What's new for T1/T3 Internet version 10.01?

The latest DT Max program update is now available for downloading. It features the T1/TP?1 program for tax years 1996 to 2006 inclusively. It also includes the T3/TP-646 program for year-ends ranging from 2003 to 2007 inclusively.

Please note that T1 version 10.01 supports paper filing but does not support efile transmission due to its early release date. The efile module will be integrated to the next version of DT Max that will be stamped 10.10 and made available on CD-Rom and via www.drtax.ca to all DT Max users. This will take place as soon as we receive all relevant certifications towards the end of January or early February 2007.

Furthermore, in regards to DT Max T1, please be advised that this issue is an abridged version of the standard What's New release notes as it only provides a basic recap of changes implemented. Detailed keyword and tax change information will be released with version 10.10 of DT Max T1.

In this version...

DT Max T1

Preliminary status advisory
Program certification
DT Max references
Eligible dividends
Forms with "preliminary" status

New Keywords

About your DT Max licence key

As this release inaugurates a new production year, a valid licence key must be installed in order to have access to the latest calculation modules for either DT Max T1 or T3, that is to say for years 2006 and 2007 respectively. If the registered licence key is expired, the following warning message will be displayed on the start up screen:

For an invalid DT Max T1 licence key:

"DT Max will run in "demo" mode until a licence key is entered. You will be able to enter data and review returns, but you will not be able to file them with the government."

For an invalid DT Max T3 licence key:

"DT Max T3 will run in "demo" mode until a licence key is entered. You will be able to enter data and review the returns for year-ends after December 30, 2006, but you will not be able to file them with the government."

DT Max T1

Preliminary status advisory

Development and testing of sweeping tax changes require that we ask users to hold off filing returns with tax profiles that include the following items until they update their software to version 10.10:

• Employment expenses
• GST370/VD-358 - Sales tax rebate for partners and employees
• T5013 - Partnership income
• Farming - CAIS

For a more complete understanding of what is currently available, please consult the Forms with "preliminary" status section.

Program certification

DT Max is certified for paper filing under the following authorization numbers:

• Federal: RC-06-119
• Quebec: RQ06-TP34

DT Max references

Please refer to these knowledge base topics for the tax changes section:

Tax credits (2006)
Tax brackets and rates (2006)

Eligible dividends

Starting in 2006 there are now two types of dividends, eligible and other than eligible dividends, received from taxable Canadian corporations. Federal and Quebec gross-up and dividend tax credit differ for each type of dividend. They are as follows:

	FEDERAL	QUEBEC
Taxable amount: Eligible dividends ((%) of the actual amount of eligible dividends)	145%	145%
Taxable amount: Eligible dividends ((%) of the taxable amount of eligible dividends)	18.9655%	11.9%
Dividend tax credit: Eligible dividends ((%) of the actual amount of other dividends)	125%	125%
Dividend tax credit: Other than eligible dividends ((%) of the taxable amount of other dividends)	18.9655%	10.83% (1) 8% (2)
(1) On other than eligible dividends received before March 24, 2006 (2) On other than eligible dividends received after March 23, 2006

 

Dividend-related keywords have been modified to reflect these tax changes. For Quebec returns, it is important to enter all required dividend details in order to get accurate results. More details on this will follow in version 10.10.

For federal returns, here are the dividend related keywords:

Dividend-Act
Actual amount of dividends received

Dividend-Tax
Taxable amount of dividends other than eligible dividends [Fed. L.120]

Dividend-FedCrd federal credit
Dividend tax credit for dividends other than eligible dividends [Fed. L.425]

EligDividend-Act
Actual amount of eligible dividends

EligDividend-Tax
Taxable amount of eligible dividends [Fed. L.120]

EligDiv-FedCrd
Dividend tax credit for eligible dividends [Fed. L.425]

For Quebec, here are the dividend related keywords:

