CRA confirms that a valid s. 83(2) election and the accompanying resolution must specify a dollar amount

Immediately after its sale of a subsidiary for a sale price based that would not be finalized until audited financial statements were issued, the seller adopted a resolution providing for the payment of a capital dividend corresponding to the portion of the non-taxable gain realized on the sale, but whose amount would not be known with certainty until three months later.

(a) Would CRA consider the election filed on the day of that resolution to be invalid because it did not stipulate a dollar amount?

(b) Would be valid If it instead was filed late, with the applicable penalties, but without a new resolution specifying the amount?

CRA responded:

The CRA's position, as stated in Technical Interpretation 2020-0852211C6, remains that, generally, the amount of the dividend designated under the election provided for in subsection 83(2) must be stated on Form T2054 and in the resolution authorizing that election in order for it to be considered valid, regardless of whether the election is filed within the prescribed time limits, or late and accompanied by the payment of the penalty established under subsection 83(4).

Neal Armstrong. Summary of 9 October 2025 APFF Roundtable, Q.11 under s. 83(2).