At 2017-0709021C6 F, CRA accepted that the amount of the dividend paid out of the capital dividend account on a winding-up need not be specifically stated in the applicable resolution. CRA effectively indicated that this accommodation was sui generis, and that it would not allow an eligible dividend designation to state that it was in an amount equaling the lesser of the dividend amount and the general rate income pool ("GRIP") balance at the end of the corporation's taxation year.
The solution to making a designation in a specific dollar amount that was too high was to elect on the excessive dividend amount under s. 185.1(2) to convert it to a non-eligible dividend, so as to avoid the Part III.1 tax. CRA also noted that, administratively, it:
[a]llows … mitigating the effects of an excessive eligible dividend designation by accepting that the election provided for in subsection 185.1(2) can be made by a corporation at the time of filing its income tax return, without having to wait for a notice of assessment of Part III.1 tax to be issued.