CT23 short form and small business deduction of a CCPC

After d-filing a CT23 return, I received an assessment denying the small business deduction claim on the ground that the corporation was not a CCPC.

This situation arises when d-filing a CT23 short-form return for a CCPC claiming the small business deduction. In such circumstances, the Ontario Ministry of Finance cannot tell that the corporation is in fact a CCPC, based on the information provided.

To work around this problem, you can either d-file (or paper file) an amended CT23 return (long form), or contact the Ministry directly.

Note that in order to file an amended CT23 long form return, you must use the keyword StatusChange and select the option Amended return. You will also need to use the keyword CT23-OV to force the display of the long form.

DT Max v7.01 features a new d-file field indicating that the corporation filing the CT23 short form is indeed a CCPC.