An s. 216 election must be made by filing a special income tax form T1159 within either 6 months or 24 months of the end of the year (6 months if form NR6 is filed to reduce withholding tax remittances). Does CRA have an administrative approach to allow for late filing (for example a voluntary disclosure process) and what are the conditions?
CRA indicated that it has a policy allowing non-residents a one-time opportunity to late -file their s. 216 returns and have them treated as though they were filed on time. A late-filed s. 216 return will not be accepted under this policy where: CRA has already advised the taxpayer of their responsibilities under Part XIII in respect of rental income or timber royalties earned in Canada; CRA has already initiated action because of the failure to comply with Part XIII; or the taxpayer has submitted, and CRA has approved, Form NR6.
Where a taxpayer is not eligible for relief under this policy, it may be possible to get an extension, in respect of a s. 216 return, where the taxpayer can sufficiently demonstrate that circumstances of an extraordinary manner existed. Further information is at Subsection 216(1) Late-Filing Policy.