After noting that it was expanding its webpage listing “eligible distributions,” by showing the date of the distribution in addition to the subsequent date of CRA approval under s. 86.1, CRA then addressed the question as to whether it would waive the late-filing penalty under s. 220(3.5) when, due to a delay between the distribution date and the approval date, the Canadian taxpayer late-filed the election under s. 86.1(2)(f). CRA indicated (as per its summary) that:
Where the year of the approval (and the publication on CRA's website) is not the same as the year the transaction was completed, the question of whether the CRA, as a general rule, will consider the delay in receiving the corporation's approval as an important factor in its decision to waive the penalty for a late-filed section 86.1 election [which] is a case by case determination that will be made in light of all the facts and circumstances relating to a given situation.