New calculation of Ontario capital tax

Program(s) affected: T2 Document created: February 14, 2005 Tax year(s): 2005 Document last modified: May 20, 2005 Version(s): 8.10 Problem status: Fixed in v8.25

Why is DT Max not including the most recent changes implemented by the Ontario Ministry of Finance in its calculation of the Ontario capital tax for a taxation year ending in 2005?

Starting January 1, 2005, the current $5 million deduction from taxable paid-up capital should increase by $2.5 million each year until the deduction reaches $15 million on January 1, 2008.

However, the Ontario Ministry of Finance did not consent to the implementation of these changes into DT Max v8.10 as finalized forms were not available at the time.

For the time being, we recommend that you use the current version of the CT23 return and file as is, or wait until a subsequent version of DT Max is released with the updated calculation of the capital tax.

Note that if you file a 2005 return at this time, it will be set aside and will not be assessed until the Ontario MoF's new system has been put into place to accept the new measures.