memorandum dated December 13, 1989, whereby you request our opinion regarding the due date for making an election pursuant to subsection 97(2) of the Act, as determined by subsection 96(4) of the Act in the following situation.
Four taxpayers have elected under subsection 97(2) of the Act in respect of property transferred to a Canadian partnership. The taxpayer and all the other members of the partnership are corporations and, with the exception of one partner who has an October 31 year end, all have December 31 year ends. The transfer of the property took place on October 5, 1988; form T2059 was filed on June 30, 1989.
You are of the opinion that the earliest due date for filing form T2059 was April 30, 1989, since one of the transferee partners 24(1) has an October 31 year end.
We agree with your opinion. Subsection 97(2) of the Act provides that an election must be filled jointly by the transferor taxpayer "and all other members of the partnership... within the time referred to in subsection 96(4) ...". Subsection 96(4) of the Act provides that an election under subsection 97(2) must be filed on or before the earliest of the days of which any taxpayer making the election is required to file a return of income pursuant to section 150. Consequently, since 24(1) is a taxpayer that is making an election under subsection 97(2) of the Act, the election should have been filed on or before April 30, 1989.
We are returning your orange file.
ChiefCorporate Reorganizations I SectionReorganizations and Non-Resident DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch