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Print this pageForward this document  What's new for T1/T3/T5013 Internet version 21.13?

The latest DT Max program update is now available for downloading. It features the T1/TP-1 program for the tax years 2006 to 2017 inclusively and fully supports T1/TP-1 EFILE. This version also features the T3/TP-646 program for the tax years ending from 2006 to 2017 inclusively, as well as the fully functional T5013 program for paper and electronic filing of the Partnership Information Return (T5013 forms) for fiscal periods ending from 2013 to 2017. Installing this version will update your version of DT Max to 21.13.

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

In this version...

DT Max T1

  1. New diagnostics
    1. Notes and diagnostics
    2. Error prevention reports
  2. New keywords
  3. New options

 

DT Max T3

  1. Version highlights/Tax changes
    1. Tax changes for 2017
      1. Known issues fixed in version 21.13
      2. Suggestion from clients added to DT Max T3
      3. Changes pertaining to the client letter
      4. TP-653.C - Deferral of the payment of income tax payable on the deemed disposition of interest in a qualified public corporation
    2. Tax changes for 2018
      1. 2018 tax brackets and rates
      2. British Columbia tax changes effective January 1, 2018
      3. Gross-up rate for dividends other than eligible dividends
      4. Saskatchewan SIFT trusts
  2. New forms
  3. Revised forms
  4. New keywords
  5. New options

 

DT Max T5013

  1. Known issue fixed in version 21.13: keyword Additions in CCA-Class group

 

DT Max T1

  1. New diagnostics

    1. Notes and diagnostics

      Warning - Net self-employment for the purposes of calculating the CPP

      You entered an amount of business income exempt under section 87 of the Indian Act.

      DT Max did not include this exempt amount as net self-employment income for the purposes of calculating the CPP. If you want to include this amount in the calculation of the CPP, you can use the keyword CPT20 and select Tax-exempt self-employment of an Indian (Type N) and enter the amount.

      Warning - Net self-employment income for the purposes of calculating the QPP

      You entered an amount of business income exempt under section 87 of the Indian Act.

      DT Max did not include this exempt amount as net self-employment income for the purposes of calculating the QPP. If you want to include this amount in the calculation of the QPP, you can use the keyword QPP-Elect-OV and select Yes.

      If you want to include a specific amount in the calculation of the CPP/QPP, you can use the keyword QPP-EarnOV and choose the option Pensionable net self-employment earnings to enter the amount.

    2. Error prevention reports

      Quebec

      • 139  Taxable capital gains

        You have disposed of qualified shares in a corporation as part of the transfer of a family business. You may, under certain conditions, treat the resulting gain as a deemed capital gain. This tax measure applies only if you claim a capital gains deduction on line 292 in respect of the deemed capital gain.

        The result of such disposition cannot be a capital loss. Please verify your data entry.

        Description

        Losses



      • 290  Net capital losses from other years

        A portion of the taxable capital gains on line 139 is consisting of a deemed capital gain resulting from the disposition of qualified shares of a corporation as part of the transfer of a family business and for which you claimed a capital gains deduction on line 292.

        This amount reduces the taxable capital gains on which the carry-forward of net capital losses can be applied.

        DT Max used on line 20.1 of TP-729 the taxable capital gains of the following dispositions:

        Description

        Taxable capital gains



        Total

        Please verify and, if applicable, use the keyword Capital-Gains with the option Portion of C/G of a transf. family bus. (L.20.1, TP-729) to enter a different amount in the keyword FAMILYBUSDEDUCT .

  2. New keywords

    1. In the Capital-Gains group, pertaining to the deemed capital gain resulting from the disposition of qualified shares of a corporation as part of the transfer of a family business:

      1. FAMILYBUSDEDUCT : Portion of the taxable capital gains of the transfer of a family business for which you claimed a ded. on line Q292 (TP-729, L.20.1)

  3. New options

    1. For the keyword Capital-Gains , pertaining to the deemed capital gain resulting from the disposition of qualified shares of a corporation as part of the transfer of a family business:

      Portion of C/G of a transf. family bus. (L.20.1, TP-729)

 

 

DT Max T3

  1. Version highlights/Tax changes

    1. Tax changes for 2017

      1. Known issues fixed in version 21.13

        • Printing a copy of Schedule A, B and supplements for Revenu Québec

        • Authorization number for Quebec schedules

          A correction has been made to Revenu Québec authorization number for Quebec schedules: the correct number should be RQFI-1701. We recommend that you recalculate the return in order to have the proper authorization number displayed on the schedules.

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

          Line 20, Total value of the property administered, has been corrected to include the amount from line 11, which is the value of the vehicles.

        • T3ON - Ontario tax

          Starting with version 21.13, DT Max will generate Form T3ON to calculate the Ontario additional tax for minimum tax purposes in the situations where there is no taxable income and there is an obligation to pay federal minimum tax.

      2. Suggestion from clients added to DT Max T3

        The client's company logo will now be displayed on the Executive summary form.

