7 October 2011 APFF Roundtable Q. 23, 2011-0412111C6 F - Validity of Price Adjustment Clause -- summary under Subsection 85(7.1)

At the 2007 APFF Roundtable, CRA stated:

It appears to us that the validity of a price adjustment clause does not depend on the filing of an amended election (on prescribed form T2057) pursuant to subsection 85(7.1) of the ITA.

In confirming this position, CRA stated:

Despite the fact that paragraph 26 of Information Circular 76-19R3 has not yet been amended, our position that the validity of a price adjustment clause does not depend on the filing of an amended election (on prescribed form T2057) pursuant to subsection 85(7.1) of the ITA is still in effect.

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