Calculation of the GRIP addition for 2006

Program(s) affected: T2 Document created: 07 04, 2007 Tax year(s): 2007 Document last modified: Version(s): 10.25 Problem status: Pending

Is DT Max calculating the GRIP addition for 2006 properly in light of the calculation change recently announced by CRA?

The calculation of the GRIP addition will be incorrect in cases where a negative amount could have been reported on one or several of the following lines (951, 952, 953, 954, 955) if the form's instruction "if negative, enter "0"" had not been present.

The CRA changed the GRIP addition for 2006 calculation to perform a global calculation for years 2001 through 2005 instead of calculating each year separately*.

* In doing so, if the total taxable dividends paid by the corporation, entered on line 14 in Part 5, exceeded the total of lines 11 and 12, it did not impact the other years.

If you file a return for a corporation whose tax year includes January 1, 2006:

1. Use the Override keyword;
2. Select Schedule 53;
3. Under the Field-Data keyword, enter the relevant field number (951, 952, 953, 954, 955) and the negative amount that should appear on this field.

Example for the tax year ending in 2001 (field 951):

• Line 13 = 321
• Line 14 = 500
• Line 15 = -179

Because line 15 is negative DT Max enters 0, in order to report the right amount on this field you will perform the following override:

Override           Schedule 53

Field-Data           951           $ -179

Repeat this step for each field that should have had a negative amount if the form's instruction " if negative, enter "0" " had not been present.

If you already filed the corporation tax year that includes January 1, 2006, access the 2007 tax year in DT Max and then, in the file of the corporation, enter the correct amount under the GRIP-Balance keyword.