Regarding its position regarding a late designation under ss. 88(1)(d) and 87(11), CRA stated:
... CRA ... allow[s] on an administrative basis, a late designation under paragraph 88(1)(d) to the extent that:
1) the parent corporation (or the amalgamated corporation where subsection 87(11) applies) agrees to allocate the excess calculated in paragraph 88(1)(d) pro rata to capital property that is eligible for an "increase" in cost, based on the available excess as calculated under subparagraph 88(1)(d)(ii) of the Act; or
2) the parent corporation (or the amalgamated corporation where subsection 87(11) applies) agrees to have the CRA determine, in its discretion, what amount of the excess will be added to the cost of which property.
… [T]he CRA [will not] accept a late designation if it is for retroactive tax planning purposes, if the designation is part of a tax avoidance scheme, or if it is necessary, in order to give effect to the designation, to issue a … reassessment … [where] the normal reassessment period … has expired.