Section 264 — Income Tax Act: Designation of account

Subject to subsection (2), a reporting Canadian financial institution may designate a financial account to not be a U.S. reportable account for a calendar year if the account is a preexisting individual account described in paragraph A of section II of Annex I to the agreement; a new individual account described in paragraph A of section III of Annex I to the agreement; a preexisting entity account described in paragraph A of section IV of Annex I to the agreement; or a new entity account described in paragraph A of section V of Annex I to the agreement. A reporting Canadian financial institution may not designate a financial account for a calendar year unless the account is part of a clearly identifiable group of accounts all of which are designated for the year. The rules in paragraph C of section VI of Annex I to the agreement apply in determining whether a financial account is described in any of paragraphs (1)(a) to (d).