      3. Changes pertaining to the client letter

        For Quebec trusts, the following variable has been added:

        • %97  TP-653.C - Election to defer income tax [0=No, 1=Yes]

      4. TP-653.C - Deferral of the payment of income tax payable on the deemed disposition of interest in a qualified public corporation

        As of February 22, 2017, a trust can elect to defer, under certain conditions and for a maximum of 20 years, the payment of Quebec income tax attributable to the deemed disposition of qualified shares in a qualified public corporation.

        In order to make the election for the trust, the new keyword TaxDefer-Election in the CapitalProp group should be entered. This will prompt other relevant keywords to be generated in order to complete the form.

    2. Tax changes for 2018

      1. 2018 tax brackets and rates

        All federal and provincial tax brackets have been updated in DT Max T3 for 2018. The rates are based on information available as of March 21, 2018. Please refer to the DT Max Knowledge Base link below for additional details on the new federal and provincial tax brackets.

      2. British Columbia tax changes effective January 1, 2018

        British Columbia has introduced a new top tax rate of 16.8% for taxable income exceeding $150,000. This calculation will be integrated in the fifth column until the form becomes available.

        In addition, the BC government increased its general corporate tax rate from 11% to 12% effective January 1, 2018. This rate is reflected in the calculation of the SIFT trust income and distribution tax calculations.

      3. Gross-up rate for dividends other than eligible dividends

        The October 24, 2017, Notice of Ways and Means Motion, revises the gross-up rate for non-eligible dividends for the 2018 taxation year to 16% and 15% for 2019 and later taxation years. It also revises the tax credit for non-eligible dividends to 8/11ths in 2018 and 9/13ths in 2019 and later years

        These rates will be reflected in the calculation of non-eligible dividends on

        • 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 11, Federal Income Tax

        In some provinces, the dividend tax credit is based on a percentage of the taxable dividends. The percentage of the taxable dividend does not change because of the change in the gross-up. As a result, the non-eligible dividend tax credit rates for the following provinces have been modified:

        Province

        % of grossed-up taxable dividends

        % of the gross-up amount

        Manitoba

        0.7835%

        5.6804%

        New Brunswick

        2.853%

        20.68%

        Newfoundland and Labrador

        3.5%

        25.38%

        Northwest Territories

        6.0%

        43.50%

        Yukon

        2.853%

        16.42%

        Quebec

        7.05%

        51.11%

        Ontario

        3.1197%

        22.6175%

        For Quebec, the option to enter non-eligible dividends separately for 2017 and 2018 has been added. This will allow distinct calculations for the trust's dividend tax credit for dividends other than eligible dividends.

      4. Saskatchewan SIFT trusts

        The Saskatchewan government reversed the tax decision to reduce the corporate income tax rate. On November 7, 2017, they passed Bill 84 setting the general corporate income tax rate at 12% effective January 1, 2018.

        This new rate will be applied to the SIFT workchart based on the number of days in the trust's taxation year that are after December 31, 2017.

  2. New forms

    Quebec

    • TP-653.C - Election of a Trust to Defer the Payment of Income Tax Attributable to the Deemed Disposition of Its Interest in a Qualified Public Corporation

  3. Revised forms

    Federal

    • TX-19 - Asking for a Clearance Certificate

      Minor text changes were made to the information on page 1.

    Quebec

    • TP-729 - Carry-Forward of Net Capital Losses

      Revenu Québec has added 2 new lines to the form, lines 20.1 and 21.

    In-house forms

    • Executive summary

    • Schedule B - Investment Income and Expense Supplementary

      A new table has been added for the 2018 taxation year, for dividends other than eligible dividends received in 2017.

    • Specified Investment Flow-Through (SIFT) Trust Income and Distribution Tax Calculations

      Chart 5 - The calculation of the gross-up amount of dividends for other than eligible SIFT deemed dividends has been removed.

  4. New keywords

    1. In the Partnership group:

      1. Div-Act-PrevYr : Actual amount of other than eligible dividends received in the previous year

        Enter the actual amount of dividends received in the previous year.

    2. New keyword in the CapitalProp group for form TP-653.C:

      1. TaxDefer-Election : Election to defer payment of income tax on deemed disposition

        Use the keyword TaxDefer-Election to indicate whether the trust is electing to defer the payment of income tax payable on the deemed disposition of its interest in a qualified public corporation.

        In order to generate form TP-653.C, this keyword must be entered in conjunction with the keyword Type.cg with the option "Qualified shares of a qualified public corporation".

        This measure applies to shares that are qualified shares at the time of the deemed disposition.

        A deemed disposition of property is applicable to certain trusts on a date determined by the Taxation Act (as a rule, the 21st anniversary of the creation of the trust or the date on which the spouse for whom the trust was created died, and the same date every 21 years thereafter).

        The trust can defer, for a maximum of 20 years, the payment of Quebec income tax on the deemed disposition of qualified shares of a qualified public corporation, provided the qualified share is:

        • a share that is included in a large block of shares, or in part of a large block of shares, of a qualified public corporation; or

        • a share of a private corporation more than 95% of the value of which is attributable to a large block of shares, or to part of a large block of shares, of a qualified public corporation.

