Income Tax Regulations — 5901
corporation” were a reference to “any corporation other than a corporation resident in Canada” and that is, at that time, related to the corporation, (A) where there is no such other corporation, elects in writing under this subparagraph and files the election with the Minister on or before the filing-due date for its taxation year in which the whole dividend is paid, and (B) in any other case, jointly elect in writing under this subparagraph and file the election with the Minister on or before the earliest of the filing-due dates for their taxation years in which the whole dividend is paid, (ii) no shareholder of the affiliate is, at that time, a partnership a member of which is (A) a corporation that would, in the absence of this subparagraph, be eligible to elect under subparagraph (i), or (B) a foreign affiliate of such a corporation, and (iii) no particular person or particular partnership — in respect of which the affiliate would, at that time, be a foreign affiliate if paragraph (b) of the definition equity percentage in subsection 95(4) of the Act were read in the manner required by subparagraph (i) — has elected under subsection 90(3) of the Act in respect of the distribution that is the whole dividend where (A) in the case of a particular person, the particular person is, or is at that time related to, the corporation, or (B) in the case of a particular partnership, a member of the particular partnership is, or is at that time related to, the corporation. (2.1) Subsection (2.2) applies if, in respect of a whole dividend paid by a foreign affiliate of a corporation resident in Canada, (a) the corporation determined not to make an election under subparagraph (2)(b)(i) in respect of the whole dividend before the filing-due date specified in the relevant clause of that subparagraph; (b) the corporation demonstrates that the determination was made using reasonable efforts; and (c) the corporation, whether jointly with one or more other corporations or otherwise, files such an election on or before the day that is 10 years after that filing-due date. (2.2) If this subsection applies and, in the opinion of the Minister, the circumstances are such that it would be just and equitable to permit an election referred to in subsection (2.1) to be filed after the filing-due date specified in the relevant clause of subparagraph (2)(b)(i), that election is deemed to have been filed on that filing-due date. (3) Notwithstanding subsections (1) and (2), for the purposes of the definitions exempt deficit , exempt surplus , taxable deficit and taxable surplus in subsection 5907(1), any amount designated pursuant to subsection 5900(2) in respect of a dividend paid by a foreign affiliate of a corporation resident in Canada increases the portion of the whole dividend deemed to have been paid out of the affiliate’s taxable surplus in respect of the corporation and decreases the portion of the whole dividend deemed to have been paid out of the affiliate’s exempt surplus in respect of the corporation. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 79(F); SOR/97-505, s. 3; 2013, c. 34, s. 79