Capital / Surtax / CMT / Canada Recovery Dividend

TaxOnCapital

The following options are applicable for the keyword TaxOnCapital.

• No
• Yes

  See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 233 - Taxable capital - related corporations
Line 234 - Taxable capital - associated corporations

ReasonExempt

PartJVName.p

PartJVRev

Enter the corporation's interest in the partnership or joint venture in Member-Int% in the RelatedParty group related to the same partnership or joint venture. DT Max will calculate the corporation's share of gross revenues based on the % entered.

The corporation is subject to CMT if the total assets at the end of the year of the corporation or the associated group of corporations are equal to or more than $50,000,000, and the total revenue for the year of the corporation or the associated group of corporations is equal to or more than $100,000,000. Enter the corporation's gross revenues in the GrossRevenue keyword in the NetIncome group.

PartAsset.j

The corporation is subject to CMT if the total assets at the end of the year of the corporation or the associated group of corporations are equal to or more than $50,000,000, and the total revenue for the year of the corporation or the associated group of corporations is equal to or more than $100,000,000. Enter the corporation's total assets in the Assets keyword in the TaxOnCapital group which relates to the corporation.

Enter the corporation's interest in the partnership or joint venture in Member-Int% in the RelatedParty group related to the same partnership or joint venture. DT Max will calculate the corporation's share of total assets based on the % entered.

AdjAssets.j

The following options are applicable for the keyword AdjAssets.j.

• Non ded. provision reducing assets

Enter the amount of any provisions, except depreciation and depletion (for Quebec), reducing assets on the balance sheet which are not deductible for tax purposes.

• Mortgages reducing assets

Enter the amount of mortgages that were used to reduce the total assets and that must be included in the paid-up capital.

• Liabilities reducing assets

Enter the amount of other liabilities that were used to reduce the total assets and that must be included in the paid-up capital.

• Invest in partnership/joint venture

Investments in partnerships and joint ventures reduce the amount of total assets from the balance sheet; the corporation's share of such partnerships' and joint ventures' total assets is added to total assets.

Enter the amount of each partnership's and joint venture's assets in a separate TaxOnCapital group related to that partnership or joint venture in the PartAsset.j keyword.

• Deprec. & depletion in liabilities

Enter the amount of provisions for depreciation and depletion, if they are included in liabilities. This amount will be deducted from total assets according to the balance sheet.

• Doubtful debts in liabilities

Enter the amount of the provision for doubtful debts included in the corporation's liabilities to the extent that the amount was deducted from income for tax purposes. This amount will be deducted from total assets according to the balance sheet.

• NBV > UCC (depreciable assets)

Enter the amount by which the net book value of depreciable assets, excluding appraisals, exceeds the UCC of such assets for tax purposes. This amount will be deducted from total assets according to the balance sheet.

• NBV > tax cost (deferred development)

Enter the amount by which the net book value of deferred development costs exceeds the amount of such costs for tax purposes. This amount will be deducted from total assets according to the balance sheet.

• Curr. liab. (excl. A/P) non res corps

For non resident corporations, enter the amount of non capital current liabilities , excluding trade accounts payable to corporations outstanding for more than 90 days prior to the balance sheet date, related to Canada. This amount will reduce the total assets for purposes of the corporation's taxable capital.

• Share of partnership/JV's assets

Enter the corporation's share of the assets of partnerships or joint ventures to which the corporation belongs. This amount will increase total assets from the balance sheet.

• Other (specify)

Enter description for other amount.

PaidUpCap   

The following options are applicable for the keyword PaidUpCap.

• Paid-up capital stock

This is the corporation's paid-up capital stock from its financial statements including any other participating interests in the nature of capital stock. Include premiums received on shares issued and deduct discounts not written off and any share subscriptions receivable.

• Retained earnings (deficit)

Enter the corporation's retained earnings as a positive amount or its deficit as a negative amount.

• Capital surplus (Fed/MB/SK)

Capital surpluses must be included in Manitoba, Saskatchewan paid-up capital.

For Manitoba and Saskatchewan, the amount entered here will print in the surpluses section of the calculation of taxable capital.

• Contributed surplus
• Reserves not deducted in income for tax (Fed)

Enter the total amount of reserves which were not deducted in computing net income for tax purposes for the year. These reserves include provision for deferred taxes but do not include depreciation or depletion reserves.

This amount will be added to capital for part I.3 tax purposes on line 101 of Schedule 33.

• Defer. unreal. foreign exch. gain (loss) (Fed)
• Appraisal surplus (MB/SK)

Contributed and appraisal surpluses are separately identified in the Saskatchewan and Manitoba calculations of taxable capital in the surpluses section on page 2 of those capital tax returns.

• Loans & advances (Fed)

Enter the total amount of loans and advances to be included.

• Loans & advances from shareholders (MB)

Loans and advances from shareholders include cash advances and credits made directly or indirectly by shareholders or related persons. The amount entered here will print in the loans and advances section of the taxable paid-up capital calculation on page 2 of the Manitoba capital tax return.

