  What's new for T1/T3 version 10.30? |
DT Max version 10.30 is a CD release that features the T1/TP-1 program for
tax years 1997 to 2006 as well as the 2007 tax planner, in addition to fully
supporting T1/TP-1 efile. Version 10.30 also features the T3/TP-646 program
for fiscal periods ending from 2003 to 2007 inclusively.
Please note that all program versions are first made available on the Internet.
In this version...
DT Max T1
DT Max T3
DT Max T1
Known issues fixed in version 10.30
Carryforwards to 2007
Due to changes made with respect to the carryforward of the following items,
we recommend that you recalculate your affected clients with version 10.30
in tax year 2006 in order to obtain the right carryforward information in
2007. You can create, in tax year 2006, a filter (option Filter the client
list in the Tools menu) searching for the relevant keyword to get
a list of potentially affected clients who should be recalculated.
Federal
The CEE - Canadian Exploration Expenses carryforward under the Resource-Pool
keyword was not calculated properly when there was a prior year ITC present
under the ITC-PriorYr keyword (filter on ITC-PriorYr keyword).
Resources expenses from a T5013A/T5013 were not carried forward to 2007 under
the Resources-Pool keyword in cases where the resources deduction was limited
to $0 through the Deduction.r keyword (filter on Deduction.r keyword).
Quebec
The QST refunded on dues was not deducted from dues in v10.10 (
see FAQ
), the
clients in this situation that were filed with this version should be recalculated
(filter on QST-Credit keyword).
Further to the new credit in Quebec to average the income reported from a
wood lot, the keyword DED-FORESTAVERAG was added to the Business group,
clients' files containing this keyword that were calculated with a version
prior to v10.20 should be recalculated in order to obtain the carryforward
to 2007 (found under the HistForestAver keyword). Filter on DED-FORESTAVERAG
keyword.
Billing module improvements
The DT Max billing module now accepts a time billing fee structure. The rate card, accessible through the Billing option of the Preferences menu, allows for 5 different hourly rates (level 1 through level 5). After updating the rate card in the automatic billing setup, you can use the Bill-Hours keyword in the client's file to enter the number of hours to be charged at any given hourly charge rate.
Improved visual cues for tax year reference
The taxation year reference has been made more visible to help prevent users from entering data in the wrong year. The user interface of the entire DT Max suite ( T1, T2 , T3) has been enhanced with eye-catching graphics with tags such as "Planning" and "Previous year".
Version highlights
Implementation of announced tax changes
The Budget speeches:
Federal
(March 19, 2007)
Newfoundland
and Labrador (April 26, 2007)
Prince
Edward Island (April 10, 2007)
Nova
Scotia (March 23, 2007)
New
Brunswick (March 13, 2007)
Quebec
(May 24, 2007)
Ontario
(March 22, 2007)
Manitoba
(April 4, 2007)
Saskatchewan
(March 22, 2007)
Alberta (April
19, 2007)
British Columbia
(February 20, 2007)
Northwest
Territories (February 8, 2007)
Nunavut
(March, 2007)
Yukon
(April 19, 2007)
Please refer to these knowledge base topics for a detailed review of tax
changes implemented:
The tax changes knowledge base topic above discusses among others, the changes
in the following excerpt. Please click on the above link for full details:
Excerpt of 2007 tax changes
Federal tax changes (excerpt)
- The new tax rates and income brackets as shown on Schedule 1 are as follows:
|
Taxable Income Bracket
|
Rate
|
|
$0
|
$37,178
|
15.5%
|
|
$37,178
|
$74,357
|
22%
|
|
$74,357
|
$120,887
|
26%
|
|
more than $120,887
|
29%
|
- The personal basic amount is increased to $8,929, up from $8,839.
- The age amount is increased to $5,177, up from $5,066.
- The spousal and eligible dependant amounts are increased to $8,929, up
from $7,505.
- Eligible earnings for CPP/QPP purposes are capped at $43,700. The rate
is 4.95%, setting the maximum contribution to $1,990, up from $1,911.
- Employment insurance earnings maximum is now $40,000. All non-Quebec workers
contribute a maximum of $720 at a rate of 1.8%.
