Definition of time periods created by election/revocation of election to change fiscal years

From: Canada Revenue Agency

Please note that the following Policy Statement, although correct at the time of issue, may not have been updated to reflect any subsequent legislative changes.

GST/HST Policy Statement P-068

Date of Issue

May 25, 1993

Subject

Definition of time periods created by election/revocation of
election to change fiscal years.

Legislative Reference(s)

Subsection 123(1) and section 244 of the Excise Tax Act.

National Coding System File Number(s)

11695-6

Effective Date

January 1, 1991

Text

When a registrant changes its fiscal year by electing under section 244 of the Excise Tax Act or when an election under section 244 is revoked, time periods are created which must be dealt with. This policy defines those periods for administrative purposes.

1. The time period between the date on which a fiscal year begins and the date on which a fiscal year elected under the provisions of section 244 of the Excise Tax Act begins will be considered to be a fiscal year.

2. The time period between the date on which a fiscal year begins and the effective date on which the election under section 244 is revoked will also be considered to be a fiscal year.

 

SAMPLE RULINGS

Example 1

Statement of facts

On July 31, 1992, a registrant who is an individual elects to change to a fiscal year of August 1 through July 31.

The registrant, at that time, had a fiscal year which was a calendar year.

The registrant is a quarterly filer, whose fiscal months are calendar months.

Rulings requested

What is the schedule of GST returns required from this registrant? When will the change be effective?

Ruling given

The change to the fiscal year is effective August 1, 1992. The period January 1, 1992 to July 31, 1992 would be defined as a fiscal year and therefore reporting periods would end on March 31, 1992, June 30, 1992 and July 31, 1992.

Reporting periods for the new fiscal year commencing August 1, 1992 through July 31, 1993, would end on October 31, 1992, January 31, 1993, April 30, 1993 and July 31, 1993.

Example 2

Statement of facts

A registrant wants to elect to move from a fiscal year of June 14 to June 13, to a calendar year. This registrant is a corporation and files monthly with each fiscal month ending on the 13th of the month.

Ruling requested

When must the registrant file an election to have it effective for 1994? What are its reporting period ends?

Ruling given

This registrant must file its election on or before January 1, 1994, for the election to be effective commencing January 1, 1994. It will have a fiscal year of June 14, 1993 to December 31, 1993. Subsequent fiscal years will run January 1 through December 31 unless the election is revoked.

Reporting periods in 1993 will be as per the fiscal month schedule except for December. The last fiscal month in December will begin December 14 and end December 31. Unless otherwise notified, beginning January 1, 1994, the reporting period ends will be the last day of each calendar month.

 

Example 3:

Statement of facts

A registrant files an election form on January 10, 1993, to move from a fiscal year of June 14 to June 13, to a calendar year. This registrant is a corporation and files monthly with each fiscal month ending on the 13th of the month.

Ruling requested

When will the election be effective? What are its fiscal years for this changeover period?

Ruling given

The election will be effective commencing January 1, 1994. It will have a fiscal year of June 14, 1993 to December 31, 1993. Subsequent fiscal years will run January 1 through December 31 unless the election is revoked.

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