DT Max - What's new for T1/T2/T3 version 16.10?

What's new for T1/T2/T3 version 16.10?

DT Max version 16.10 is a CD release that features the T1/TP-1 program for tax years 2001 to 2012 inclusively and fully supports T1/TP-1 EFILE. This version also features the T2 program for fiscal periods ending from 2001 to 2013, as well as the T3/TP-646 program for tax years ending from 2003 to 2012 and fully supports Corporation Internet Filing (T2, CO-17 and AT1).

Please note that all program versions are first made available on the Internet.

In this version...

About your DT Max licence key

DT Max T1

1. Program certification

2. Version highlights

a) New diagnostics

b) Ontario child benefit

c) Filtering on processing statuses

3. New keywords

4. New options

5. Notes and reminders

a) Efile

b) Demo database

c) Carryforwards

d) Changes to the Quebec sales tax (QST)

6. DT Max references

7. Messages from CRA

8. Messages from Revenu Québec

DT Max T2

1. Program certification

2. Version highlights

a) Schedule 32 (T661): Changes affecting certain line numbers

1. Program certification

2. Version highlights

a) 5 new types of trusts

b) New Quebec Identification Number

c) RL-16

d) TP-646.R

e) Taxation of trust not resident in Canada

3. Warning: verifying carryforwards

4. New forms

5. Revised forms

6. Forms under review

7. New keywords

8. New options

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 module for DT Max T1, T2 and/or T3, that is to say for year 2012. If the registered licence key is expired, the following warning message will be displayed on the startup screen:

For an invalid DT Max T1, T2 or T3 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."

DT Max T1

1. Program certification

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

2. Version highlights

a) New diagnostics

i. Notes and diagnostics

Federal notice of assessment or tax refund

The federal notice of assessment or tax refund is not being sent to the taxpayer's address. This is due to the selection made when completing Part D of the T183 efile authorization form. To change this selection, please refer to the EFILE-ADDRESS keyword or the EFILE defaults (within the EFILE setup).

FEDERAL EFILE:

Ineligible for federal efile

Due to the reason(s) below, this return is ineligible for federal efile.

The amount in T4A box 048 must also be reported as business income.
The amount in T4A box 020 must also be reported as business income.
The amount in T4A box 028 (Other income ... business income (memo)) must also be reported as business income.
The T4 box 78 amount must be entered within a T4 footnote and a business.
The T4 box 81 amount must be entered within a T4 footnote and a business.
The T4 box 82 amount must be entered within a T4 footnote and a business.
The T4 box 83 amount must be entered within a T4 footnote and a business.

QUEBEC EFILE:

Ineligible for Quebec efile

Due to the reason(s) below, this return is ineligible for Quebec efile.

The amount in T4A box 048 must also be reported as business income.
The amount in T4A box 020 must also be reported as business income.
The amount in T4A box 028 (Other income ... business income (memo)) must also be reported as business income.
The T4 box 78 amount must be entered within a T4 footnote and a business.
The T4 box 81 amount must be entered within a T4 footnote and a business.
The T4 box 82 amount must be entered within a T4 footnote and a business.
The T4 box 83 amount must be entered within a T4 footnote and a business.

ii. Error prevention report

Federal:

- T4A Box 028, Other income included in business income (memo)

T4A box 028 is present. Make sure this amount is also included within a business keyword group.

- T4 Box 78, Fishers – Gross income

T4 box 78 is present. Make sure this amount is also included within a business keyword group.

- T4 Box 81, Placement or employment agency workers

T4 box 81 is present. Make sure this amount is also included within a business keyword group.

- T4 Box 82, Taxi drivers and drivers of other passenger-carrying vehicles

T4 box 82 is present. Make sure this amount is also included within a business keyword group.

- T4 Box 83, Barbers or hairdressers

T4 box 83 is present. Make sure this amount is also included within a business keyword group.

Quebec:

- Quebec Line 391 - Tax credit for workers 65 or older

The tax credit for workers 65 or older claimed on line 391 has been reduced by the amounts from lines 359 through 367 of the return. You should consider transferring the amount claimed on line 361 and/or 367 to the spouse.

If you wish to transfer an amount to the spouse, use the keyword Optimize .

b) Ontario child benefit

The calculation of the Ontario child benefit has been implemented.

c) Filtering on processing statuses

Please note that two new options:

EFILE consent

Review required

have been added to the selection of processing statuses allowing you to filter the client list using processing statuses.

3. New keywords

(Please note that most of these keywords were added in version 16.01.)

1. Date-of-Move : If the province or territory of residence changed in 2012, enter the date of the move.

Date-of-Move

2. HomeAddress-Mail : Is the home address the same as the mailing address?

HomeAddress-Mail

3. CTB-SITUATION : Situation which applies to the dependant in the period

CTB-SITUATION

Not eligible dependant
The child is in shared custody

N.B.: Please note that this keyword is generated only when the option “Situation changed during the period” is selected for the keyword CTB-CHILD-OV .

The following sub-keyword has been created for the keyword CTB-SITUATION :

CTB-MONTHS : Months during which situation applied to the dependant

Use the keyword CTB-MONTHS to enter each month that is characterized by the situation entered in the CTB-SITUATION keyword.

4. Treaty-Amount (under the Non-Resident keyword group): Exempt Canadian-source income received by a non-resident. (Fed. L.256) (Que. L. 297)

Use the keyword Treaty-Amount to enter Canadian-source income received by a non-resident that's exempt from tax because of a tax treaty.

5. Split-CapGain : Capital gain to include in the tax on split income calculation [T1206 L.A]

Use the keyword Split-CapGain to enter the capital gain on dispositions made in the current year that are subject to the tax on split income.

