  What's new for T1/T3 Internet version 16.12? |
The latest DT Max program update is now available for downloading. It features the T1/TP-1 program for the tax years 2001 to 2012 inclusively, fully supports T1/TP-1 EFILE and also includes an update of the System components as well as the Knowledge base. Installing this version will update your version of DT Max to 16.12.
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
1. Known issues fixed in version 16.12
2. Calculation of CPP contributions for individuals who work while receiving their CPP retirement pension
Please note that the calculation of Canada Pension Plan (CPP) contributions can now be done for individuals who work (outside Quebec) while receiving CPP or Quebec Pension plan retirement benefits. More precisely, the calculation of the basic exemption for such working beneficiaries is done on our new in-house worksheet entitled CPP/QPP – Basic CPP/QPP exemption.
3. Quebec Tax Data Download
An update was made to address a technical problem that was preventing the download of data in the program.
DT Max T3
1. Version highlights
- Taxation of trust not resident in Canada
A specified trust is an inter vivos trust that is not resident in Canada at any time in the taxation year and is not tax-exempt.
If the trust is a specified trust that owns a specified immovable, use the keyword QC-SpecifiedTrust in the Trust group to check box 12 on line 9 of the Quebec Trust Income tax return.
A specified trust whose taxation year ends after March 19, 2012, must pay income tax at a rate of 5.3% on the property income derived from the rental of a specified immovable that the trust owns or that a partnership of which the trust is a member owns.
The trust has to file its income tax return and complete Schedule F every year, regardless of whether it is required to pay income tax.
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 purpose of earning gross revenue that constitutes rent.
In DT Max T3, use the keyword SpecifiedImmovable within the Business rental group to indicate whether the immovable is a specified immovable. Use the keyword Specified-Immov within the Partnership group to indicate whether it is a specified immovable held by a partnership of which the specified trust is a member.
If the trust becomes resident in Canada while it is the owner of a specified immovable, it will be deemed to have disposed of the immovable immediately before becoming resident in Canada, and to have reacquired it at a price equal to the proceeds of disposition of the immovable.
- 2013 tax brackets and rates
All federal and provincial tax rates have been updated in DT Max T3 for 2013. The rates are based on information available as of March 1st, 2013.
Quebec has introduced a new tax bracket, for 2013, of 25.75% for taxable income over $100,000 for testamentary or grandfathered inter vivos trusts. As the rate for determining the income tax payable by inter vivos trusts, including mutual fund trusts and specified investment flow-through trusts, corresponds to the highest rate applicable, the rate for 2013 will be increased from 24% to 25.75%.
This new tax bracket and rate will be reflected only in the calculation of income tax for Quebec on page 3 of the TP-646 Trust Income Tax return until the new 2013 form becomes available from the government.
Please refer to the DT Max Knowledge base for additional details on the new federal and provincial tax rates.
- 2013 Quebec Alternative Minimum Tax
To reflect the fact that the maximum marginal tax rate for taxable capital gains will be raised from 24% to 25.75%, the proportion of capital gains realized that must be taken into account in the calculation of adjusted taxable income will be raised from 75% to 80% as of the 2013 taxation year. Therefore, the difference between the applicable rate for AMT purposes, 75%, and the capital gains inclusion rate, 50%, is 30%. This rate will now be used in section 1.2 of the TP-776.47 "Alternative Minimum Tax of a Trust" for 2013.
- T3 billing module
The T3 billing module has been updated to incorporate the new 2012 forms.
Please verify the automatic billing setup under the menu Preferences.
2. Warning: verifying carryforwards
As the T1134A and T1134B have been replaced by Form T1134, we highly recommend that anyone who may have entered the foreign information with a prior version review the group for any missing information. Substantial changes were made to the Foreign-Info group and entries should therefore be reviewed carefully.
As always, we recommend that you verify your carryforwards carefully before processing your client files.