• Loans & advances from corporations (MB/SK)

Loans and advances from corporations entered here will print in the loans and advances section of the taxable paid-up capital calculations on page 2 of the Saskatchewan and Manitoba capital tax returns.

• Loans & advances, shar. & related persons (SK)

Loans and advances from shareholders and related persons and related corporations entered here will print in the Loans and advances section of the taxable paid-up capital calculation on page 2 of the Saskatchewan capital tax return.

• Loans & advances, pension & other trusts (SK)

Loans and advances from pensions and other trusts must be included in Saskatchewan paid-up capital effective April 1, 1992. The amount entered here will print in the Loans and advances section of the taxable paid-up capital calculation on page 2 of the Saskatchewan capital tax return.

• Bonds & bond mortgages (MB/SK)
• Debentures (MB/SK)

Bonds and bond mortgages and debentures are considered to be taxable for purposes of Saskatchewan and Manitoba capital tax. The amounts entered here will print in the loans and advances section of the taxable paid-up capital calculations on page 2 of the Saskatchewan and Manitoba capital tax returns.

• Dividends declared & unpaid at year-end (Fed)

Enter the amount of any dividends declared but not paid by the corporation before the end of the year. This amount will be added to capital for part I.3 tax purposes on line 101 of Schedule 33.

• All other indebt. outstanding > 365 days (Fed/MB)

Enter the amount of all other indebtedness (other than in respect of a lease) of the corporation that has been outstanding for more than 365 days before the end of the year. This amount will be added to capital for part I.3 tax purposes on line 111 of Schedule 33.

• Share of partnership's capital (Fed)

Enter the corporation's share of capital in respect of a partnership of which the corporation is a member at the end of the year. This amount will be added to capital for part I.3 tax purposes on line 112 of Schedule 33.

• Deferred tax debit at year-end (Fed)

Enter the amount of the corporation's deferred tax debit balance, if any, at the end of the year. This amount will be deducted from capital for part I.3 tax purposes on Schedule 33.

• Patronage dividend deducted & in capital (Fed)

Enter the amount deducted for patronage dividends per federal ITA section 135(1)) from income for tax purposes, to the extent that the amount may reasonably be regarded as being included in any of the items entered which represent the corporation's capital for part I.3 purposes. This amount will be deducted from capital for part I.3 tax purposes on Schedule 33.

• Non res. corp.'s assets used in Cdn P.E. (Fed)

This is relevant only in the case of a non resident corporation. Enter the carrying value at the end of the year of assets used in carrying on any business through a permanent establishment (P.E.) in Canada during the year. This amount will be added to capital for part I.3 tax purposes on Schedule 33.

• Bonds & debentures payable (Fed)
• Debts relating to finance of new vehicles (QC)
• Debts guaranteed by corporation property (QC)

Debts guaranteed by corporation property, such as mortgages payable, must be included in taxable paid-up capital.

• Bank loans & overdrafts

Bank loans and overdrafts should be included in taxable capital for Quebec.

• Other loans & advances (Fed/QC)

Other loans and advances which are taxable for Quebec tax on capital purposes should be entered here.

• Interest payable on debts (QC)

Interest payable on debts which is accrued interest in respect of debts, loans and advances which are included in Quebec taxable paid-up capital should be entered here.

• Bank acceptances & similar securities (Fed/QC)

For taxation years ending after May 14, 1992, bank acceptances and similar securities which are issued for a term greater than six months must be included in Quebec taxable paid-up capital.

• Expenses for issuing of shares, bonds (QC)

Expenses relating to the issue of shares or bonds during the taxation year must be deducted in the Quebec calculation of paid-up capital, if these fees have not been deducted from retained earnings or otherwise in the paid-up capital calculation.

• Expenses acquisition/conversion of vessel (QC)
• Ded. for finance of inv. of new vehicles (QC)
• Mortgages payable (Fed/MB/SK)
• Lien notes payable (Fed/MB/SK)
• Indebtedness secured by property (MB)

Indebtedness represented by secured property must be included in Manitoba taxable capital. The amount entered here will print in the Indebtedness section of the taxable capital calculation on page 2 of the Manitoba capital tax return.

• Amounts deducted for tax > per books (SK)
• Deferred mining expl. & develop. exp. (MB/SK)
• Other items (specify) (QC)

Enter other items which are not above here. The description entered will print beside the item on the return or on a separate schedule, if more than one other item is entered. Additions to paid-up capital should be entered as positive amounts and deductions as negative.

OthPUC

Include the amount by which N.B.V. of depreciable assets, excluding appraisals, exceeds U.C.C. Include the amount by which N.B.V. of deferred development and exploration costs exceeds the tax position for income tax purposes.

The information entered here will appear on the Manitoba capital tax return (M.C.T).

The following options are applicable for the keyword OthPUC.