- The pension income amount remains unchanged at $2,000.
- The maximum amounts for a caregiver and for an infirm dependant age 18
or older are increased to $4,019 per dependant, up from $3,933 each.
- The maximum amount (3% of net income) deducted to calculate allowable medical
expenses is increased to $1,926, up from $1,884.
- The new maximum Canada employment non-refundable tax credit is $1,000,
up from $250.
- A new $2,000 per child non-refundable tax credit for children under 18
is calculated on Schedule 1. In light of this, a new option has been added
in the Transfer-OV keyword that can be used in a dependant's file to override
the transfer.
- A new non-refundable tax credit of up to $500 can be claimed on Schedule
1 for eligible enrolment fees to a physical activity program for children
under the age of 16.
- The maximum amount of the refundable medical expenses supplement (line
452) has been increased to $1,022.
Ontario tax changes (excerpt)
- The tax rates are unchanged but apply to new income brackets. The surtax
rates are unchanged but are calculated on new tax thresholds:
|
Taxable Income Brackets
|
Rate
|
Surtax rate
|
Threshold
|
|
$0
|
$35,488
|
6.05%
|
20%
36%
|
$4,100
$5,172
|
|
$35,488
|
$70,976
|
9.15%
|
|
more than $70,976
|
11.16%
|
- The personal basic amount is increased to $8,553.
- The age amount is increased to $4,176.
- The spousal amount, the amount for an eligible dependant and the amount
for an infirm dependant (age 18 or older) are increased to $7,262.
- The maximum amount for retirement income is increased to $1,183.
- The maximum Ontario Health Premium remains unchanged at $900.
Quebec tax changes (excerpt)
- The tax rates are unchanged but apply to new income brackets as follows:
|
Taxable Income Bracket
|
Rate
|
|
$0
|
$29,290
|
16%
|
|
$29,290
|
$58,595
|
20%
|
|
more than $58,595
|
24%
|
- The basic amount is increased to $9,745.
- The additional complementary amount is $3,095.
- The amount for persons living alone is increased to $1,180.
- The amount for post-secondary studies is increased to $3,720.
- The amount for dependent child is increased to $2,705.
- The amount for a single-parent family is increased to $1,465.
- The maximum amount of employment insurance premiums is $584.
- The maximum amount of Quebec parental insurance plan (QPIP) premiums is
$245.44.
- The medical expenses tax credit has been increased to $1,020.
- The maximum contribution to the Quebec prescription drug insurance plan
(Schedule K) is increased to $538.
- The maximum amount for the general deduction for workers is increased to
$1,000, up from $500.
Integration of meals & lodging to the employment
expense group
The data entry of meals and lodging (TL2/TP-66) has been streamlined and reorganized.
These expenses are now part of the employment expense group, thus allowing the
claim of the GST/HST and QST rebates.
Furthermore, the calculation of meal costs has been improved for the simplified
and batching methods. When the simplified method is selected, DT Max will now
make calculations based on a per meal allowance of $17, no longer requiring
the input of the dollar value of meals taken. When the batching method is selected,
DT Max now caps meal expenses to $34 per day.
New Quebec calculation work charts
Two new work charts have been added to expose the internal calculations DT
Max performs.
The first, which pertains to the Quebec refundable tax credit for medical expenses
(line 462), tests whether the work-related income pre-requisite is fulfilled.
The second shows calculation details for Quebec parental insurance plan (QPIP)
overpayments (line 457).
Capital gain history group enhancements
Manual entries are now simplified with the addition of an option capturing
the taxable capital gains (TCG) eligible for the capital gain deduction in the
Cap-History group. Also, to help users keep track of when capital losses
are applied, a new column entitled Capital losses of previous years used
has been added to the capital gains history table.
Printing of CAIS forms (DT Max T1 & T3)
T1163 - CAIS Program Information and Statement of Farming Activities for Individuals
T1273 - Harmonized CAIS Program Information and Statement of Farming Activities
for Individuals
For the 2007 taxation year, the layout of CAIS forms T1163 and T1273 has been
changed in order to comply with CRA requirements. These forms now follow a static,
instead of a dynamic format; if more space is needed, the relevant page will
be reprinted.
