Leap Year Feb 28 Fiscal Year

Hi all,

What happens for corps with Feb 28 fiscal year this year? I am reading mixed articles on weather CRA accepts February 29 or it considers it a fiscal year change (which would be stupid).

Do you file Feb 29?

I think the Act allows the date to be within 7 days of the normal tax year-end. This covers off companies filing with a floating year-end. I have a couple corporate clients whose year end is the first Saturday in May. Obviously it changes year-to-year. EDIT - Upon further checking, it’s 249.1(1) of the Act that a fiscal period cannot exceed 53 weeks after the period began.

Doesn’t that refer to the first year?

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No, the wording doesn’t refer to a first year. It’s based on how many weeks after the period began.

"For the purposes of this Act, a fiscal period of a business or a property of a person or partnership means the period for which the person’s or partnership’s accounts in respect of the business or property are made up for purposes of assessment under this Act, but no fiscal period may end

(a) in the case of a corporation, more than 53 weeks after the period began,"

Some retailers used to operate on 13 4 week periods.

Yes, this is what I assumed but my concern is this: 15 August 2012 External T.I. 2012-0438481E5 - Change of Fiscal Period Year-End | Tax Interpretations

I can’t, for the life of me, think of a reason why a company would change their year-end to February 29. Perhaps a reorganization depended on that year-end from a timing perspective? CRA did say that a year-end change to Feb 29th would need their concurrence (which I agree with).

Filing a T2 with a year-end at the end of February as “February 29, 20XX” is not a year-end change. However, in that TI, CRA provides the answer that I agree with.

“Additionally a corporation with a “floating” year-end does not need to ask concurrence of the Minister under subsection 249.1(7) to be able to schedule a different year end each year – with the restriction that a fiscal period cannot exceed 53 weeks.”

I realize this isn’t a floating year-end you’re talking about but it’s as close to your answer as you’ll find. I’ve filed leap-year T2’s for years showing the year-end as Feb 29 and have never had CRA comment on it. I think they have better things to do.


Pretty sure the programing gods at taxcycle have it right. When you roll forward a Feb 28, 2023 yearend to 2024 the new yearend is Feb 29th. Roll that one forward to 2025 and you are back to Feb 28th.


Nope - when corps do a reorg like that they use timestamps:
11:57 pm 28/02/xx
11:58: pm 28/02/xx
11:59: pm 28/02/xx

Saw a few of those in my Rev Can days.


…oh, and to answer the original query…a Feb 28 year end “floats”, so in a leap year it is quite acceptable to file it as of Feb 29. I have at least one client like that.

Grocery stores used to (don’t know if they still do) report on 13x4 week periods, so their year ends also float.

That is certainly a very ‘technical’ answer. Have never seen this actually adhered to in practice though.

Totally agree Bert. There is no need. For years I’ve filed my Feb 28 clients with a Feb 28 year end (I only have one left now) without CRA even caring. But an actual “change of fiscal year end” is definitely different than a “floating year end”.

Why anyone would do this though is beyond me, unless there is some VERY specific reason, perhaps dealiing with a shareholder transaction that requires it. (Can’t think of a circumstance that would matter, though, offhand!!)

No reason other than paying tax every four years, lol.


IMNSHO, the best solution if you want a February year-end is to provide in the corporate minute book and in communication with CRA that the fiscal year shall end “on the last day of February”.

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