        A separate calculation must be performed for each class of qualified shares held by the trust.

    3. New keywords in the subgroup for TaxDefer-Election :

      1. Corporation-Name.e : Name of qualified public corporation

        Use the keyword Corporation-Name.e to enter the name of the qualified public corporation.

        A qualified public corporation refers to a public corporation that, at a particular time, meets the following conditions:

        • Its head office is in Quebec.

        • Its base payroll in Quebec for the taxation year including the particular time represents at least 75% of its base payroll in Quebec for the taxation year in which the deemed disposition of the shares occurred, where the particular time does not correspond to the time of the deemed disposition.

      2. Corp-NEQ.e : Quebec enterprise number (NEQ)

        Use the keyword Corp-NEQ.e to enter the Quebec enterprise number (NEQ) for the qualified public corporation.

      3. Corp-ID-Number.e : Identification number

      4. Street-Number.e : Street number of head office

      5. Street-Name.e : Street name or P.O. Box

      6. Suite.e : Suite number of head office

      7. City.e : City, town or municipality

      8. Province.e : Province of head office

      9. Postal-Code.e : Postal Code

      10. Voting-Rights% : Percentage of voting rights in the corporation

        Use the keyword Voting-Rights% to enter the percentage of voting rights in the corporation.

        This measure applies to qualified shares that are included in a large block of shares of a qualified public corporation.

        A large block of shares of a qualified public corporation refers to a block of shares that, in all circumstances, gives the trust more than one third of the corporation's voting rights. A part of a large block of shares of a qualified public corporation refers to one or more of the corporation's shares held by a trust that is a member of a related group of shareholders of the corporation, where this group has a block of shares that, in all circumstances, gives it more than one third of the corporation's voting rights.

      11. SHARE-DESCRIPTION : Description of shares (share class)

        Use the keyword SHARE-DESCRIPTION to enter the type and description of the qualified shares.

      12. Adj-TaxPayable.e : Income tax that would be payable if no deemed disposition

        Use the keyword Adj-TaxPayable.e to enter the income tax that would be payable by the trust if the deemed disposition was not taken into account in the taxable income.

        In order to calculate this tax payable, copy the keywords from production into a plan, and remove the deemed disposition of qualified shares. Calculate the return, note the income tax payable from line 140 of the TP-646, return to the production version and use this keyword to enter the calculated income tax payable from the plan.

        This amount will be entered on line 13 of the Quebec form TP-653.C.

    4. New keyword group to carry forward the deferred tax information on the deemed disposition of qualified shares:

      1. Cap-History.ch : Historical information on disposition of qualified shares

        Use the keyword Cap-History.ch to report the historical information for the deemed disposition of qualified shares in a qualified public corporation.

        Historical information for previous tax years should be entered by the user for each new client. DT Max will automatically carry forward the information of the current year, if applicable.

        This information will be carried forward until the income tax becomes payable on the 20th anniversary.

      2. Deemed-Disp.ch : Date deemed disposition was reported

        Use the keyword Deemed-Disp.ch to record the date the deemed disposition of the qualified shares took place. The user need only enter this information for new clients.

        Income tax attributable to the deemed disposition of a qualified share of a qualified public corporation becomes payable on the 20th anniversary of the deemed disposition or on the actual disposition of the qualified share.

        However, where a succession or trust distributes a qualified share to one of its beneficiaries, the debt represented by the income tax attributable to the deemed disposition of the qualified share may become that of the beneficiary, provided that the share remains a qualified share immediately after the distribution.

      3. Corp-Name.ch : Name of qualified public corporation (Historical info)

        The keyword Corp-Name.ch records the name of the qualified public corporation in which there was a deemed disposition of its shares.

      4. Corp-NEQ.ch : Quebec enterprise number (Historical info)

        Use the keyword Corp-NEQ.ch to enter the Quebec enterprise number (NEQ) for the qualified public corporation.

      5. Corp-ID-Number.ch : Identification number (Historical info)

        Use the keyword Corp-ID-Number.ch to enter the corporation's identification number.

      6. Deferred-Tax-CF : Indicate the prior year and amount of election

        The keyword Deferred-Tax-CF is used to indicate in which prior year the deemed disposition was declared and the amount of income tax deferred.

        This information will be carried forward until its 20th anniversary.

  5. New options

    1. New option for keyword Dividends in the IncomeSource group and for keyword Dividend.t in the T-Slip group:

      Actual amount of ordinary dividends (received in 2017)

 

 

DT Max T5013

  1. Known issue fixed in version 21.13: keyword Additions in CCA-Class group

    The amounts entered with the keyword Additions in the CCA-Class group for certain CCA classes were being calculated on Schedule 8, column 205 and Quebec Schedule B, column C at 75% rather than 100% when the year end was before December 31, 2017. This issue has been fixed in version 21.13.

 

 

 

March 21, 2018