6. SPLIT-RESERVE : Amount of current year reserve [T1206 L. C]

Use the keyword SPLIT-RESERVE to enter the amount of reserve (if any) for a disposition made in the current year. DT Max will carry forward this amount in the keyword SPLIT-CG-YEAR .

7. SPLIT-CG-YEAR : Year of sale [T1206]

The keyword group SPLIT-CG-YEAR has been created for the following three purposes: 1) it carries forward the amount of reserve claimed in the current year, 2) it maintains all the information for purposes of calculating any subsequent reserves (i.e. year of sale and amount of capital gain) and 3) it maintains the type of shares involved for purposes of reporting the reserve associated to the capital gain on the appropriate line of federal Schedule 3 (if applicable) and on the appropriate line of Quebec Schedule G (if applicable).

8. Split-CG-Hist : Type and amount of capital gain.

Use the keyword Split-CG-Hist to enter the amount of capital gain on a disposition made in a previous year that was subject to the tax on split income. This historical information is for purposes of calculating any current or subsequent reserves.

9. Split-Opening : Amount of previous year reserve (from line B of Form T1206)

Use the keyword Split-Opening to enter the amount of reserve claimed in the previous year on a capital gain that was subject to tax on split income.

10. SPLIT-CLOSING : Closing balance of capital gain reserve for this year [T1206 L. C]

Use the keyword SPLIT-CLOSING to enter the amount of reserve for the current year on a gain that was subject to tax on split income. This keyword should only be used to enter the amount of reserve for the current year for a disposition made in a PREVIOUS year, since you must use the keyword SPLIT-RESERVE for a disposition made in the year of sale.

11. APPRENTICE-TRAIN : Select the total of salaries and wages range paid in the previous tax year (ON479)

Use the keyword APPRENTICE-TRAIN to enter the total of the salaries and wages paid in the previous tax year to an apprentice employed in a qualifying apprenticeship at a permanent establishment in Ontario, or reasonable fees paid or payable to an employment agency for services provided by the apprentice during the first 48 months of the apprenticeship training program.

The following sub-keywords have been created for this group:

I. TOTAL-ELIGEXP.2 : Total amount of eligible expenditures for each apprentice (ON479)

Use the keyword TOTAL-ELIGEXP.2 to enter the apprentice name, and the amount of the eligible expenditures that must be reduced by the amount of any government assistance received, entitled to receive, or may reasonably expect to receive for the eligible expenditures.

II. TOTAL-SALARIES.3 : Total of salaries and wages paid in the previous tax year (ON479)

Use the keyword TOTAL-SALARIES.3 to enter the total of the salaries and wages paid in the previous tax year to an apprentice employed in a qualifying apprenticeship at a permanent establishment in Ontario, or reasonable fees paid or payable to an employment agency for services provided by the apprentice during the first 48 months of the apprenticeship training program.

III. TOTAL-ELIGEXP.1: Total amount of eligible expenditures for each apprentice (ON479)

Use the keyword TOTAL-ELIGEXP.1 to enter the apprentice name, and the amount of the eligible expenditures that must be reduced by the amount of any government assistance received, entitled to receive, or may reasonably expect to receive for the eligible expenditures.

IV. ELIG-NUMBER.O : Number of eligible apprentices hired under the Ontario apprenticeship training tax credit program (ON479 L.6324)

Use the keyword ELIG-NUMBER.O to enter the number of eligible apprentices the business or partnership hired under the Ontario apprenticeship training tax credit program.

V. PARTNERSHIP.O : Are you claiming the tax credit as a member of a partnership? (ON479 L.6326)

Use the keyword PARTNERSHIP.O to indicate whether you are claiming the tax credit as a member of a partnership.

VI. BUSNUMBER.O : Enter the nine digits of the business number (ON479 L.6327)

Use the keyword BUSNUMBER.O to enter the nine digits of the business number.

VII. APPRENTICEEXPEND : Apprentice name and the amount of eligible expenditures for this apprentice.

Use the keyword APPRENTICEEXPEND to enter the apprentice name, and the amount of the eligible expenditures that must be reduced by the amount of any government assistance received, that you are entitled to receive, or may reasonably expect to receive for the eligible expenditures.

The following sub-keyword has been created for the keyword APPRENTICEEXPEND :

ANNUALLIMIT-DAYS : Number of days during the year the apprentice was employed (only if not entire year)

Use the keyword ANNUALLIMIT-DAYS to enter the number of days the apprentice was employed during the year.

12. Med-Sr-Equipment : Date, description and expenses incurred for purchase, lease, install. of elig. equipment [Fed. L.330] [Que. Sc. B L.60]

Use the keyword Med-Sr-Equipment to enter qualified expenses for the purchase or lease of equipment to help seniors continue living independently at home, the date, and a brief description. The total amount entered will be reported on line 60 of Quebec Schedule B and will be used to calculate the Quebec refundable tax credit for seniors to maintain their independence claimed on line 462 (code 24).

Important: Amounts for the Quebec senior independence tax credit need to be entered in the file of the taxpayer for whom the expenses were incurred.

The amount entered will also be claimed as a federal medical expense on line 330 of Schedule 1. However, if the specific expense entered is not eligible as a federal medical expense you have to select "No" for the keyword Eligible-MedFed .

The following sub-keywords have been created for the keyword Med-Sr-Equipment :

I. Eligible-MedFed : Is this expense an allowable Federal medical expense? (Yes/No)

Use the keyword Eligible-MedFed to indicate whether or not the expense entered in Med-Sr-Equipment or Med-Sr-Rehabil is eligible to be claimed as a federal medical expense.

II. Que-Medical : Is this expense an allowable Quebec medical expense? (Yes/No)

Use the keyword Que-Medical to indicate whether or not the expense entered in Med-Sr-Equipment or Med-Sr-Rehabil is eligible to be claimed as a Quebec medical expense.

