The CRA has issued Policy Statement P-255, “Late-filed Section 156 Elections and Revocations”, which provides information on when the CRA will consider accepting a late-filed election or revocation of an election for nil consideration.
Requests for late-filed elections may be considered by the CRA on a case-by-case basis, subject to being made in proper form. Among other conditions, the request must:
- be made in writing and not submitted electronically;
- state a clear reason for the delay;
- provide an undertaking that the first specified member (who must sign the request) will notify other members whether or not the request is accepted by the CRA;
- indicate that all specified members meet the usual conditions for the election (i.e., they are registrants and closely related); and
- include a statement confirming that both parties have acted as if the election or revocation was in effect, as of the requested effective date.
The policy statement also provides further discussion and includes an example to illustrate the CRA’s position.