This form allows corporations to make an election to apply the mark-to-market method in the evaluation of all their eligible derivatives or to ask the minister to revoke such an election. Under this method, unrealized gains and losses on derivatives are accrued at the end of a taxation year even though the derivatives will not be settled until after the end of the taxation year. In order for the election to apply to this taxation year and all subsequent taxation years (unless it is revoked by the corporation with the consent of the minister) this election must be made on or before the filing deadline of the T2 return.
To correctly complete Form T217 and retain the data entered at the time the form was printed, proceed as follows:
- Complete Form T217 by selecting either the election box in Part 2 or the election revocation box in Part 3.
- Print Form T217 by using the Print Form (Crtl+P) command and mail a duly signed copy, separately from any other return, to the corporation’s tax centre. The Form completed custom check box will be automatically selected after the form is printed.
When the corporation has a permanent establishment in Québec, you must also inform Revenu Québec that the election or revocation of the election has been made by sending a written notification, along with the T217 form that was filed with the CRA, on or before the 30th day following that on which the election or revocation of the election is made.
The selection of the Form completed custom check box allows for retaining the signature date entered in either Part 2 or Part 3, as applicable, as it appears on the form after it is printed to file it with the CRA.
Note: Data in Form T217 is not included in the T2 Bar Codes Return and is not sent to the CRA when the return is filed electronically.
The question Did the corporation make its first election in a prior taxation year? is used to determine if line 200 should be completed. When the election is made in a taxation year, Form T217 is applicable, and the custom check box Form completed is selected, the answer to the question will be “Yes” following the roll forward of the client file for all subsequent taxation years.
The answer to the question Has the corporation made an election under subsection 10.1(1) ITA in the current taxation year or in a prior taxation year and this election has not been revoked? will default to “Yes” when Form T217 is applicable in the current taxation year, as a result of an election under subsection 10.1(1) ITA and the custom check box Form completed is selected.
When rolling forward the client file, this value will be retained for subsequent taxation years. When Form T217 becomes applicable in a subsequent taxation year because the corporation requests the revocation of the election under subsection 10(2) ITA (Part 3 of the form), the answer will then default to “No” upon rolling forward the client file for the year in question.