Dividend-ActQue
Actual amount of other than eligible dividends

EligDiv-ActQue
Actual amount of eligible dividends

Dividend-TaxQue
Taxable amount of dividends received [Que. L.128]

Dividend-QueCrd
Dividend tax credit [Que. L.415]

Forms with "preliminary" status

Federal:

Child tax benefit

AT60 Alberta Royalty Credit And Alberta Tax Refunds Application For Individuals
NR5 Application by a non-resident of Canada for a reduction in the amount of non-resident tax required to be withheld for tax year
T1A Request for Loss Carryback
T777 Statement of employment expenses
T1141 Information Return in Respect of Transfers or Loans to a Non-Resident Trust
T1142 Information Return in Respect of Distributions from and Indebtedness to a Non-Resident Trust
T1172 Additional Tax on Accumulated Income Payments from RESPs
T1198 Statement of Qualifying Retroactive Lump-Sum Payment
T1206 Tax on Split Income - 2006
T1212 Statement of Deferred Security Options Benefits
T1229 Statement of Exploration and Development Expenses and Depletion Allowance
T1237 Saskatchewan Farm and Small Business Capital Gains Tax Credit
T1241 Manitoba Mineral Exploration Tax Credit
T1273 STATEMENT A - Harmonized CAIS Program Information and Statement of Farming Activities for Individuals - 2006
T1284 Saskatchewan employee's tools tax credit
T1285 Nova Scotia Equity Tax Credit
T2036 Provincial or Territorial Foreign Tax Credit
T2203 Provincial and Territorial Taxes for 2006- Multiple Jurisdictions
T4164 Manitoba Odour-Control Tax Credit
T5013 Statement of Partnership Income


Quebec:

Child tax benefit

Quebec Child support
Employment expenses
Quebec tax for non-resident
TP-1.R-V Request for an Adjustment to an Income Tax Return
TP-22-V Income Tax Payable by an Individual Who Carries On a Business in Canada, Outside Québec
TP-25-V Income Tax Payable by an Individual Resident in Canada, Outside Québec, Who Carries On a Business in Québec
TP-59-V Employment Expenses of Salaried Employees and Employees Who Earn Commissions
TP-75.2-V Employment Expenses of Salaried Tradespeople
TP-232.1-V Business Investment Loss
TP-729-V Carry-Forward of Net Capital Losses
TP-776.42-V Alternative Minimum Tax
TP-1026-V Calculation of Instalment Payments to Be Made by Individuals - 2006
VD-358-V Québec Sales Tax Rebate for Employees and Partners

DT Max T3

New Keywords

MARK-MODEL
Mark and model of vehicle.

Amount.amt
Amount of minimum tax.

T-Slip
Information slips.

Name.t
Name of the issuer of the information slip.

Dividend.t
Actual amount of dividends received.

Cap-Gains.t
Amount of capital gains

Lump-Sum-Pen.t
Lump-sum pension income [Fed. L.19] (Q [Que. L.61] ) (T3 box 22) (Q (RL-16 box B) )

Interest.t
Interest from Canadian sources

Other-Income.t
Amount of other income

Foreign-Inc.t
Type and amount of foreign income earned

Foreign-Tax.t
Type and amount of foreign income tax paid

Country.t
Name of the country and identifying number

Royalties.t
Royalties from Canadian sources (T5 box 17) (Q (RL-3 box H) )

Accrued-Annuities
Type of accrued annuity income (T5 box 19) (Q (RL-3 box J) )

Ins-FundLoss.t
Insurance segregated fund capital losses (T3 box 37) (Q (RL-16 box A) )

PartXII-2-Cr.t
Part XII.2 tax credit [Fed. L.90] (T3 box 38)

Donations.t
Charitable donations and gifts per T-slips

ITC-Invest.t
Amount of investment eligible for an ITC

ITC-Credit.t
Amount of investment tax credit (ITC)

RepID.c
Representative identification number

Bus-Number.c
Representative's business identification number

Consolidate.s
Filing consolidated slips for mutual fund trusts