Lines 060, 061, 063, 065 - To which tax year does this return apply?

Lines 060, 061, 063, 065 - To which tax year does this return apply?

Specify hours and minutes

When using Corporation Internet Filing, you can now specify hours and minutes in the tax year-end (TYE) at line 061 when the TYE has changed for any of the following reasons (you answered yes at the line number in brackets):

• acquisition of control under subsection 249(4) when electing not to apply subsection 256(9) (line 063)

• change to the TYE when changing from a Canadian- controlled private corporation to another type of corporation under subsection 249(3.1) (line 066)

• first year after amalgamation (line 071)

• final year before amalgamation (line 076)

  Note
  You can also specify hours and minutes in the tax year start (TYS) at line 060 when the TYE in the prior year had specified hours and minutes (you answered yes at any of the above line numbers in brackets in the current TYE or answered yes at line 063 or 066 in the prior TYE).

You can also specify hours and minutes in the date entered at line 065, which is the date of the acquisition of control resulting in the application of subsection 249(4).

Time is to be reported by the 24-hour clock. You do not need to specify the hours and minutes if the time of the TYS is 00:00 or the TYE is 23:59 (11:59 pm). For CRA purposes, the beginning of a day is 00:00 and the end of a day is 23:59.

Hours and minutes should only be entered when the event results in the corporation (or successor) starting a tax year on the same day the previous tax year ends. In the following example, see how to report hours and minutes for a multiple amalgamation on the same day.

Example

Two predecessor corporations amalgamate (yes at line 076) on January 15, 2024, at 09:44. Both have a TYS of January 1, 2024.

Both predecessors will report:

• line 060 (TYS) as 2024-01-01 00:00

• line 061 (TYE) as 2024-01-15 09:43

The new corporation (yes at line 071) is also a final to amalgamation (yes at line 076) on January 15, 2024, with its final to amalgamation taking place at 17:27.

The new/predecessor corporation will report:

• line 060 (TYS) as 2024-01-15 09:44

• line 061 (TYE) as 2024-01-15 17:26

Lines 060 and 061 - Tax year start and tax year-end

The corporation's tax year is its fiscal period. A fiscal period cannot be longer than 53 weeks (371 days).

In the spaces provided, enter the first and last days of the tax year. If the particular time of day applies, enter the hours and minutes to specify the time. The first day of this tax year has to be the day after the last day of the previous tax year. You have to file a return for every calendar year.

A new corporation may choose any tax year-end as long as its first tax year does not exceed 53 weeks from the date it was either incorporated or formed as a result of an amalgamation.

Make sure the financial statements or the General Index of Financial Information (GIFI) you attach to the return match the tax year of the return.

Generally, unless you have received approval to change the fiscal period, the corporation's fiscal period is the same from year to year. To change a fiscal period, write a letter to your tax services office asking for approval and include details to explain the reasons for the change as well as its effective date. If you do not include these details, the processing of your request may be delayed.

In some situations, you do not need approval to change the fiscal period. These situations include any of the following:

• the corporation has wound-up and you are filing its final return with an abbreviated fiscal period

• the corporation has to end its tax year at a certain time because it is emigrating to another country, becoming exempt from tax, or ceasing to be exempt from tax

• a person or group of persons acquired control of the corporation under subsection 249(4)

• the corporation becomes or ceases to be a Canadian- controlled private corporation

  Note
  A corporation that becomes bankrupt must get CRA's approval to change its fiscal period.

References
IT-364, Commencement of Business Operations
IT-454, Business Transactions Prior to Incorporation

Lines 063 and 065 - Has there been an acquisition of control resulting in the application of subsection 249(4) since the tax year start on line 060?

If you answer yes, enter on line 065 the date the control was acquired.

There is an acquisition of control when, during the tax year, a person or group of persons acquired control of the corporation.

When control is acquired, subsection 249(4) provides that the tax year of the corporation ends immediately before that control is acquired. You do not need approval for the changed tax year.

File a return for the tax year that ends immediately before control is acquired. The next tax year starts at the time control is acquired, and the corporation can choose any tax year-end within the next 53 weeks.

If control is acquired up to seven days after the end of an established tax year, generally a corporation can choose to extend the tax year up to the time control is acquired. In this case, attach a letter to your return that says you are making an election under paragraph 249(4)(b).

Where shares of a corporation are transferred to an estate because of a death, there is no acquisition of control. In general, this also applies when the transfer is made to a related person. As a result, there is no deemed tax year-end and no tax return is required to be filed. For more information, see subsection 256(7).

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