The latest DT Max program update is now available for downloading. It features the fully functional T1/TP-1 program for tax years 2001 to 2012 and fully supports T1/TP-1 Efile. Installing this version will update your version of DT Max to 16.20. Please note that all program versions are always made available on the Internet. In this version...
1. Known issues fixed in version 16.20
2. New diagnostics 3. Calculation of the tax for failure to acquire replacement shares in a labour sponsored fund 4. Q452 work chart 5. Q445 work chart for an individual who turned 18 years of age during the tax year 6. Client letter 7. RC71 - Statement of Discounting Transaction 1. Known issues fixed in version 16.20
2. New diagnostics
FEDERAL EFILE : Ineligible for federal efile Due to the reason below, this return is ineligible for federal efile: The taxpayer is claiming a special tax for failure to reacquire certain shares on line 418 of Schedule 1. Q201 - Deduction for workers If the following employment income consists solely of taxable benefits that the individual received from previous employment. Use the keyword Footnotes.t4 , select the option “RL-1 211 - Benefit related to previous employment” and enter the amount from Box A of the RL-1. This diagnostic will be produced when, at the same time, employment income consists solely of taxable benefits AND box 211 of the RL-1 slip was not entered. If such taxable benefits relate to previous employment, according to the Guide to Filing the RL-1 Slip, the RL-1 slip should normally reflect this situation via box 211. However, Revenu Québec's guide indicates at line 201 that the following income should not be included: "employment income consisting solely of taxable benefits that you received from previous employment (this amount may be shown in box 211 of your RL-1 slip)". It is therefore nevertheless possible that this amount is not reported in box 211 of the RL-1 slip. In such case, you must establish if this employment income (consisting solely of taxable benefits) is from previous employment and if so, enter the amount from box A under option "RL-1 211 – Benefit related to previous employment".
3. Calculation of the tax for failure to acquire replacement shares in a labour sponsored fund
Please note that DT Max now calculates the federal special tax that corresponds to the Quebec special tax associated with the non-acquisition of replacement shares in a labour-sponsored fund (e.g. FTQ). This measure has been implemented as a result of changes to the income tax system and applies as of October 24, 2012. You are not required to enter any particular keyword to calculate this penalty. When you enter an RL-10 slip to account for such a situation in DT Max, the program will carry over the amount of the special tax (from box F, L1 and/or L2 as applicable) on line 418 of federal Schedule 1. The provision, as it is currently stated in the Income Tax Act, considers the Quebec special tax for purposes of calculating this new federal special tax. However, this approach ignores the possibility that the Quebec special tax amount might be calculated based on a rate of 25% (rather than a rate of 15%), thus canceling a tax credit previously granted based on the higher rate. Given that this inconsistency in the implementation of this measure will soon be rectified retrospectively, DT Max converts any Quebec special tax amount established according to a rate of 25% to a special federal tax established according to a rate of 15%. Finally, as per the CRA's limitations, when your client reports this type of special tax, his or her return will not be eligible for efiling. Therefore, DT Max will generate a diagnostic in this regard in the Notes and diagnostics.
4. Q452 work chart
A new in-house work chart has been created to calculate the Quebec Pension Plan (QPP) or the Canada Pension Plan (CPP) contributions overpaid when the individual is at least 65 years of age but under 70, receives a QPP or CPP retirement pension and elects to stop contributing to the CPP, as per Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election.
5. Q445 work chart for an individual who turned 18 years of age during the tax year
Please note that Work chart 445 from Revenu Québec is not suitable to calculate the theoretical contributions to the Quebec Pension Plan (QPP) in situations where the individual turned 18 during the tax year. Specifically, line 10 of this work chart does not take into consideration that pensionable salary for an individual who turned 18 during the year may be less than the amount on line 101 of his return when a portion of his employment income was earned before the age of 18. Therefore, when this situation occurs, DT Max will carry over the amount from line 98.1 (and from line 96.1, if applicable) of the return to line 14 of Work chart 445.
6. Client letter
Please note that henceforth information entered in the keyword Care-of will be carried over to the client letter. Further to this change, a new variable was created in the keyword Letter-Data under the section Client identification. This new variable (called 417% Care of [0 = No, 1 = Yes]) allows users to enter data pertaining to the keyword Care-of in the client letter.
7. RC71 - Statement of Discounting Transaction
Adaptations have been made to DT Max to incorporate the changes in sales taxes which will be effective April 1, 2013. More precisely, in the case of British Columbia, it involves the return to the provincial sales tax (PST) system whereas in the case of Prince Edward Island, it involves the transition from the PST to the harmonized sales tax (HST). Therefore, as long as you reflect the changes that will come into force by updating the rates in your preferences with the new rates that will be applicable, DT Max will properly calculate Form RC71, Statement of Discounting Transaction. April 2, 2013 |
