Income Tax Act — I-3.3 18.21
A taxpayer and each corporation or trust that is, throughout the relevant period, an eligible group entity in respect of that taxpayer and a member of the same consolidated group as the taxpayer (the taxpayer and each of the corporations or trusts being referred to in this subsection and subsection (4) as a “Canadian group member”) may, if the taxpayer is a taxpayer described in subsection (7), elect, and otherwise jointly elect in respect of their taxation years ending in the relevant period (each referred to in this subsection and subsection (4) as a “relevant taxation year”) to allocate amounts in respect of each relevant taxation year and the amount allocated to a member for a relevant taxation year is the amount determined in respect of that member for that relevant taxation year for the purposes of this section and subsection 18.2(2), if (a) the consolidated financial statements of the consolidated group for the relevant period are audited financial statements; (b) the election or amended election (i) specifies the amount allocated to each Canadian group member for each relevant taxation year, and (ii) is filed with the Minister by the taxpayer or a Canadian group member of the taxpayer on or before (A) the latest filing-due date of a Canadian group member for a relevant taxation year, or (B) the day that is 90 days after the sending of (I) a notice of assessment of tax payable under this Part by a Canadian group member for a relevant taxation year, or (II) a notification that no tax is payable under this Part by a Canadian group member for a relevant taxation year; (c) the total of all amounts, each of which is an amount allocated to a Canadian group member for a relevant taxation year, does not exceed the least of (i) the total of all amounts in respect of a member each of which is determined by the formula A × B where A is the group ratio of the consolidated group for the relevant period, and B is the adjusted taxable income of the member for each relevant taxation year, (ii) the group net interest expense of the consolidated group in respect of the relevant period, and (iii) the total of all amounts, each of which would, in the absence of section 257, be the adjusted taxable income of a member for each relevant taxation year; (d) an amended election has not been filed in accordance with this section; and (e) where the election is an amended election, (i) the following conditions are met: (A) in the absence of any assessment, the condition set out in paragraph (c) would be met in respect of a prior election under this subsection made by the Canadian group members for a relevant taxation year under this subsection, and (B) subsection 18.2(9) does not apply to a tax benefit in respect of a prior election for the relevant period, or (ii) the Minister grants permission to amend the prior election under subsection (3). Late or amended election (3) The Minister may extend the time for making an election or grant permission to amend or revoke an election under subsection (2) if (a) the Canadian group members demonstrate to the satisfaction of the Minister that (i) they made reasonable efforts to determine all amounts that may reasonably be considered relevant in making the election, and (ii) the election or amended election, as the case may be, is filed as soon as circumstances permit; and (b) in the opinion of the Minister, the circumstances are such that it would be just and equitable to permit the election to be made, amended or revoked. Fair value adjustments — election (4) For the purposes of calculating group adjusted net book income, the following rules apply: (a) no amounts may be included in paragraph (d) of the description of F or in the description of K in the definition group adjusted net book income for any relevant period unless the Canadian group members jointly elect, for the first relevant taxation year in respect of which the Canadian group members jointly elect under subsection (2), to include net fair val