13. Med-Sr-Rehabil : Date, description and expenses incurred for a stay in a functional rehabilitation unit [Fed. L.330] [Que. Sc. B L.66]

Use the keyword Med-Sr-Rehabil to enter the expenses incurred in the year for a stay in a functional rehabilitation transition unit. The total amount entered will be reported on line 66 of Quebec Schedule B and will be used to calculate the Quebec refundable tax credit for seniors to maintain their independence claimed on line 462 (code 24).

Important: Amounts for the Quebec senior independence tax credit need to be entered in the file of the taxpayer for whom the expenses were incurred.

The following sub-keyword has been created for the keyword Med-Sr-Rehabil :

Eligible-MedFed : Is this expense an allowable Federal medical expense? (Yes/No)

Use the keyword Eligible-MedFed to indicate whether or not the expense entered in Med-Sr-Equipment or Med-Sr-Rehabil is eligible to be claimed as a federal medical expense.

14. Med-Homes-Renov : Date, description and amount of eligible home renovation expenses [Fed. L.330] (Schedule PROV(S12))

Use the keyword Med-Homes-Renov to enter the date and the eligible home renovation expenses that you are claiming for the Ontario healthy homes renovation tax credit or the British Columbia Seniors' Home Renovation Tax Credit.

The following sub-keywords have been created for the keyword Med-Homes-Renov :

I. Eligible-Med-Fed : Is this expense an allowable Federal medical expense? (Yes/No)

Use the keyword Eligible-Med-Fed to indicate whether or not the expense entered in Med-Homes-Renov is eligible to be claimed as a federal medical expense.

II. SUPPLIER-NAME : Supplier or contractor name (Schedule PROV(S12))

Use the keyword SUPPLIER-NAME to enter the name of the supplier or contractor.

III. Supplier-GST-HST : Supplier or contractor GST/HST Number (if applicable) (Schedule PROV(S12))

Use the keyword Supplier-GST-HST to enter the supplier or contractor GST/HST Number (if applicable).

15. Homes-Renov-Ass : Amount of government assistance received or receivable (Schedule PROV(S12) L.2)

Use the keyword Homes-Renov-Ass to enter the amount of government assistance received or receivable.

16. Homes-Ren-Other : Amount claimed by other eligible individuals (other than spouse) (Schedule PROV(S12) L.4)

Use the keyword Homes-Ren-Other to enter the amount claimed by other eligible individuals (other than spouse) (Schedule PROV(S12) L.4).

17. Homes-Address : Address where the home renovations were made

The following options are applicable for the keyword Homes-Address :

Renov. made at the same address as on the return
Renovation made at a different address

The following sub-keywords have been created for the keyword Homes-Address :

I. Street.s12 : Street name where the home renovations were made

Use the keyword Street.s12 to enter the street name where the home renovations were made.

II. City.s12 : City where the home renovations were made

Use the keyword City.s12 to enter the city where the home renovations were made.

III. Province.s12 : Province where the home renovations were made

Use the keyword Province.s12 to enter the province where the home renovations were made.

IV. Postal-Code.s12 : Postal code of the address where the home renovations were made

Use the keyword Postal-Code.s12 to enter the postal code of the address where the home renovations were made.

18. Elig-HomesRen-OV : Eligible to claim the home renovations expenses (Yes/No)

Use the keyword Elig-HomesRen-OV to indicate that the individual is eligible to claim the Ontario healthy homes renovation tax credit or the British Columbia Seniors' Home Renovation Tax Credit (as applicable). This entry is relevant considering that if a senior is NOT entered in the family group, DT Max will NOT claim the credit. However, considering that a non-senior CAN claim the tax credit (as long as such individual lives with a family member who IS a senior and as long as such individual paid the eligible expenses), this entry avoids having to enter a senior in the family group just for purposes of claiming the credit.

19. Resid-Address : Select the address to be used in the senior citizen's section (Section J, Part A)

The following options are applicable for the keyword Resid-Address :

Use the current address
Enter the residence address

The following sub-keywords have been created for the keyword Resid-Address :

I. Address-Resid : Residence address (Schedule J, Part A)

Use the keyword Address-Resid to enter the residence address (Schedule J, Part A).

II. PostalCode-Resid : Residence postal code (Schedule J, Part A)

Use the keyword PostalCode-Resid to enter the residence postal code (Schedule J, Part A).

20. FirstNat-Citizen : Is the taxpayer a citizen of the Self-Governing Yukon First Nation?

Use the keyword FirstNat-Citizen to indicate whether the individual is a citizen of the Self-Governing Yukon First Nation.

21. NUTRIENTMANAGEXP : Eligible nutrient management equipment expenditures incurred to meet water (Line 6136, MB479)

Use the keyword NUTRIENTMANAGEXP to enter eligible nutrient management equipment expenditures for purposes of claiming the Manitoba nutrient management tax credit.

22. Dwelling : Is the taxpayer living in a dwelling? [Sch. D L.46]

Use the keyword Dwelling to indicate whether the individual is living in a dwelling for purposes of completing question 46 of Schedule G. The following options are applicable for the keyword Dwelling :

The taxpayer lives in an eligible dwelling
The taxpayer does not live in an eligible dwelling

23. RETRIBUTION.LM : Family-type resource or an intermediate resource (LM-53)

Use the keyword RETRIBUTION.LM to generate the keyword required to produce form LM-53.

24. OtherResponsable : Is there a second person in charge? (yes/no) (LM-53 Part 2)

Use the keyword OtherResponsable to generate the keywords required to complete Part 2 of form LM-53 (if applicable). The following sub-keywords have been created for the keyword OtherResponsable :

I. Name.lm53 : Name of the second person in charge (LM-53 Part2)

Use the keyword Name.lm53 to enter the name of the second responsible person for purposes of completing part 2 of form LM-53.

