In finding that capital dividends potentially could be paid on one series of a class and not the other, CRA stated:
Under subsection 248(6), where a corporation issues shares of a class of its capital stock in one or more series, each series is to be treated as a class of shares for the purposes of the Income Tax Act.
Thus, to the extent that the applicable corporate law allows the corporation to pay a separate dividend on a series of shares of a given class of its capital stock … the election provided for in subsection 83(2) could be made with respect to the dividend that became payable on that series.