Who can apply

Situations that may qualify

The Canada Revenue Agency (CRA) may accept your request in the following situations:

The late, amended, or revoked election must be correct in law based on the relevant legislation in place for the applicable tax year to which the election relates
There have been tax consequences that you did not intend and there is evidence you took reasonable steps to comply with the law
A late request due to circumstances beyond your control, for example:
- Natural or human-caused disasters, such as a flood or fire
- Civil disturbances or disruptions in services, such as a postal strike
- A serious illness or accident
- Serious emotional or mental distress, such as a death in the immediate family
It is evident you acted on incorrect information given by the CRA, such as an incorrect written reply to your question or an error in a CRA publication
The request results from a mechanical error which could include using the net book value amount when you meant to use the undepreciated capital cost. The later accounting of the transactions by all parties is as if the election had been made
You can show that you were not aware of the election provisions, even though you took a reasonable amount of care to comply with the law, and took action to correct the situation as quickly as possible

The CRA will not accept a request in the following instances:

It is reasonable to conclude you made the request for retroactive tax planning purposes, for example, taking advantage of changes to the law enacted after the due date of the election
Adequate records do not exist
It is reasonable to conclude you had to make the request because you were negligent or careless in complying with the law