II. SIN.lm53 : Social insurance number of the second person in charge (LM-53 Part 2)

Use the keyword SIN.lm53 to enter the social insurance number of the second responsible person for purposes of completing part 2 of form LM-53.

III. Retrib-Part.lm : Share of net remuneration of the second person in charge (LM-53 Part2)

Use the keyword Retrib-Part.lm to enter the share of the second responsible person for purposes of completing part 2 of form LM-53.

25. Expenses-Paid.lm : Expenses paid for the year for the services of an assistant or substitute (LM53 L.2,3 and 4)

Use the keyword Expenses-Paid.lm to enter the expenses incurred by the resource to receive assistance or be replaced in the course of the delivery of its services. The following options are applicable for the keyword Expenses-Paid.lm .

Wages and employer's contributions
Fees paid for a payroll service
Fees paid for a person's services

26. INCOME-BEF65 : Amount of income earned before reaching the age of 65 (Q391, L.2 and 4) (override)

Use the keyword INCOME-BEF65 to enter the amount of income earned before reaching the age of 65 (Q391, L.2 and 4) (override).

27. ESTIM-QUENETINC : Estimate Quebec net income of 2013 for the health contribution of the instalment calculation

Use the keyword ESTIM-QUENETINC to enter the net income for the health contribution for the calculation of instalment payments under the CURRENT-year method.

4. New options

a) The following options have been added to the keyword Progress :

i. T1013 - Authorization form - signed

This is an option associated to “an activity” in the progress of a file. You can record this information if you wish to monitor the entire tax preparation process.

ii. MR-69 - Authorization form - signed (Quebec)

This is an option associated to “an activity” in the progress of a file. You can record this information if you wish to monitor the entire tax preparation process.

b) The following option has been added to the keyword Carry-Back :

c) The following options have been added to the keyword CTB-CHILD-OV :

i. The child is in shared custody

This item allows you to indicate that the child is in shared custody. When doing so, DT Max will calculate 50% of the payment that the individual would have received if the child lived with him or her all of the time.

ii. Situation changed during the period

This item allows you to enter the situation which applies to the dependant in the period.

d) The following option has been added to the keyword CPP-QPP-Inc :

CPP/QPP post-retirement benefit [19]

This option allows you to enter post-retirement benefits reported on the T4A(P) slip.

Please note that you may once again enter the keyword CPP-QPP-Inc multiple times in the same T-Slip keyword group. This means that you can enter multiple CPP or QPP benefits (either from a single T4A(P) slip or from multiple T4A(P) slips) in the same T-Slip keyword group.

e) The following options have been added to the keyword Footnotes.t4 :

i. RL-1 [G-1] – Taxable benefit in kind

This option allows you to enter the amount of taxable benefit in kind reported in box G-1 of the RL-1 slip.

ii. Note - Amount earned before reaching the age of 65 (Q391)

This option allows you to enter the amount earned before reaching the age of 65 for purposes of calculating the tax credit for workers 65 or older.

f) The following option has been added to the keyword T-Slip :

RL-29

This option allows you to enter a RL-29 slip: Remuneration of a family-type resource or an intermediate resource.

g) The following options have been added to the keyword Inst-Estim :

i. TP1026 - Line 16 Independent living tax credit for seniors (line 462)

This item, available under the branch “Quebec TP-1026”, allows you to enter the independent living tax credit for seniors for purposes of calculating instalment payments under the CURRENT-year method.

ii. TP1026 - Line 17 Cr. for youth activities

This item, available under the branch “Quebec TP-1026”, allows you to enter the tax credit for youth activities for purposes of calculating instalment payments under the CURRENT-year method.

h) The following options have been added to the keyword Letter-Data:

i. %413 F418 RC359 - Tax on excess EPSP [$]

This option, available under the sub-branch “Federal refund or balance owing” of the branch “Federal return”, is designed to override the value associated to the Tax on excess employees profit-sharing plan amounts printed on the client letter.

ii. %414 T1014.2 - BC shipbuilding tax credit (EMP) [$]

This option, available under the sub-branch “Federal refund or balance owing” of the branch “Federal return”, is designed to override the value associated to the British Columbia shipbuilding and ship repair industry tax credit printed on the client letter.

iii. %415 Special tax on an excess amount received under a profit-sharing plan (Quebec TP-1129.RI)

This option, available under the branch “Quebec forms”, is designed to override the value associated to the Special Tax on an Excess Amount Received Under a Profit-Sharing Plan printed on the client letter.

5. Notes and reminders

a) Efile

Important reminder

Before transmitting any returns please verify that you have registered / renewed your Federal, and if applicable, Quebec Efile Number. You should also verify that the Efile Number and Password is properly reflected within your Efile Setup and that the options selected within the Efile Defaults reflect your desired preferences.

If you submit Quebec returns via Efile and generate form TP-1000, the Quebec Ministry of Revenue will require a signature on Part 3 of the form even if you have already obtained one for the MR-69 form.

Pre-bankruptcy return

Please note that you must paper file CRA's Form DC905 prior to submitting a pre-bankrupcy return to the federal government via Efile.

Quebec

Please note that Revenu Québec no longer supports the “Manual” submission method when transmitting under EFILE Online – one return per session. It has been removed from the program.

b) Demo database

Please note that the demo database "DemoClients" should be used for demonstration and learning purposes only. Please create a new database for your actual client tax returns. This is especially important under Microsoft Vista.

c) Carryforwards

As always, we recommend that you verify your carryforwards carefully before processing your client files. This is especially important if you calculated and claimed a reserve for 2011 on line B of Form T1206 (using the option "Amount of capital gains reserve for 2011" in the keyword SPLIT-INCOME ). In such case, you must re-enter this amount in 2012 in the new keyword SPLIT-CG-YEAR . By doing so, you will be able to indicate the type of shares involved. DT Max will then be able to report the reserve associated to the capital gain on the appropriate line of Schedule 3 (if applicable).

d) Changes to the Quebec sales tax (QST)

Pursuant to the harmonization of the Quebec sales tax (QST) with the goods and services tax (GST), as of January 1, 2013, the QST is calculated directly on the selling price not including GST. To maintain the same level of QST currently collected on each sale, the QST rate was raised from 9.5% to 9.975%.

