Income Tax Act — I-3.3 249.1
Definition of fiscal period 249.1 (1) For the purposes of this Act, a fiscal period of a business or a property of a person or partnership means the period for which the person’s or partnership’s accounts in respect of the business or property are made up for purposes of assessment under this Act, but no fiscal period may end (a) in the case of a corporation, more than 53 weeks after the period began, (b) in the case of (i) an individual (other than an individual to whom section 149 or 149.1 applies or a trust), (i.1) a trust (other than a mutual fund trust if the fiscal period is one to which paragraph 132.11(1)(c) applies or a graduated rate estate), (ii) a partnership of which (A) an individual (other than an individual to whom section 149 or 149.1 applies or a graduated rate estate), (B) a professional corporation, or (C) a partnership to which this subparagraph applies, would, if the fiscal period ended at the end of the calendar year in which the period began, be a member of the partnership in the period, or (iii) a professional corporation that would, if the fiscal period ended at the end of the calendar year in which the period began, be in the period a member of a partnership to which subparagraph 249.1(1)(b)(ii) applies, after the end of the calendar year in which the period began unless, in the case of a business, the business is not carried on in Canada, (c) in the case of a partnership (other than a partnership to which subparagraph (b)(ii) or subsection (9) applies) that is a member of a partnership or has a member that is a partnership, after the end of the calendar year in which it began, if at the end of the calendar year (i) a corporation has a significant interest, as defined in section 34.2, in the partnership, (ii) the partnership is a member of another partnership in which a corporation has a significant interest as defined in section 34.2, (iii) a membership interest in the partnership is held directly, or indirectly through one or more partnerships, by a partnership described in subparagraph (i) or (ii), or (iv) the partnership holds directly, or indirectly through one or more partnerships, a membership interest in a partnership described in any of subparagraphs (i) to (iii), or (d) in any other case, more than 12 months after the period began, and, for the purpose of this subsection, the activities of a person to whom section 149 or 149.1 applies are deemed to be a business. Not a member of a partnership (2) For the purpose of subparagraph 249.1(1)(b)(ii) and subsection 249.1(4), a person or partnership that would not have a share of any income or loss of a partnership for a fiscal period of the partnership, if the period ended at the end of the calendar year in which the period began, is deemed not to be a member of the partnership in that fiscal period. Subsequent fiscal periods (3) Where a fiscal period of a business or a property of a person or partnership ends at any time, the subsequent fiscal period, if any, of the business or property of the person or partnership is deemed to begin immediately after that time. Alternative method (4) Paragraph 249.1(1)(b) does not apply to a fiscal period of a business carried on, throughout the period of time that began at the beginning of the fiscal period and ended at the end of the calendar year in which the fiscal period began, (a) by an individual (otherwise than as a member of a partnership), or (b) by an individual as a member of a partnership, where throughout that period (i) each member of the partnership is an individual, and (ii) the partnership is not a member of another partnership, where (c) in the case of an individual (i) who is referred to in paragraph 249.1(4)(a), or (ii) who is a member of a partnership no member of which is a graduated rate estate, an election in prescribed form to have paragraph 249.1(1)(b) not apply is filed with the Minister by the individual on or before the individual’s filing-due date, and with the individual’s return