Opco made an excessive eligible dividend designation in respect of two dividends of $200 each paid by it in its 2020 taxation year, due to a reduction in its GRIP balance from carrying back non-capital losses to earlier years. Due to an innocent error, only one of the two excessive dividends was reported in a Part III.1 return. CRA stated:
Opco could make the election under subsection 185.1(2) to the extent that the Minister reassesses the Part III.1 tax and any interest and penalties payable for the 2020 Loss Year. Opco would be able to file this election on or before the 90th day after the day on which the notice of reassessment (which is an assessment within the meaning of subsection 248(1)) is sent and in the manner applicable pursuant to subsection 185.1(2). Based on the administrative practice set out in Schedule 55, we accept that this election should be made prior to the sending of the notice of reassessment of the Part III.1 tax to be assessed under amended Schedule 55. In addition, this election should meet the criteria of subsection 185.1(3).