To reflect the aforementioned change to the QST in your billing, you must implement the following changes within your billing preferences by default (your billing preferences are located under the menu Preferences in DT Max.) Under the Tax information tab of the Automatic billing setup, remove the check mark next to Apply GST before applying PST, then change the PST rate to 9.975%. Finally, click on the "OK" button to save these changes in the program. Note that your billing preferences for previous tax years do not need to be changed.

6. DT Max references

Please refer to these knowledge base topics for a detailed review of tax changes implemented:

7. Messages from CRA

1. Direct deposit

Direct deposit is the fastest way to get your money. It is also convenient, easy, and secure. Don't delay - sign up today at https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/direct-deposit.html

2. NETFILE Web Access Code

The Canada Revenue Agency has eliminated the requirement for the NETFILE Web Access Code (WAC). The WAC was the four-digit personalized code printed on the information sheet of the T1 personal income tax return package. You will still be able to use NETFILE to file your 2012 individual Income tax and benefit returns. The only information you now require, to access the NETFILE, is your Date of Birth (DOB) and your Social Insurance Number (SIN).

8. Messages from Revenu Québec

i. Changing Your Income Tax Return Information Online

Did you know that you can make a request online to change your income tax return information?

Once you have received your notice of assessment, you can use the Request to Change Income Tax Return Information online service. Available in My Account, this user-friendly service reduces processing time and provides you with acknowledgement of receipt of your request. Several tax return lines can be changed, including

line 130 – Interest and other investment income;
line 214 – RRSP deduction; and
line 381 – Medical expenses.

Register for My Account!

My Account is a secure, personalized space where you can access several practical online services. For example, you can

view and change your income tax return information;
track the processing of your income tax return;
view your notice of assessment; and
register for direct deposit.

For more information about My Account or to register, click MY ACCOUNT FOR INDIVIDUALS.

ii. Deceased persons and bankruptcy returns for 2012

Starting in February (date to be confirmed), the tax returns for deceased persons as well as bankruptcy returns for tax year 2012 that are filed with the 2011 version of DT Max will no longer be accepted by Revenu Québec. Returns that are received from this day onward will be sent back along with a notification advising that the returns be filed with version 16.01 and subsequent.

iii. Do you really want to print this return?

The NetFile Québec online filing service will quickly send you confirmation of receipt.

3.5 million people have already used this easy, effective and environmentally-friendly service.

To track the processing status of their income tax returns at any time, your client can use My Account, which is available on our website at www.revenuquebec.ca.

iv. Tax Data Download service

The Tax Data Download module will be integrated in an upcoming version of DT Max, which will be made available before March 7, 2013, the beginning date of the service. For taxation year 2012, the same data will be available for download as for last year. Therefore, the RL-1, 2, 3, 5, 6, 7, 8, 10, 16, 19, 22, 25 and 26 slips, the RC62, T4A(OAS) and T4E slips, as well as the information on instalment payments and interest paid by Revenu Québec will again be available for download. In addition, the RL-29 slip, which was added by Revenu Québec, will also be available for download.

v. Quebec EFILE

If the taxpayer has a balance due which is greater than or equal to $2, he or she must indicate whether he or she wishes to pay it within the next 5 days or at a later date. Furthermore, he or she must specify the method of payment, should the balance due be paid within the next 5 days.

Use the keyword Que-Paid-Time in the Enclosed keyword group to indicate when the taxpayer will pay the balance due, otherwise the applicable efile fields' entries will be based on the selection(s) made within the user's default settings.

DT Max T2

1. Program certification

Alberta

DT Max T2 version 16.10 has received full certification for the RSI (Return and Schedule Information), as well as for the Net File module that allows the electronic filing of Alberta corporate tax returns, from Alberta's Tax and Revenue Administration (TRA) under the DT26 stamp.

2. Version highlights

a) Schedule 32 (T661): Changes affecting certain line numbers

Please note that changes have been made to certain line numbers on federal Schedule 32 (T661), “Scientific Research and Experimental Development (SR&ED) Expenditures Claim”.

The following line numbers have been modified as such:

Line 513: accessed via source keyword Assist-ITC.r and the option “Provincial government assistance”, for current expenditures.
Line 514: accessed via source keyword Assist-ITC.r and the option “Provincial government assistance”, for capital expenditures.
Line 515: accessed via source keyword Assist-ITC.r and the option “Other government assistance”, for current expenditures.
Line 516: accessed via source keyword Assist-ITC.r and the option “Other government assistance”, for capital expenditures.
Line 517: accessed via source keyword Assist-ITC.r and the option “Non-government assistance”, for current expenditures. Also accessed via Assist-Con for current expenditures.
Line 518: accessed via source keyword Assist-ITC.r and the option “Non-government assistance”, for capital expenditures. Also accessed via Assist-Con for capital expenditures.

Keep in mind that all SR&ED returns with a fiscal year ending after 2011 and calculated/filed with a previous version may have a different result if calculated using version 16.10. Therefore, we recommend that you verify your returns carefully and bring the appropriate adjustments, if applicable.

