Section 217.2 — Excise Tax Act: Election

A qualifying taxpayer that is resident in Canada may elect to determine tax under section 218.01 in accordance with paragraph 218.01(a) and tax under subsection 218.1(1.2) in accordance with paragraph 218.1(1.2)(a) for each specified year of the qualifying taxpayer during which the election is in effect. An election made under subsection (1) by a qualifying taxpayer shall be made in prescribed form containing prescribed information; set out the first specified year of the qualifying taxpayer during which the election is to be in effect; specify if subparagraph 217.1(4)(a)(iii) is to apply in all cases in determining the internal charges for all specified years of the qualifying taxpayer during which the election is to be in effect;

and be filed with the Minister in prescribed manner on or before the day on or before which the qualifying taxpayer’s return under section 219 in respect of tax under section 218.01 or subsection 218.1(1.2) for the first specified year is required to be filed. An election made under subsection (1) by a qualifying taxpayer shall become effective on the first day of the specified year set out in the form. An election made under subsection (1) by a qualifying taxpayer ceases to have effect on the earlier of the first day of the specified year of the qualifying taxpayer in which the qualifying taxpayer ceases to be resident in Canada; and the day on which a revocation of the election becomes effective. A qualifying taxpayer that has made an election under subsection (1) may revoke the election, effective on the first day of a specified year of the qualifying taxpayer that begins at least two years after the election became effective, by filing in prescribed manner with the Minister a notice of revocation in prescribed form containing prescribed information not later than the day on which the revocation is to become effective. If a revocation of an election made under subsection (1) becomes effective on a particular date, any subsequent election under that subsection is not a valid election unless the first day of the specified year set out in the subsequent election is at least two years after the day on which the revocation became effective.