Foreign spin-offs - Extension under the fairness provisions of the Income Tax Act

A legislative amendment to the Income Tax Regulations extends the application of the fairness provisions to the election that allows a tax deferral of eligible distributions of foreign spin-off shares. Among other things, the fairness provisions give the Minister of National Revenue and her delegated officials discretion to allow late and amended elections, or to revoke them, for tax years dating back to 1985.

Section 600 of the Regulations has been amended to add paragraph 86.1(2)(f) to the list of elections set out in paragraph 600(c). As a result, the Minister of National Revenue may, under the fairness provisions of subsection 220(3.2) of the Income Tax Act, extend the time for making the election for a tax deferral of eligible distributions of foreign spin-off shares.

For more information

• Fairness provisions
• IC92-1, Guidelines for accepting late, amended, or revoked elections