Section 40(3) of the Immigration and Refugee Protection Act, SC 2001, c 27, provides that:
(3) A foreign national who is inadmissible under this section (misrepresentation) may not apply for permanent resident status during the period referred to in paragraph (2)(a).
Jurisprudence
In Baloch v Canada (Citizenship and Immigration), VC3-01413, the Immigration and Refugee Board affirmed that if someone applied for permanent residence before they were found inadmissible for misrepresentation then IRCC could still process the application.