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 testamentary trust),
(i.1) a fiscal period of an inter vivos trust (other than a fiscal period to which paragraph 132.11(1)(c) applies),
(ii) a partnership of which
(A) an individual (other than a testamentary trust or an individual to whom section 149 or 149.1 applies),
(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, is a prescribed business or is carried on by a prescribed person or partnership,
(c) 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.
Marginal note: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.
Marginal note: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.
Marginal note: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 testamentary trust,
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 of income under Part I, for the taxation year that includes the first day of the first fiscal period of the business that begins after 1994, and
(d) in the case of an individual who is a member of a partnership a member of which is a testamentary trust, 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 earliest of the filing-due dates of the members of the partnership for a taxation year that includes the first day of the first fiscal period of the business that begins after 1994.
Marginal note:Alternative method not applicable to tax shelter investments
(5) Subsection 249.1(4) does not apply to a particular fiscal period of a business where, in a preceding fiscal period or throughout the period of time that began at the beginning of the particular period and ended at the end of the calendar year in which the particular period began, the expenditures made in the course of carrying on the business were primarily the cost or capital cost of tax shelter investments (as defined in subsection 143.2(1)).
Marginal note:Revocation of election
(6) Subsection 249.1(4) does not apply to fiscal periods of a business carried on by an individual that begin after the beginning of a particular taxation year of the individual where
(a) an election in prescribed form to revoke an election filed under subsection 249.1(4) in respect of the business is filed with the Minister; and
(b) the election to revoke is filed
(i) in the case of an individual
(A) who is not a member of a partnership, or
(B) who is a member of a partnership no member of which is a testamentary trust,
by the individual on or before the individual’s filing-due date, and with the individual’s return of income under Part I, for the particular taxation year, and
(ii) in case of an individual who is a member of a partnership a member of which is a testamentary trust, by the individual on or before the earliest of the filing-due dates of the members of the partnership for a taxation year that includes the first day of the first fiscal period of the business that begins after the beginning of the particular year.
Marginal note:Change of fiscal period
(7) No change in the time when a fiscal period ends may be made for the purposes of this Act without the concurrence of the Minister.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 1996, c. 21, s. 61
- 1998, c. 19, s. 240
- 1999, c. 22, s. 81
- 2001, c. 17, s. 189
- Date modified: