Her Majesty the Queen, Appellant v. Nassau Walnut Investments Inc., Respondent, 97 DTC 5051, [1998] 1 CTC 33 (FCA) -- summary under Paragraph 55(5)(f)

Although it had been planned that the portion of deemed dividends received by the taxpayer (arising on the redemption of shares held by it) that did not come out of safe income would be subject to a designation under s. 55(5)(f), all of such amounts were reported by the taxpayer in its return as deemed dividends due to an error by a subsequently-appointed accounting firm. In finding that the taxpayer was entitled to make a designation under s. 55(5)(f) after being reassessed by the Minister under s. 55(2), Robertson J.A. characterized the making of a late designation as being in the nature of seeking an amendment to an income tax return, rather than seeking to file a late election, and found that such a late amendment was not objectionable where it arose as a result of a subsequent reassessment by the Minister under s. 55(2) (it being clear that s. 55(5)(f) related directly to the issues surrounding the applicability of s. 55(2)).