3. New forms
Federal:
- T1134 - Information Return Relating To Controlled and Not-Controlled Foreign Affiliates
This revised form T1134 is a combination of former forms T1134A and T1134B.
One summary sheet must be completed for each reporting entity. A separate supplement must be completed for every foreign affiliate.
This form must be filed annually by a taxpayer resident in Canada for which a non-resident corporation or trust is a foreign affiliate (FA) or a controlled foreign affiliate (CFA) at any time in the year.
This return is to be filed by a reporting entity only in respect of a foreign affiliate in which the reporting entity or a controlled foreign affiliate of the entity has a direct equity percentage at any time in the reporting entity's taxation year.
Quebec:
In-house:
- Income Tax Payable by a Non-Resident Trust That has Taxable Income in Quebec
4. Revised forms
Federal:
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 Additional Farming Operations
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 - 2012 STATEMENT B - Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Additional Farming Operations
T2038 - Calculating an Investment Tax Credit (ITC)
T2042 - Statement of Farming Activities
T2121 - Statement of Fishing Activities
Quebec:
5. Deleted forms
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)
6. New keywords
- For the keyword group Trust , pertaining to the Quebec form TP-646.F – Schedule F (Income Tax Payable by a Specified Trust For a Specified Immovable):
QC-SpecifiedTrust : Indicate whether trust is a specified trust
Use the keyword QC-SpecifiedTrust to indicate whether the trust is a specified trust.
A specified trust is an inter vivos trust that is not resident in Canada at any time during the year and is not tax-exempt.
This information is required for the TP-646 trust return. If the trust is a specified trust, the appropriate box will be ticked on the first page of the Quebec trust income tax return. This keyword must be entered in order to generate other keywords relating to specified immovables within the Partnership or the Business (rental) group.
- For the keyword group Business , pertaining to the Quebec form TP-646.F – Schedule F (Income Tax Payable by a Specified Trust For a Specified Immovable):
SpecifiedImmovable : Indicate whether the immovable is a specified immovable
Use the keyword SpecifiedImmovable to indicate whether the immovable is a specified immovable.
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 purpose of earning gross revenue that constitutes rent.
DT Max will enter any property income derived from the rental of a specified immovable and calculate the income tax payable on that income, at a rate of 5.3%, on Schedule F of the Quebec trust income tax return.
- For the keyword group Partnership , pertaining to the Quebec form TP-646.F – Schedule F (Income Tax Payable by a Specified Trust For a Specified Immovable):
Specified-Immov : Indicate whether the immovable is a specified immovable
Use the keyword Specified-Immov to indicate whether the immovable is a specified immovable.
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 purpose of earning gross revenue that constitutes rent.
DT Max will enter any property income derived from the rental of a specified immovable and calculate the income tax payable on that income, at a rate of 5.3%, on Schedule F of the Quebec trust income tax return.
- For the keyword group Foreign-Info , pertaining to the federal form T1134 (Information Return Relating To Controlled and Not-Controlled Foreign Affiliates):
- Corp-Name.t1134 : Name of related corporation
Use the keyword Corp-Name.t1134 to list the name of the corporation that is not dealing at arm's length with the reporting entity.
This information will be entered in Table A of Part I, section 3 of form T1134.
- Corp-Res-Code : Country code of residence of corporation
Use the keyword Corp-Res-Code to enter the country code of residence of the corporation.
This information will be entered in Table D of Part I, section 3 of form T1134.
- Partnership-Name : Name of partnership
Use the keyword Partnership-Name to list the name of each partnership of which the foreign affiliate is a member.
This information will be entered in Table D of Part I, section 3 of form T1134.
- Part-Address-Ln1 : Line 1 of partnership address
Use the keyword Part-Address-Ln1 to enter the address of the partnership.
This information will be entered in Table D of Part I, section 3 of form T1134.
- Part-Address-Ln2 : Line 2 of partnership address
Use the keyword Part-Address-Ln2 to enter the second line of the address of the partnership.
