T2 tax calculations
510 Capital / Surtax / CMT / Premium taxes
My client is subject to the gross amount of part I.3 tax for a fiscal period ending in 2005 even though its capital deduction for the year is equal to or greater than its taxable capital. Why?This occurs in 2005 only if the corporation has taxable capital. As a workaround, use the keyword Override, select Schedule 33, then enter "801" under FIELD-DATA. Finally, enter the amount of capital deduction claimed for the year (e.g. $50,000,000). If however the corporation is part of a related group, proceed instead with the following overrides: Use the keyword Override, select Schedule 36 and enter "400" under FIELD-DATA. Then enter the amount of capital deduction claimed by the corporation for the year, enter "3" under FIELD-DATA and enter $50,000,000. Finally, enter "410" under FIELD-DATA and enter $50,000,000.
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