CRA generally will accept a late eligible dividend designation for an excess capital dividend amount election made within three years
29 October 2013 - 2:06pm
S. 89(14.1) gives CRA the discretion to accept an eligible dividend designation that is up to three years late. CRA generally will accept a late designation if the reason for the lateness was an honest and non-negligent mistake in calculating the capital dividend account at the time of making a capital dividend election, so that the taxable dividend arises as a result of a s. 184(3) election to deem the excess portion the capital dividend to be a separate taxable dividend.
Neal Armstrong. Summary of 2 August 2013 T.I. 2013-0475261E5 ("Eligible Dividend - Late Filing 89(14.1) & 184(3)") under s. 89(14.1).