5-903103
R.D. Mundell
(613) 952-0243
19(1)January 14, 1990
Dear Sir:
This is in reply to your letter of October 31, 1990 requesting a technical interpretation of the timing of the election referred to in subsection 12(8) of the Income Tax Act (the "Act"). More specifically, you have asked whether a taxpayer can amend a prior year's tax return and elect in the amended return.
Subsection 12(8) of the Act provides for an election to be made by a taxpayer in the return of income for a taxation year without any prescribed form or manner for making the election. It is the Department's position that the election should take the form of a letter attached to the return for the year in which the election is made. As the reference is to the return for the year, it is our position that the election should be filed in the original return and not in an amended return. In the absence of a letter or some positive evidence in the return that the election is being made, the Department will not accept that a valid election has been made unless the taxpayer's actions clearly indicate the intention to have the elective provision apply.
In answer to your specific question regarding amended returns, the Department is not required to accept an amended return and if it is evident that tax planning is involved, it is our position that the amended return would not be accepted. We suggest you discuss the facts of your clients particular circumstances with personnel at the Windsor District Taxation Office.
We trust this will be of assistance.
Yours truly,
for Director Business and General Division Rulings Directorate Legislative and Intergovernmental Affairs Branch
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