21 April 2008 External T.I. 2007-0220471E5 F - Excessive Capital Dividend and 220(3.2) -- summary under Subsection 220(3.2)

After indicating that no s. 184(4) election was available where one of the shareholders had been dissolved subsequently to the excessive capital dividend, CRA went on to indicate that no legislative amendment appeared to be required to address this situation since “a corporation may apply to the Minister pursuant to subsection 220(3.2) to revoke its election under subsection 83(2) in respect of the dividend it has paid.”