• Amt deducted for tax in excess of amt booked (MB) - specify

OthSurplus   

OthDebt

MiningOpDed

When such corporations are not yet in the production stage, they are exempt from tax on capital but must pay the minimum amount.

Assistance.tc

Provision

The following options are applicable for the keyword Provision.

• Special reserve per balance sheet

The special reserve as per the balance sheet includes:

- reserves related to the sale of property in the course of the corporation's business in respect of unpaid amounts from the sale (see Fed ITA 20(1)(n));

- reserves related to the sale of capital property in respect of proceeds not due until after the end of the year (see Fed ITA 40(1)(a)(iii));

- reserves related to the sale of capital property in respect of proceeds not due until after the end of the year where a replacement property has been or will be acquired within the statutory period (see Fed ITA 44(1)(a)(iii));

• Stocks / inventory

Stocks/inventory reserves are included in paid-up capital as follows:

Quebec: The amount entered will appear on line 305 of the CO-1136.

Ontario: The amount entered will form part of line 360 of the CT-23 return. DT Max assumes that the reserve was deducted from assets; the amount entered will be added to assets on line 440 of the CT-23 return.

• Investments

Investment reserves are included in paid-up capital as follows:

Quebec: The amount entered will appear on line 306 of the CO-1136.

Ontario: The amount entered will form part of line 360 of the CT-23 return. DT Max assumes that the reserve was deducted from assets; the amount entered will be added to assets on line 440 of the CT-23 return.

• Contingencies

Reserves for contingencies are included in paid-up capital as follows:

Quebec: The amount entered will appear on line 306 of the CO-1136.

Ontario: The amount entered will form part of line 360 of the CT-23 return. DT Max assumes that the reserve was deducted from assets; the amount entered will be added to assets on line 440 of the CT-23 return.

• Similar reserves

Reserves similar to the above are included in paid-up capital as follows:

Ontario: The amount entered will form part of line 360 of the CT-23 return. DT Max assumes that the reserve was deducted from assets; the amount entered will be added to assets on line 440 of the CT-23 return.

Manitoba and Saskatchewan: The total of amounts entered for inventory, investment, contingency and similar reserves will print in the Reserves section of the paid up capital calculation on page 2 of the MCT1 and S.C.T. 1 returns.

• Unqualified doubtful debts

The amount of the reserve deducted from income in respect of doubtful debts in excess of the allowable amount for tax purposes must be included in taxable capital for Quebec. The amount entered here will print in the provisions and reserves section of the paid-up capital calculation on page 3 of the CO-17 return.

• Future inc. tax liab. (asset)

Future income tax liabilities should be entered as positive amounts and future income tax assets as negative amounts.

• Reserves not deductible for tax

Reserves which are not deductible for tax are included in paid-up capital as follows:

Saskatchewan: The amount entered will print in the Reserves section of the S.C.T. 1 return.

• Reserves not deducted from assets

Reserves which are not deducted from assets is the amount entered in the above provisions (lines 360 and 361 of CT-23 return) which were not deducted from assets.

• Other (specify)

Enter description of other amounts.

NonDedReserves

Include the amount by which U.C.C. of depreciable assets exceeds N.B.V., excluding appraisals. Include the amount by which the tax position for tax purposes of deferred development and exploration costs exceeds N.B.V.

The information entered here will appear on the Manitoba capital tax return (M.C.T).

EligInvest   

The following options are applicable for the keyword EligInvest.

• Bank acceptances & similar sec

For taxation years ending after May 14, 1992,bank acceptances and similar securities are considered to be eligible property for purposes of the Quebec reduction for investments, loans and advances taken on paid-up capital.

• Bonds & oth sec - govt, mun & school

Bonds and other securities of governments, municipalities and school districts are eligible investments in Ontario, Manitoba, and Saskatchewan. For Ontario, these securities qualify as eligible investments if they were issued and held for 120 days prior to year-end.

• Debts secured by property O/S < six months

Enter debts resulting from the sale of goods or the rendering of services to another corporation. The debts must be secured in whole or in part by an asset of the other corporation, and must have been payable for six months or less. The amount entered will appear on line 353a of the C0-1136.

• Debts secured by property O/S > six months

Enter debts resulting from the sale of goods or the rendering of services to another corporation. The debts must be secured in whole or in part by an asset of the other corporation, and must have been payable for more than six months. The amount entered will appear on line 353b of the C0-1136.

• Div. payable on capital stock share of other corp - sch. 33

Enter the amount of dividends payable on a share of the capital stock of another corporation. This amount will be added to the corporation's investment allowance on line 405 of Schedule 33.

• Industrial bonds & debentures

Industrial bonds and debentures are eligible investments in Manitoba, and Saskatchewan.

• Interests in partnerships

Enter the carrying value at the end of the year of the corporation's interests in partnerships. For part I.3 tax purposes, the carrying value is deemed to be the corporation's share of each partnership's assets which are described in lines 401 to 405 of the investmemt allowance calculation on Schedule 33 i.e. the first four items presented for the EligInvest keyword in the "Federal" TaxOnCapital group. This amount will be added to the corporation's investment allowance for part I.3 tax purposes on Schedule 33.