Infertility group
The refundable tax credit for the treatment of infertility has risen from 30%
to 50%, in case of a third or any additional attempt at in vitro fertilization.
The ATTEMPTS keyword has been added to reflect that change.
New option for the authorization letter when filing an adjustment
More flexibility has been added to the T1-Adjust group, used to generate
the T1-ADJ/TP-1.R forms for the request of an adjustment to a tax return. The
Info-Authorize secondary keyword has a new option called No authorization
letter. When selected, the authorization section of the form will be left
blank.
Notes and reminders
Deceased or bankrupt taxpayers
While the planner version is not suitable for filing the returns of living
taxpayers, it can legally be used to file returns on behalf of deceased or bankrupt
taxpayers. Upon calculating, tax plans will appear with our preliminary updates
of tax forms for the new tax year but returns of deceased or bankrupt taxpayers
will appear on approved forms from the previous tax year, pursuant to government
instructions.
For more information, please search for these knowledge base documents :
Preparing the return of a deceased taxpayer.
Filing of bankruptcy returns.
Printing prescribed forms for 2007 returns
Year after year, there is a certain amount of confusion amongst preparers
surrounding form versions. Administrative policies differ from one level of
government to the other, on the validity prescribed forms:
Quebec
When producing a 2007 return before official annual forms are made available,
depending if the Quebec form is prescribed or not, the year printed may be 2006
or 2007. Even though all system calculations are at 2007, only a full paper
certification process (done in the fall) permits developers to change the year
on prescribed forms.
Also, the authorization number (RQ06-TP34), found on all prescribed forms,
does not and should not print on these types of returns.
Federal
On all federal forms, the year is changed to 2007 on all forms.
DT Max T3
Version highlights
Tax changes
T3 version 10.30 reflects budgetary tax rate and threshold changes for all
jurisdictions. The incorporated federal and Quebec speeches were pronounced
on March 19 and May 24 2007, respectively.
T3 form year stamp
Habitually, current year calculations are in effect before the forms on which
they appear are updated. This year however, T3 (federal) provincial tax calculation
forms will be stamped 2007, hence the calculations will correspond to the
form. For the other federal T3 related forms, they will remain in their 2006
version even though 2007 calculations are performed.
Separate dividend keywords for Quebec
Enter the actual amount of dividends for both eligible and ordinary dividends.
DT Max runs Schedule B calculations to arrive to the corresponding taxable
and tax credit amounts.
New forms and their corresponding keywords
T3M/TP-1129.53 - Environmental Trust Income Tax Return
Display-OV feature added for trust returns
Since a qualifying environmental trust is exempt from Part I tax, DT Max
does not generate the T3/TP-646. However, if you wish to produce the tax return,
insert this keyword in the file and pick the relevant option.
T3M
This keyword is used to indicate the type of environmental trust and to generate
the Environmental Trust Income Tax return.
A qualifying environmental trust, as per subsection 248(1), means a trust
resident in a province and maintained at that time for the sole purpose of
funding the reclamation of a site for the operation of a mine, the extraction
of clay, peat, sand, shale or aggregates or the deposit of waste.
Taxable-Inc
Use the keyword Taxable-Inc to enter the amount of income subject to tax
under Part XII.4.
A qualifying environmental trust is exempt from tax under Part I.
Contributions
Use the keyword Contributions to enter the total amount of contributions
made to the Trust in the year.
Withdrawals
Use the keyword Withdrawals to enter the total amounts withdrawn from the
trust in the year.
Acct-Payment
Use the keyword Acct-Payment to enter any payments that have already been
paid on this account.
Acct-Payment-QC
To enter any payments that have already been paid on this account.
Tax-Exempt
To indicate whether the beneficiary is exempt from paying income tax. This
information is required for the Quebec form TP-1129.53.
T3P - Employees' Pension Plan Income Tax Return
T3P
Use the keyword T3P to indicate whether a T3P form should be completed.
Trustees of a trusteed pension plan must complete this form every year.
Plan-Number
Pension plan's registration number.
