Ontario tax rates in 2003

Program(s) affected: T2 Document created: June 25, 2003 Tax year(s): 2003 Document last modified: Version(s): Problem status: Resolved in v6.25

Why is the Ontario income tax payable calculated incorrectly for 2003 year-ends?

In v6.00 and subsequent, DT Max calculates the Ontario income tax payable at a rate of 11% instead of the rate of 12.5% currently applicable. This results in an amount of tax payable that is lower than it should be.

The 2002 budget postponed the reduction of corporate tax rates for one year. The proposed general tax rate of 11% will be applicable as of January 1, 2004. For 2003, the rate is unchanged at 12.5% effective since October 1, 2001.

For the time being, as a workaround, use the keyword Override for field 232 of the CT23 return, and indicate the total amount that should appear on line 32 of page 4 of the CT23.

With respect to 2003 year-ends, the implementation of the proposed rate of 10% for Canadian M&P corporations has also been delayed until January 1, 2004. The current rate remains at 11%, effective since October 2001.

As a workaround, use the keyword Override for field 155 of the CT23 return, and indicate the total amount that should appear on line 155 of page 6 of the CT23.