• Inv. in financial inst. not related to corp

Investments in a financial institution not related to the corporation are eligible investments/property in Quebec. This information will appear on line 358 of the CO-1136.

• Loans & adv to partnership or JV's

Loans and advances to a partnership or joint venture are eligible property for Quebec to the extent that such amounts are included in the calculation of the paid-up capital of another corporation that has an interest in that partnership or joint venture. The amount entered will print on line 355 of the CO-1136.

• Loans and advances related corps
• Long-term debt of a financial instit

Enter the amount of long-term debt of a financial institution receivable of the corporation. This amount will be added to the corporation's investment allowance for part I.3 tax purposes on line 404 of Schedule 33.

• Mortgages receivable of other corps

Mortgages receivable from other corporations are eligible investments in Ontario, Manitoba, and Saskatchewan. For Ontario, mortgages due from capital tax-exempt corporations are not eligible.

• NBV of tax-exempt ship/aircraft

Enter the net book value of a ship or aircraft of the corporation if the income related thereto is exempt for Federal income tax purposes (Fed ITA 81(1)(c)); this exemption applies if the non resident corporation operates a ship or aircraft in international traffic and its country of residence grants similar relief to Canadian operators.

• Non res corp's debt re Cdn P.E.

This is relevant only if this is a non resident corporation. Enter the corporation's indebtedness at the end of the year that may reasonably be regarded as relating to a business it carried on during the year through a permament establishment (P.E.) in Canada. Do not include indebtedness which is part of corporate capital as defined in federal ITA sec. 181.2(3)(c) to (f). This amount will be deducted from the corporation's capital for part I.3 tax purposes on Schedule 33.

• Obligations of partnerships

Enter the corporation's share of the total amount of loans or advances to, bonds, debentures, notes, mortgages or similar obligations of partnerships of which the corporation was a member at the end of the year. Only include the obligations of partnerships all of whose members were, throughout the year, corporations (not financial institutions) that were not exempt from part I.3 tax (except due to federal ITA sec. 181.1(3)(d)). This amount will be added to the corporation's investment allowance for part I.3 tax purposes on Schedule 33.

• Other obligations of another corp

Enter the total amount of bonds, debentures, notes, mortgages or similar obligations due from other corporations, excluding financial institutions. This amount will be added to the corporation's investment allowance for part I.3 tax purposes on line 403 of Schedule 33.

• Trade A/R from corps O/S > 90 days

Trade accounts receivable are eligible investments for Manitoba, and Saskatchewan. These amounts reported as current assets on the corporation's balance sheet are considered to be eligible investments when they are outstanding for more than 90 days at year-end or the amount is part of a long-term debt receivable from another corporation.

• Other - enter description

SharesOfCorps

This information is used as a reduction from paid-up capital.

DT Max will update this keyword with certain information entered in the balance sheet, in the GIFI group, if the user chooses to synchronize the GIFI group with the TaxOnCapital group.

The amounts from the balance sheet are totals and, as such, are not distinguished for each issuing corporation. If a breakdown is required, you should manually adjust the amount for each issuing corporation.

BondsOfCorps

This information is used as a reduction from paid-up capital.

Oth-Loans&Adv

This information is used as a reduction from paid-up capital.

DT Max will update this keyword with certain information entered in the balance sheet, in the GIFI group, if the user chooses to synchronize the GIFI group with the TaxOnCapital group.

The amounts from the balance sheet are totals and, as such, are not distinguished for each issuing corporation. If a breakdown is required, you should manually adjust the amount for each issuing corporation.

Assets

DT Max will also use the total assets entered here to calculate the reduction for eligible investments or property from taxable capital.

For Ontario, the total amount of assets entered here affects whether the corporation is subject to Ontario corporate minimum tax.

AdjAssets.pd

The following options are applicable for the keyword AdjAssets.pd.

• Non ded. provision reducing assets

Enter the amount of any provisions, except depreciation and depletion (for Quebec), reducing assets on the balance sheet which are not deductible for tax purposes.

• Mortgages reducing assets

Enter the amount of mortgages that were used to reduce the total assets and that must be included in the paid-up capital.

• Liabilities reducing assets

Enter the amount of other liabilities that were used to reduce the total assets and that must be included in the paid-up capital.

• Invest in partnership/joint venture

Investments in partnerships and joint ventures reduce the amount of total assets from the balance sheet; the corporation's share of such partnerships' and joint ventures' total assets is added to total assets.

Enter the amount of each partnership's and joint venture's assets in a separate TaxOnCapital group related to that partnership or joint venture in the PartAsset.j keyword.

• Deprec. & depletion in liabilities

Enter the amount of provisions for depreciation and depletion, if they are included in liabilities. This amount will be deducted from total assets according to the balance sheet.