If the trust or pension corporation transferred the plan assets to a new trust,
use the keyword Transfer-Asset to enter the name of the new trust, pension
corporation, or insurance company and the date the funds were transferred.
Disbursements
To list all disbursements and losses of the pension plan in the tax year.
These amounts will be entered on Schedule 2 of form T3P.
Receipts-Gains
To list all receipts and gains of the pension plan in the tax year. These
amounts will be entered on Schedule 2 of form T3P.
Account-Payments
Use the keyword Account-Payments to enter any payments that have already
been paid on this account.
T2223 - Election Under Subsection 159(6.1) of the Income Tax Act By a
Trust to Defer Payment of Income Tax
TP-1031.1 - Election by a Trust to Pay Income Tax in Instalments on a
Deemed Sale Applicable to Certain Trusts (Quebec)
IncLessDeemDisp
Taxable income calculated without taking into account the income arising from
deemed dispositions. This amount will be entered on line 82 of form T1055
and on line 2 of the Quebec form TP-1031.1.
Adj-TaxPayable
To enter the income tax that would be payable by the trust if its taxable
income excluded any deemed dispositions. This amount will be entered on line
83 of form T1055 and on line 3 of the Quebec form TP-1031.1.
No-Instalments
To indicate the amount of payments that will be required to repay the elected
amount of deferred tax. DT Max will compute equal annual instalments based
on this information.
Interest.e
The trust will have to pay interest, compounded daily at the prescribed rate
in effect at the time the election is made. The first instalment must be paid
no later than the payment deadline which is the 90th day following the end
of the taxation year in which the election is made. Therefore, the first instalment
does not attract any interest.
T3NT-1 - Northwest Territories Risk Capital Investment Tax Credit Calculation
LSVCC
Use the keyword LSVCC to enter the cost of shares of a labour-sponsored
venture capital that can be found on the T2C(NWT) slip. This amount, to a
maximum of $100,000, will be entered on form T3NT-1 to calculate the risk
capital investment tax credit at a rate of 15% on the first $5,000 and 30%
on the remaining amount.
CEVCC
Use the keyword CEVCC to enter the cost of shares of a community-endorsed
venture capital that can be found on the T2C(NWT) slip. This amount will be
entered on form T3NT-1 to calculate the risk capital investment tax credit
at a rate of 30%.
BUS-DIRECT-INVEST
Use the keyword BUS-DIRECT-INVEST to enter the cost of shares of community-endorsed
venture capital that can be found on the T2C(NWT) slip. This amount will be
entered on form T3NT-1 to calculate the risk capital investment tax credit
at a rate of 30%.
RISKCAPINVCR-CF
Use the keyword RISKCAPINVCR-CF to indicate the year and the amount of
unused credit available to carry forward.
RISKCAPINVCR-CB
Use the keyword RISKCAPINVCR-CB to enter the amount of credit to carry
back.
Modified forms
T2038 - Investment Tax Credit
RELATEDEMPLOYER
Apprenticeship Job Creation Tax Credit (ITC Code 6)
If the apprentice is also employed by another employer related to you (as
defined under subsection 251(2)), has it been agreed in writing with all
of those related taxpayers, that you are the only employer who will be claiming
the apprenticeship job creation tax credit for this tax year for each apprentice
whose contract number (or social insurance number (SIN) or name) appears
on the list ? (If not, you cannot claim the tax credit.).
Contract-Number
For each apprentice in their first 24 months of the apprenticeship, enter
the apprenticeship contract number registered with Canada, or a province
or territory of Canada, under an apprenticeship program designed to certify
or licence individuals in the trade. If there is no contract number, enter
the SIN or the name of the eligible apprentice.
Elig-Trade.itc
To enter the Red Seal code of the apprenticeship that would qualify for
the apprenticeship job creation tax credit.
Nova Scotia T3NS - Nova Scotia political contribution tax credit
The calculation of the Nova Scotia political contribution tax credit has
been modified in order to take into account the changes announced in Bill
no. 117. This comes into effect in 2007 and subsequent taxation years, where
the tax credit will be equal to 75% of the aggregate amount contributed,
up to a maximum of $750. In other words, a credit could be obtained for
up to $1,000 in political contributions.
June 20, 2007
|