3. New forms

Alberta:

AT1 Schedule 9 - Alberta Scientific Research and Experimental Development (SR&D) Tax Credit - Supplemental

4. Revised forms

Federal:

T2WS1 – Worksheet 1 – Calculating Estimated Tax Payable and Tax Credits (N. B. This form provides no calculation support)

Quebec:

CO-17 - Corporation Income Tax Return (N.B. An English version of this form is now available)
CO-1029.8.36.EL - Tax Credit for Book Publishing (N.B. An English version of this form is now available)
CO-1029.8.36.PM - Tax Credit for Corporations Specialized in the Production of Multimedia Titles
COZ-1179 - Logging Operations Return
MR-93.1.1 - Notice of Objection

Alberta:

AT1 Schedule 9 – Alberta Scientific Research and Experimental Development (SR&D) Tax Credit

5. New keywords

a) For the keyword group R&DPreparer, pertaining to the Alberta Schedule 9 (Alberta Scientific Research and Experimental Development (SR&D) Tax Credit):

i) Title.p : Title of tax preparer who prepared the SR&ED claim

Use the keyword Title.p to enter the title of the tax preparer who completed the SR&ED form.

ii) Firm.p : Name of the firm who prepared the SR&ED claim, if applicable

Use the keyword Firm.p to enter the name of the firm who completed the SR&ED form, if applicable.

iii) Phone.p : Phone number of the tax preparer who prepared the SR&ED claim

iv) Date.p : SR&ED claim date

Use the keyword Date.p to enter the SR&ED claim date.

6. New options

a) For the keyword SR&ED.his , pertaining to the Alberta Schedule 9 (Alberta Scientific Research and Experimental Development (SR&D) Tax Credit):

DT Max T3

1. Program certification

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

2. Version highlights

a) 5 new types of trusts

The following five new types of trusts have been added to the T3 program:

The Environmental Quality Act trust

As per the federal T3 Trust guide for 2012:

"A trust under paragraph 149(1)(z.1) of the Act. This is a trust that was created because of a requirement imposed by section 56 of the Environment Quality Act. The trust must meet the following conditions:
- the trust is resident in Canada; and
- the only persons that are beneficially interested are:
The Nuclear Fuel Waste Act trust

As per the federal T3 Trust guide for 2012:

"A trust under paragraph 149(1)(z.2) of the Act. This is a trust that was created because of a requirement imposed by subsection 9(1) of the Nuclear Fuel Waste Act. The trust must meet the following conditions:
- the trust is resident in Canada; and
- the only persons that are beneficially interested are:
The real estate investment trust (REIT)

As per the federal T3 Trust guide for 2012:

"A trust is a real estate investment trust (REIT) for a taxation year, if it is resident in Canada throughout the year and meets a number of other conditions, including the requirement that the trust derives at least 75% of its revenues from rent from, and capital gains from the dispositions of, real or immovable property, and interest from mortgages on real or immovable property. A SIFT (specified investment flow through) trust does not include a real estate investment trust (REIT).
- the rent from real or immovable properties;
- interest;
- capital gains from dispositions of real or immovable properties;
- dividends; and
- royalties."
The Health & Welfare trust (HWT)

As per the federal T3 Trust guide for 2012:

"Health and welfare benefits for employees are sometimes provided through a trust arrangement under which the trustees receive the contributions from the employer(s), and in some cases from employees, to provide such health and welfare benefits as have been agreed to between the employer and the employees. To qualify for treatment as a HWT, the funds of the trust cannot revert to the employer or be used for any purpose other than providing health and welfare benefits for which the contributions are made. In addition, the employer's contributions to the fund must not exceed the amounts required to provide these benefits. Further, to qualify for treatment as a HWT, the payments by the employer cannot be made on a voluntary or gratuitous basis - they must be enforceable by the trustees should the employer decide not to make the payments required. This arrangement is restricted to the following:
- a group sickness or accident insurance plan;
- a private health services plan;
- a group term life insurance policy; or
- any combination of (a) to (c).

For more information, see Interpretation Bulletin IT-85R2, Health and Welfare Trusts for Employees."
The Pooled Registered Pension Plans

As per the federal T3 Trust guide for 2012:

"Under proposed changes, Pooled Registered Pension Plans will generally be treated as a trust for tax purposes, the administrator is the trustee and the members are the beneficiaries. A pooled registered pension plan trust will be excluded for purposes of the 21 year deemed disposition rule and other specified measures. In addition, when certain criteria are met, a pooled registered pension plan trust will be exempt from Part 1 tax."

b) New Quebec Identification Number

Beginning in 2012, all trusts will be assigned a new identification number. This 10-digit number, which will be shown on all notices of assessment issued to trusts, will have to be indicated on any TP-646 trust income tax return, RL-16 slip and other written document submitted to Revenu Québec.

For 2012, DT Max T3 will retain all existing 12-character Trust account numbers for those who have already filed the 2012 trust return with the previous years' forms.

TP-646 Trust returns being filed with version 16.10 must have their existing number changed for the new 10-digit number assigned.

c) RL-16

As per the TP-646 guide, in the case of a succession, the name of the trust displayed on the RL-16 slip will be preceded by "Succession of" rather than by "Estate of".

Due to the government changes and the 2DBC requirements, the section for the name and address of the beneficiary and the trustee has been modified. New keywords have been added to accommodate these changes (see the New keywords section).

d) TP-646.R

A trustee (or the representative of a trustee) who wishes to make changes to a trust income tax return that has already been filed may now request an adjustment using form TP-646.R-V, Request for an Adjustment to a Trust Income Tax Return. Filing an amended return will no longer be necessary. However, if the requested adjustment changes the allocation of income to the trust's beneficiaries, you must enclose with form TP.646.R-V an amended Schedule C and amended RL-16 slips.

e) Taxation of trust not resident in Canada

The Quebec budget tabled on March 19, 2012, announced that inter vivos trusts that do not reside in Canada will now be liable for Quebec tax on its property income derived from the rental of specified immovables at a rate of 5.3%. This tax will apply to a taxation year ending after March 19, 2012, and if the taxation year includes March 19, 2012, the tax will be accordingly prorated. The Quebec Schedule F, which will be available in the next T3 version of DT Max, has been introduced to calculate this new tax.