• Doubtful debts in liabilities

Enter the amount of the provision for doubtful debts included in the corporation's liabilities to the extent that the amount was deducted from income for tax purposes. This amount will be deducted from total assets according to the balance sheet.

• NBV > UCC (depreciable assets)

Enter the amount by which the net book value of depreciable assets, excluding appraisals, exceeds the UCC of such assets for tax purposes. This amount will be deducted from total assets according to the balance sheet.

• NBV > tax cost (deferred development)

Enter the amount by which the net book value of deferred development costs exceeds the amount of such costs for tax purposes. This amount will be deducted from total assets according to the balance sheet.

• Curr. liab. (excl. A/P) non res corps

For non resident corporations, enter the amount of non capital current liabilities , excluding trade accounts payable to corporations outstanding for more than 90 days prior to the balance sheet date, related to Canada. This amount will reduce the total assets for purposes of the corporation's taxable capital.

• Share of partnership/JV's assets

Enter the corporation's share of the assets of partnerships or joint ventures to which the corporation belongs. This amount will increase total assets from the balance sheet.

• Other (specify)

Enter description for other amount.

PaidUpCapDed

The following options are applicable for the keyword PaidUpCapDed.

• Activity in a CDTI or a CNE (innovative project)
• Deduction for an international financial centre
• Deduction for manufacturing corporation

To reduce the tax burden on companies in the manufacturing sector, a deduction will be allowed to manufacturing corporations, in calculating their paid-up capital, enabling them to eliminate their tax on capital.

• Major investment project
• Other deduction (specify)

Enter any other deductions from net income for tax purposes. These amounts will be deducted as other adjustments on the provincial return.

Elect-S1138.1

Once this election is made, the corporation's deduction from paid-up capital for the year will be nil.

The following options are applicable for the keyword Elect-S1138.1.

• No
• Yes

  See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 233 - Taxable capital - related corporations
Line 234 - Taxable capital - associated corporations

Goodwill

The following options are applicable for the keyword Goodwill.

• Goodwill
• Patent rights
• Copyrights
• Trademarks
• Other intang asset - enter descrip

PAMP-OV

FirstYr-Info

The following options are applicable for the keyword FirstYr-Info.

• Beginning of taxation year

PaidUpCap.f

The following options are applicable for the keyword PaidUpCap.f.

• Paid-up capital stock

This is the corporation's paid-up capital stock from its financial statements including any other participating interests in the nature of capital stock. Include premiums received on shares issued and deduct discounts not written off and any share subscriptions receivable.

• Retained earnings (deficit)

Enter the corporation's retained earnings as a positive amount or its deficit as a negative amount.

• Contributed surplus
• Debts relating to finance of new vehicles (QC)
• Debts guaranteed by corporation property (QC)

Debts guaranteed by corporation property, such as mortgages payable, must be included in taxable paid-up capital.

• Bank loans & overdrafts

Bank loans and overdrafts should be included in taxable capital for Quebec.

• Other loans & advances (Fed/QC)

Other loans and advances which are taxable for Quebec tax on capital purposes should be entered here.

• Interest payable on debts (QC)

Interest payable on debts which is accrued interest in respect of debts, loans and advances which are included in Quebec taxable paid-up capital should be entered here.

• Bank acceptances & similar securities (Fed/QC)

For taxation years ending after May 14, 1992, bank acceptances and similar securities which are issued for a term greater than six months must be included in Quebec taxable paid-up capital.

• Expenses for issuing of shares, bonds (QC)

Expenses relating to the issue of shares or bonds during the taxation year must be deducted in the Quebec calculation of paid-up capital, if these fees have not been deducted from retained earnings or otherwise in the paid-up capital calculation.

• Expenses acquisition/conversion of vessel (QC)
• Ded. for finance of inv. of new vehicles (QC)
• Other items (specify) (QC)

Enter other items which are not above here. The description entered will print beside the item on the return or on a separate schedule, if more than one other item is entered. Additions to paid-up capital should be entered as positive amounts and deductions as negative.

OthSurplus.f

OthDebt.f

MiningOpDed.f

Assistance.f

Provision.f

The following options are applicable for the keyword Provision.f.

• Stocks / inventory

Stocks/inventory reserves are included in paid-up capital as follows:

Quebec: The amount entered will appear on line 305 of the CO-1136.

Ontario: The amount entered will form part of line 360 of the CT-23 return. DT Max assumes that the reserve was deducted from assets; the amount entered will be added to assets on line 440 of the CT-23 return.

• Investments

Investment reserves are included in paid-up capital as follows:

Quebec: The amount entered will appear on line 306 of the CO-1136.

Ontario: The amount entered will form part of line 360 of the CT-23 return. DT Max assumes that the reserve was deducted from assets; the amount entered will be added to assets on line 440 of the CT-23 return.

• Contingencies

Reserves for contingencies are included in paid-up capital as follows:

Quebec: The amount entered will appear on line 306 of the CO-1136.