This information will be entered in Table D of Part I, section 3 of form T1134.
- Part-CountryCode : Country code of country of location of partnership
Use the keyword Part-CountryCode to enter the country code of the business location of the partnership of which a foreign affiliate is a member.
This information will be entered in Table D of Part I, section 3 of form T1134.
- Foreign-Aff-Name : Name of foreign affiliate
Use the keyword Foreign-Aff-Name to enter the name of the foreign affiliate.
This information will be entered in either Table A or D of Part I, section 3 of form T1134.
- For-Aff-Code : Country code of residence of foreign affiliate
Use the keyword For-Aff-Code to enter the country code of the residence of the foreign affiliate.
This information will be entered in Table A of Part I, section 3 of form T1134.
- Oth-For-Aff-Name : Name of other foreign affiliate
Use the keyword Oth-For-Aff-Name to enter the name of the other foreign affiliate.
This information will be entered in Table B of Part I, section 3 of form T1134.
- Oth-For-Aff-Code : Country code of residence of other foreign affiliate
Use the keyword Oth-For-Aff-Code to enter the country code of the residence of the other foreign affiliate.
This information will be entered in Table B of Part I, section 3 of form T1134.
- Equity% : Equity percentage in foreign affiliate
Use the keyword Equity% to enter the equity percentage in the foreign affiliate.
This information will be entered either in Table A or B, whichever is applicable, of Part I, section 3 of form T1134.
- Direct-Equity% : Direct equity percentage in the foreign affiliate
Use the keyword Direct-Equity% to enter the direct equity percentage in the foreign affiliate
This information will be entered either in Table A or B, whichever is applicable, of Part I, section 3 of form T1134.
- For-Aff-Interest% : Foreign affiliate's interest percentage in the partnership
Use the keyword For-Aff-Interest% to enter the foreign affiliate's interest percentage in the partnership.
This information will be entered in Table D of Part I, section 3 of form T1134.
- FS-AMOUNT : Amount from the financial statement
Use the keyword FS-AMOUNT to enter the amounts from the unconsolidated financial statements (including the notes to the financial statements) of the foreign affiliate.
The total assets reported should be net of depreciation or amortization. The net income should be accounting net income. Tax paid or payable should be the actual tax paid or payable and not deferred tax. Do not include withholding tax.
This information will be entered in Part II, Section 3 - Financial information of the foreign affiliate, of form T1134.
- Elect-Currency : State the currency code of the functional currency
Use the keyword Elect-Currency to state the alphabetic currency code of the functional currency, if an election has been made to use functional currency.
Monetary values should be reported in Canadian dollars except where an election has been made under paragraph 261(3)(b) of the Act to use a functional currency. The currency code will be indicated on the top of page 1 of the T1134 Summary.
- Short-Year : Whether taxation year includes 2 or more short taxation years
Use the keyword Short-Year to indicate whether the taxation year includes 2 or more short taxation years.
For short taxation years (e.g. where there is a deemed year-end due to a change in control), reporting for more than one fiscal period (not exceeding the normal 12-month or 53-week period) is sufficient if the information that would otherwise be reported for the short taxation year is included on the T1134 returns that are filed.
- FILER-ID : CRA registered identification number (SIN, BN, other)
Use the keyword FILER-ID to enter the CRA registered identification number (SIN, BN, other) of the taxpayer reporting Section 3 if it is filed by a taxpayer or partnership other than the reporting entity.
- Org-Structure : Organization structure
Use the keyword Org-Structure if you are reporting on one or more "Controlled" Foreign Affiliates as defined in subsection 98(1) of the Act. You only have to produce the information once for a group of persons that are related to each other.
- Currency-Code.gr : Currency code of foreign affiliate's gross revenue
Use the keyword Currency-Code.gr to enter the currency code of the foreign affiliate's gross revenue.
7. New options
March 6, 2013
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