Definition taken from the T3 guide:

"A specified immovable is an immovable (including a right in such an immovable or an option on such an immovable) held by a specified trust or a partnership of which the specified trust is a member. The immovable must be located in Quebec and used mainly for the purposes of earning gross revenue that constitutes rent.

A specified trust for a given taxation year is an inter vivos trust that is not resident in Canada at any time during the year and is not tax-exempt."

3. Warning: verifying carryforwards

As always, we recommend that you verify your carryforwards carefully before processing your client files.

4. New forms

Quebec:

TP-646.R - Request for an Adjustment to a Trust Income Tax Return

In-house:

- TP-1129.53 - Income Tax Return for Environmental Trusts

5. Revised forms

Federal:

- T3 - Trust Income Tax Return

- All provincial tax calculation schedules (T3AB, T3MB, T3NB...)

- Schedule 1 - Dispositions of Capital Property

- Schedule 1A - Capital Gains on Gifts of Certain Capital Property

- Schedule 2 - Reserves on Dispositions of Capital Property

- Schedule 3 - Eligible Taxable Capital Gains

- Schedule 4 - Cumulative Net Investment Loss

- Schedule 5 - Spousal or Common-Law Partner Trust's Capital Gains Deduction in Year of Beneficiary's Death

- Schedule 6 - Trusts' Agreement to Allocate the Basic Exemption from Minimum Tax

- Schedule 7 - Pension Income Allocations and Designations

- Schedule 8 - Investment Income, Carrying Charges, and Gross-up Amount of Dividends Retained by the Trust

- Schedule 9 - Income Allocations and Designations to Beneficiaries

- Schedule 10 - Part XII.2 Tax and Part XIII Non-Resident Withholding Tax

- Schedule 11 - Federal Income Tax

- Schedule 12 - Minimum Tax

- NR4 Slip and summary

- T3 Slip and summary

- TX19 - Asking for a Clearance Certificate

- T3-RCA - Retirement Compensation Arrangement (RCA) Part XI.3 Tax Return

- T3MJ - T3 Provincial and Territorial Taxes for 2012 - Multiple Jurisdiction

- T3M - Environmental Trust Income Tax Return

- T184 - 2012 Capital Gains Refund to a Mutual Fund Trust

- T776 - Statement of Real Estate Rentals

- T1013 - Authorizing or Cancelling a Representative

- T1139 - Reconciliation of 2012 Business Income for Tax Purposes

- T2036 - Provincial or Territorial Foreign Tax Credit

- T2209 - Federal Foreign Tax Credits

Quebec:

- TP-646 - Trust Income Tax Return

- Schedule A - Taxable Capital Gains and Designated Net Taxable Capital Gains

- Schedule B - Investment Income, Gross-Up of Dividends Not Designated and Adjustment of Investment Expenses

- Schedule C - Summary of Allocations and Designations

- Schedule D - Carry-Back of a Loss

- Schedule E - Income Tax on the Taxable Distributions Amount and Calculation of Eligible Dividends to Be Designated

- RL-16 Slip

- MR-14.A - Notice Before Distribution of the Property of a Succession

- MR-14.B - Notice Before Distribution of Property

- MR-69 - Power of Attorney, Authorization to Communicate Information, or Revocation

- TP-128.F - Income Earned by a Trust from the Rental of Immovable Property

- TP-274.F - Designation of Property as a Principal Residence of a Personal Trust

- TP-274.S - Reduction of the Capital Gain Deemed to Have Been Realized on a Principal Residence

- TP-653 - Deemed Sale Applicable to Certain Trusts

- TP-668.1 - Taxable Capital Gains of a Trust That Give Entitlement to a Deduction

- TP-750 - Income Tax Payable by a Trust Resident in Québec That Carries On a Business in Canada, Outside Québec, or by a Trust Resident in Canada, Outside Québec, That Carries On a Business in Québec

- TP-772 - Foreign Tax Credit

- TP-776.47 - Alternative Minimum Tax of a Trust

- TP-1012.B - Carry-Back of a Deduction or Tax Credit

- TP-1031.1 - Election by a Trust to Pay in Instalments the Income Tax Resulting from a Deemed Sale Applicable to Certain Trusts

- TP-1129.53 - Income Tax Return for Environmental Trusts

- TP-80.1 - Calculation of Business or Professional Income, Adjusted to December 31

- TP-1086.R.23.12 - Costs Incurred for Work on an Immovable

In-house:

- TP-128.F - Rental of Immovable Property Summary (5 years)

6. Forms under review

Federal:

- T1134A - Information Return Relating to Foreign Affiliates That are Not Controlled Foreign Affiliates (2003 and later taxation years)

- T1134B - Information Return Relating to Controlled Foreign Affiliates (2003 and later taxation years)

Note: Forms T1134A and T1134B have been replaced by the single form T1134. This form will be available in the next T3 version.

