In 2014-0521541I7, the CRA discussed previously inconsistent administrative positions they had taken regarding the requirement for Crown or Crown-owned corporations to file T2’s, and responded to an inquiry as to whether this exemption extended to wholly-owned subsidiaries of corporations owned by the Crown.

The CRA discussed a discrepancy between their webpage “Corporation Income tax Return”, which stated that Crown corporations were exempt from filing T2 returns, and the T2 Guide, which stated that provincial Crown corporations were exempt. The CRA noted that subsection 27(2) excludes paragraphs 149(1)(d) to (d.4) (the tax-exemption provisions for corporations owned by the Crown in various ways) from applying to the prescribed federal Crown corporations enumerated in regulation 7100.

The CRA did not comment as to how sections 27 and 149 affected their administrative positions on filing, and ultimately, the CRA simply answered “No. However, the requirement to file can be waived” regarding the exception to filing a T2 return, and “Unable to comment” regarding the wholly-owned subsidiaries.