15 June 2022 STEP Roundtable Q. 3, 2022-0924801C6 - Electing Contributor and Electing Trust -- summary under Electing Contributor

Can the election described in the s. 94(1) definition of “electing contributor” be late-filed?

The election is made in respect of a particular year of the contributor – which we will call the “initial year” because it is. CRA indicated that in order for the election to be effective for the initial year that the election is to take effect (the “initial year”) (in which event, it will continue to apply for all subsequent taxation years), the election must be filed in writing on or before the filing due date of the contributor for the initial year - even if the contributor filed that individual's personal income tax return after such due date. Furthermore, this election is not listed in Reg. 600, so that CRA does not have discretion to allow a late-filing of the election.

If the contributor misses this deadline for a particular year, this does not preclude the contributor from filing this election for a subsequent taxation year, which would then become the initial year.

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