- T1163 - 2012 Statement A - AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals

- T1164 - 2012 Statement B - AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals

- T1172 - Additional Tax on Accumulated Income Payments from RESPs

- T1175 - 2012 Farming - Calculation of Capital Cost Allowance (CCA) and Business-Use-of-Home Expenses

- T1273 - Statement A - Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals

- T1274 - Statement B - Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals

- T2038 - Calculating an Investment Tax Credit (ITC)

- T2042 - Statement of Farming Activities

- T2121 - Statement of Fishing Activities

- T2125 - Statement of Business or Professional Activities

Quebec:

- Schedule F - Income Tax Payable by a Specified Trust for a Specified Immovable

- TP-80 - Business or Professional Income and Expenses

7. New keywords

For the keyword group T3-Adjust, pertaining to the TP-646 Quebec Trust Income Tax Return:

DT-ImportQueDiff : Import automatically the Quebec difference with the Quebec "As-filed" snapshot copy

Use DT-ImportQueDiff to indicate whether or not DT Max should automatically compare the changes brought to the TP-646 Quebec return with the Quebec "As-filed" snapshot copy for the current tax year. DT Max will automatically import for each modified line the amounts claimed on the "As-filed" snapshot as well as the new modified amounts on the adjusted return.

If you choose to re-import the difference, you must re-select the option "yes". This will update all keywords in the T3-Adjust group.

This new DT Max feature is available for tax year 2012 onward and allows you to calculate the impact of the changes made to the adjusted return compared to the "As-filed" snapshot copy of the return. To use this feature, simply follow these steps:
1. Make sure that you have an "As-filed" snapshot copy of the return for the relevant year (see "As-filed snapshot"). You may view the "As-filed"snapshot copy of the return when you select "As-filed - Quebec" instead of "Production" in the "Tax return" display screen. Please contact the Support group for more information if you don't have an "As-filed" snapshot copy of the return.
2. Modify the data directly in the adjusted version in order to reflect the new information that modifies the tax return.
3. Recalculate the client's return. Following the changes that were made, new amounts will be carried forward automatically to the following tax year. If information has already been entered in the following tax year, the client's status will indicate "Review required" and the new carryforwards will be displayed on the right-hand side as "Calculated carryforwards" and you will have to copy those new carryforwards manually from right to left.
4. Go back to the data entry screen for tax year 2012 or subsequent, use the keyword T3-Adjust and choose "Quebec TP-646". Choose "Yes" for the new keyword DT-IMPORTQUEDIFF.
5. The line numbers, the line titles, the prior amounts and the corrected amounts will appear automatically in the T3-Adjust group. Enter the other information if necessary, particularly the details of the adjustment that you are requesting, and recalculate the return in order to print and file the TP-646.R form. You must provide the supporting documents for the total adjusted amount.
In the Beneficiary keyword group:

Beneficiary-Type : Type of beneficiary holding a joint account

Use the keyword Beneficiary-Type to indicate whether the other beneficiary holding the joint account is an individual or not.

If the other beneficiary is an individual, the name and social insurance number will be captured on the RL-16 slip.
In the Trustee keyword group, pertaining to the Quebec TP-646 Trust Income Tax Return:

Id-Number.tr : Identification number of trustee or liquidator of the succession

Use the keyword Id-Number.tr to enter the identification number of the trustee or the liquidator of the succession.
In the T3-Adjust keyword group, pertaining to Quebec form TP-646.R, "Request for an Adjustment to a Trust Income Tax Return":
1. MR-69.adj : Indicate whether a valid MR-69 form is enclosed with adjustment
  
  Use the keyword MR-69.adj to indicate whether a valid MR-69 form (or similar document) for the year concerned has been enclosed or was already filed.
2. Authorize.adjQ : Person or firm requesting the adjustment
  
  Use the keyword Authorize.adjQ to identify the person or firm requesting the adjustment.
3. Line-Number.q : Line number of the jacket regarding the adjustment
  
  Use the keyword Line-Number.q to enter the line number of the jacket regarding the adjustment on form TP-646.R.
In the keyword groups Trustee and Beneficiary, pertaining to the Quebec RL-16 slip:
1. Street-Ln2 : Name of the street
  
  Use the keyword Street-Ln2 if a second line is required to enter the address.
In the keyword group Beneficiary , pertaining to the Quebec RL-16 slip:
1. Name-Ln2 : Name of the beneficiary
  
  Use the keyword Name-Ln2 to enter the first name of the beneficiary or if a second line is required to enter the beneficiary's name.
2. Name-Ln1.j : Last name or business name of joint account holder
  
  Use the keyword Name-Ln1.j to enter the family name or the business name of the joint account holder. This name will be printed on the RL-16 slip.
3. Name-Ln2.j : First name or business name of joint account holder
  
  Use the keyword Name-Ln2.j to enter the given name or the business name of the joint account holder. This name will be printed on the RL-16 slip.
4. SIN.j : Social insurance number of the spouse
  
  Use the keyword SIN.j to enter the spouse's social insurance number.

8. New options

a) For the keyword Other-credits in the Tax-Credits group, pertaining to line 91 of the federal T3 Trust Income Tax Return:

Nutrient management tax credit

b) For the keyword Beneficiary-Type in the Beneficiary group:

c) For the keyword Trust-Type in the Trust keyword group:

February 5, 2013

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In this version...

About your DT Max licence key

DT Max T1

1. Program certification

2. Version highlights

a) New diagnostics

i. Notes and diagnostics

ii. Error prevention report

b) Ontario child benefit

c) Filtering on processing statuses

3. New keywords

4. New options

5. Notes and reminders

a) Efile

b) Demo database

c) Carryforwards

d) Changes to the Quebec sales tax (QST)

6. DT Max references

7. Messages from CRA

8. Messages from Revenu Québec

DT Max T2

1. Program certification

2. Version highlights

a) Schedule 32 (T661): Changes affecting certain line numbers

3. New forms

4. Revised forms

5. New keywords

6. New options

DT Max T3

1. Program certification

2. Version highlights

a) 5 new types of trusts

b) New Quebec Identification Number

c) RL-16

d) TP-646.R

e) Taxation of trust not resident in Canada

3. Warning: verifying carryforwards

4. New forms

5. Revised forms

6. Forms under review

7. New keywords

8. New options