Line 079 - If an election was made under section 261

Line 079 - If an election was made under section 261

If the return is not reported in Canadian currency, indicate the functional currency used.

Corporations resident in Canada throughout the tax year can elect to report in a functional currency, except for:

• investment corporations

• mortgage investment corporations

• mutual fund corporations

A functional currency is a currency of a country other than Canada that is both:

• a qualifying currency (currently, the British pound, the euro, the Australian dollar, the U.S. dollar, and the Japanese yen)

• the primary currency in which the taxpayer keeps its records and books of account for financial reporting purposes for the tax year

To elect to report in a functional currency, file Form T1296, Election, or Revocation of an Election, to Report in a Functional Currency, within the first 61 days of the tax year to which the election applies.

You cannot change functional currency. If you cease to qualify as a functional currency reporter, you must revert to determining your Canadian tax results in Canadian dollars. You cannot make the election again.

For more information, go to canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/functional-currency or read Income Tax Folio S5-F4-C1, Income Tax Reporting Currency, at canada.ca/cra-income-tax-reporting-currency.

References
Section 261
S5-F4-C1, Income Tax Reporting Currency

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