Incorrect optimization of the provision for taxes

Program(s) affected: T1 Document created: June 09, 2003 Tax year(s): 2003 Document last modified: December 16, 2003 Version(s): Problem status: Fixed

The provision for taxes is not optimized correctly by DT Max.

This problem occurs in the presence of instalments paid by the corporation during the fiscal period. As a workaround, follow the instructions below:

1. In the drop-down menu located at the top left of the data entry screen, choose Plan A (Blank) and select the option Copy from production.

2. Delete the data pertaining to instalments paid in the year, under INSTALPAID.

3. Enter the keyword Optimize and select the option Provision for inc. taxes - (excl. tax on cap.) or Provision for taxes - (incl. tax on cap.)

4. Calculate the return and print the page titled Provision for taxes optimization.

5. Return to production mode by selecting Production in the drop-down menu mentioned in step 1.

6. Enter the keyword Optimize and select the option Do not optimize provision for taxes.

7. Using the information from the page printed in step 4, make the necessary changes to data entry in order to indicate:

   • the revised provision for income taxes - current (section A);
     
   • the revised retained earning (deficit) (section B); and
     
   • the revised net income (loss) after taxes (section C).

8. Calculate the return and verify the results.

This problem is now fixed in version 7.01.