Ontario: The amount entered will form part of line 360 of the CT-23 return. DT Max assumes that the reserve was deducted from assets; the amount entered will be added to assets on line 440 of the CT-23 return.

• Unqualified doubtful debts

The amount of the reserve deducted from income in respect of doubtful debts in excess of the allowable amount for tax purposes must be included in taxable capital for Quebec. The amount entered here will print in the provisions and reserves section of the paid-up capital calculation on page 3 of the CO-17 return.

• Future inc. tax liab. (asset)

Future income tax liabilities should be entered as positive amounts and future income tax assets as negative amounts.

• Other (specify)

Enter description of other amounts.

EligInvest.f

The following options are applicable for the keyword EligInvest.f.

• Bank acceptances & similar sec

For taxation years ending after May 14, 1992,bank acceptances and similar securities are considered to be eligible property for purposes of the Quebec reduction for investments, loans and advances taken on paid-up capital.

• Debts secured by property O/S < six months

Enter debts resulting from the sale of goods or the rendering of services to another corporation. The debts must be secured in whole or in part by an asset of the other corporation, and must have been payable for six months or less. The amount entered will appear on line 353a of the C0-1136.

• Debts secured by property O/S > six months

Enter debts resulting from the sale of goods or the rendering of services to another corporation. The debts must be secured in whole or in part by an asset of the other corporation, and must have been payable for more than six months. The amount entered will appear on line 353b of the C0-1136.

• Inv. in financial inst. not related to corp

Investments in a financial institution not related to the corporation are eligible investments/property in Quebec. This information will appear on line 358 of the CO-1136.

• Loans & adv to partnership or JV's

Loans and advances to a partnership or joint venture are eligible property for Quebec to the extent that such amounts are included in the calculation of the paid-up capital of another corporation that has an interest in that partnership or joint venture. The amount entered will print on line 355 of the CO-1136.

• Other - enter description

SharesOfCorps.f

This information is used as a reduction from paid-up capital.

BondsOfCorps.f

This information is used as a reduction from paid-up capital.

Oth-Loans&Adv.f

This information is used as a reduction from paid-up capital.

Assets.f

AdjAssets.f

The following options are applicable for the keyword AdjAssets.f.

• Non ded. provision reducing assets

Enter the amount of any provisions, except depreciation and depletion (for Quebec), reducing assets on the balance sheet which are not deductible for tax purposes.

• Mortgages reducing assets

Enter the amount of mortgages that were used to reduce the total assets and that must be included in the paid-up capital.

• Liabilities reducing assets

Enter the amount of other liabilities that were used to reduce the total assets and that must be included in the paid-up capital.

• Deprec. & depletion in liabilities

Enter the amount of provisions for depreciation and depletion, if they are included in liabilities. This amount will be deducted from total assets according to the balance sheet.

• Doubtful debts in liabilities

Enter the amount of the provision for doubtful debts included in the corporation's liabilities to the extent that the amount was deducted from income for tax purposes. This amount will be deducted from total assets according to the balance sheet.

• Other (specify)

Enter description for other amount.

PaidUpCapDed.f

The following options are applicable for the keyword PaidUpCapDed.f.

• Activity in a CDTI or a CNE (innovative project)
• Deduction for an international financial centre
• Deduction for manufacturing corporation

To reduce the tax burden on companies in the manufacturing sector, a deduction will be allowed to manufacturing corporations, in calculating their paid-up capital, enabling them to eliminate their tax on capital.

• Farming/fishing business
• Major investment project
• Other deduction (specify)

Enter any other deductions from net income for tax purposes. These amounts will be deducted as other adjustments on the provincial return.

Telecom-Capital

PartICrLim

The following options are applicable for the keyword PartICrLim.

• Client corp. (period after June 30/06)
• Predecessor corp. (period after June 30/06)

LCTCr-CF

DT Max will optimize credits claimed by claiming older credits first while claiming credits originating from predecessor corporations before those from this corporation. You can still limit the amount of credits claimed from the corporation or predecessor corporations with the PartICrLim keyword. If no limit is entered, DT Max will claim the lesser of the credits available and the maximum credit calculated.

The following options are applicable for the keyword LCTCr-CF.

• Part I tax credit - corporation

DT Max keeps track separately part I tax credits belonging to the corporation and those which were transferred from predecessor corporations on an amalgamation between corporation or wind-up of a subsidiary into its parent corporation. Schedule 42 (T921) requests this classification.

• Part I tax credit - amalg/windup

  See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 233 - Taxable capital - related corporations
Line 238 - Part VI tax on capital
Line 242 - Unused Part I tax credit

PartICr-CF

The following options are applicable for the keyword PartICr-CF.

• 1st prior year
• 2nd prior year
• 3rd prior year
• 4th prior year
• 5th prior year
• 6th prior year
• 7th prior year

PartICR-CB

The following options are applicable for the keyword PartICR-CB.

• 1st prior year
• 2nd prior year
• 3rd prior year

  See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 242 - Unused Part I tax credit

Part-I3-Inst

The following options are applicable for the keyword Part-I3-Inst.

• Can. resident corporation - life insurance
• Can. resident corporation - other insurance
• Non resident corporation - life insurance
• Non resident corporation - other insurance
• Large financial institution

Large financial institutions include banks, trust companies and life insurance companies (ITA subs. 190(1)).

• Authorized foreign bank - Schedule 34

  See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 233 - Taxable capital - related corporations
Line 234 - Taxable capital - associated corporations
Line 238 - Part VI tax on capital
Line 242 - Unused Part I tax credit
Line 720 - Part VI tax

  See the CRA's general income tax guide:
Line 720 - Part VI tax payable

Taxable-Cap   

The following options are applicable for the keyword Taxable-Cap.

• Long-term debts
• Capital stock
• Members' contributions
• Retained earnings/deficit
• Accumulated other comprehensive income
• Policyholders' liabilities
• Contributed surplus
• Any other surplus
• 90% of net contractual service margin
• Deferred tax debit balance
• Reserves not deducted from part I income
• Deferred acquisition expenses

Total amount of the corporation's deferred acquisition expenses in respect of its property and casualty insurance business.

• Deduction per subs. 130.1(1) or 137(2)
• 10% of bank's risk-weighted assets and exposures
• Deduction from the bank's capital
• Tangible property - non segregated

Total tangible property used in Canada by the financial institution. This does not include property held by the institution primarily for the purpose of resale that was acquired by the financial institution, in the year or the preceding year, as a consequence of another person's default or anticipated default in respect of a debt owed to the institution.

• Tangible property - partnership

The insurance corporation's proportional interest in a partnership's tangible property used in Canada.

NR-Ins-Corp   

The following options are applicable for the keyword NR-Ins-Corp.

• Proportion of surplus funds - operations
• Surplus funds derived from operations - QC
• Amount of additional fed. tax payable - QC
• Amount of branch tax payable - QC
• Attributed surplus
• Other surpluses - insurance businesses
• Long-term debts - insurance businesses
• Reserves - insurance businesses

Reserves for the year (other than reserves for amounts payable out of segregated funds) that may reasonably be regarded as having been established in respect of insurance businesses carried on in Canada.

• Other reserves - non subparagraph 138(3)(a)(i)
• Other reserves - subparagraph 138(3)(a)(i)
• Policy loan outstanding - subsection 138(12)
• Surplus funds derived from operations (part VI)

Invest-Allow   

The following options are applicable for the keyword Invest-Allow.

• Capital stock
• Long-term debts
• Surplus

Amount of any surplus of the related institutions contributed by the corporation and not reflected in the carrying value of shares and long-term debts.

Fin-Assets

The following options are applicable for the keyword Fin-Assets.

• Total assets - section 8600 ITR
• Canadian assets - section 8600 ITR

Ins-Premiums

The following options are applicable for the keyword Ins-Premiums.

• Total premiums
• Canadian premiums

Reserve-Liab

The following options are applicable for the keyword Reserve-Liab.

• Total reserve liabilities
• Canadian reserve liabilities

For-Ins-Sub

Cap-Sub

The following options are applicable for the keyword Cap-Sub.

• Long-term debts
• Capital stock
• Members' contributions
• Retained earnings/deficit
• Accumulated other comprehensive income
• Policyholders' liabilities
• Contributed surplus
• Any other surplus
• 90% of net contractual service margin
• Deferred tax debit balance
• Tangible property - non segregated

Total tangible property used in Canada by the financial institution. This does not include property held by the institution primarily for the purpose of resale that was acquired by the financial institution, in the year or the preceding year, as a consequence of another person's default or anticipated default in respect of a debt owed to the institution.

• Tangible property - partnership

The insurance corporation's proportional interest in a partnership's tangible property used in Canada.

Invest-Sub

The following options are applicable for the keyword Invest-Sub.

• Capital stock

Capital stock invested in the foreign insurance subsidiary per paragraph 8605(1)(b) of the ITR.

• Long-term debts

Long-term debt incurred by the foreign insurance subsidiary per paragraph 8605(1)(b) of the ITR.

• Contributed surplus

Additional surplus contributed into the foreign insurance subsidiary per paragraph 8605(1)(c) of the ITR.

Liab-Sub

Life-Insurer

The following options are applicable for the keyword Life-Insurer.

• Total reserve liabilities
• Total reserve liabilities - foreign subsidiaries
• Canadian reserve liabilities
• Reserves of life insurer
• Reserves of segregated fund
• Reserves (ITA, part I tax)
• Reserves (ITA par. 840 a))
• Unpaid policy loan amounts including interest

Life-Ins-Ded

This information is used to calculate the amount of tax on capital for life insurers on Quebec form CO-1175.4.

Life-Agree

Life-Bus

The following options are applicable for the keyword Life-Bus.

• Carried on in Canada
• Carried on in Canada (excluding Quebec)

Part-VI2-Inst

The Canada recovery dividend is a temporary additional tax on the taxable income of certain bank or life insurer group members. It is imposed for the 2022 tax year and payable in equal instalments over five successive tax years (beginning with the 2022 tax year).

If the corporation is subject to Part VI.2 tax, the keyword Part-VI2-Inst opens the group to enter information relating to federal Schedule 67.

The following options are applicable for the keyword Part-VI2-Inst.

• Canada Recovery Dividend (Schedule 67)

  See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 725 - Part VI.2 tax

  See the CRA's general income tax guide:
Line 725 - Part VI.2 tax payable

Tax-Payable

Since Schedule 67 will only be generated for the 2022 tax year, the amount of tax payable calculated in Part 3 of Schedule 67 will be carried forward within the keyword Tax-Payable for the next four successive tax years.

  See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 725 - Part VI.2 tax

  See the CRA's general income tax guide:
Line 725 - Part VI.2 tax payable

Special-Tax

The following options are applicable for the keyword Special-Tax.

• 001 Quebec film productions
• 002 Qual. non guaranteed convertible security
• 003 Capitalization of small/med.-sized businesses
• 004 Credit for training
• 005 Credit for on-the-job training period
• 006 Design credit
• 007 Credit for multimedia titles
• 008 Shipbuilding
• 009 Financing of university research contract
• 010 Credit respecting the reporting of tips
• 011 Information technology - salaries
• 012 Information technology - acquisitions
• 013 Regional venture capital corporation
• 014 Less polluting dry cleaning technology
• 015 Deduction in paid-up capital
• 016 Scientific research & exper. development
• 017 Training of young specialized employees
• 018 Solicitation expenditures
• 019 Portfolio management corporations
• 020 Start-up expenditures
• 021 Salaries and wages - Cité du multimédia
• 022 Job creation - clothing and footwear industry
• 023 Railway companies
• 024 Technological adaptation services
• 025 Salaries and wages - CNNTQ
• 026 Salaries - SDZCIMM
• 027 Eligible custom brokerage contracts - SDZICMM
• 028 Acquis./leasing of eligible equipment - SDZCIMM
• 029 Credit for sound recordings productions
• 030 Credit for musical productions
• 031 Development of new economy
• 032 Apprenticeship of new employees - CO
• 033 Electronic trading solutions - PME
• 034 Aluminum valley
• 035 Book editing
• 036 Salaries - CCE
• 037 Film dubbing
• 038 Film production services
• 039 Promotion with investors
• 040 Hiring of junior financial analysts
• 041 Building of strategic structures - ZCIMM
• 042 Maintenance of race horses
• 043 Training of employees - Angus technopole
• 044 Major investment project
• 045 Numerical shows
• 046 Salaries - corp. in Gaspésie/Qc maritime area
• 047 Foreign investment fund - IFC
• 048 Processing in resource areas
• 049 Resources
• 050 Corporation in the Cité de la biotechnologie
• 051 Specific hiring of specialized installations
• 052 Hiring of junior financial analysts - DFI
• 053 Stock brokers with the Nasdaq
• 054 Electronic business activities
• 055 Co-operatives
• 056 Biotechnology in designated sites
• 057 Nutraceuticals and functional foods
• 058 Corporation in an innovation centre
• 059 Recovery of R&D credits
• 060 Quebec business investment corporation
• 061 Mineral resources
• 062 Hiring of new employees - resource regions
• 063 Building of access roads and public bridges
• 064 Labour-sponsored fund
• 065 Job creation - resource regions
• 066 Ethanol production in Quebec
• 067 Major employment-generating projects
• 068 Investment tax on capital
• 069 Installation of pig manure processing
• 070 Pre-competitive R&D in private partnership
• 071 Training in the manufacturing sector
• 072 Francization
• 073 Investment
• 074 E-business development
• 075 Salaries - IFC
• 076 Hiring of employees by new financial services corp.
• 077 New financial services corporations
• 078 Diversification of markets
• 079 Modernization of tourist accomodations
• 080 Prod. of multimedia events and environments
• 081 Share issue expenses (REA II)
• 082 Large investment project
• 083 Damage insurance firms
• 084 Building used in M&P activities
• 085 Information technologies
• 086 Income allocated to a tax-free reserve by shipowner
• 087 Interest on loan granted by seller-lender
• 088 Promote employment in Gaspé/maritime regions
• 089 Innovative manufacturing corporations
• 090 Major digital transformation projects
• 091 Additional CCA - Data processing or M&P equipment
• 092 Employee training tax credit - SMB
• 093 Digital transformation of print media companies
• 094 Pyrolysis oil production in Quebec
• 095 Retention of experienced workers - SMB
• 096 Support the print media companies
• 097 Investment and innovation
• 098 Persons with severely limited capacity - SMB
• 100 Commercialization of innovations in Québec
• 101 Synergy capital
• 102 Production of biofuel in Québec
• 099 More than two special taxes applicable

Amt-WriteOff