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Print this pageForward this document  What's new for T1/T2 version 6.20?

The latest DT Max release, T1/T2 version 6.20, is now available both for downloading from our Web site and on CD-ROM.

Version 6.20 contains the fully functional T1 tax program for tax years 1996 to 2002 as well as the fully functional T2 tax program for fiscal periods ending in 1994 onwards.

The MRQ has informed us that several DT Max users are not using the latest program version available to file their corporate tax returns. It is strongly recommended that you install the CD and Internet versions at your disposal as they typically contain updated calculations, improvements and corrections, and failure to use version updates may result in processing delays and even rejections.

In this issue...

DT Max T1

    2003 federal budget

    The changes concerning the national child benefit and the RRSP contribution limit proposed in the federal budget of February 18, 2003, have been incorporated in this version.

    • The national child benefit supplement will be increased by $150 per child as of July 2003.
    • The RRSP contribution limit has been increased to $14,500 for the 2003 tax year.

    Known issues

    Keywords

    • To complete section 1 of part 2 (non-resident tax required to be withheld) on schedule C titled Electing under section 217 of the Income Tax Act, you must indicate if a tax treaty was signed between Canada and the taxpayer's country of residence with the keyword Tax-Treaty.nr and use the keyword TREATY-INCOME to record and calculate the eligible section 217 income.

      Note that we have consequently removed the keyword ELIG-INCOME . If an override is necessary, please use the keyword Elig-Inc-OV .

    • The keywords Estate-Number and PROPOSAL-DATE have been added to the Bankruptcy group to complete the DC905 - Bankruptcy identification form.

    • AMT calculations for Ontario have undergone significant modifications. The CRA has introduced a new form, T1219-ON - Ontario minimum tax carryover. Amounts being applied from the 2000 and 2001 tax returns must be entered using the keyword AMT-HIST.

    • To reflect changes to Quebec form TP-766.2-V - Averaging of retroactive payments or of support, the relevant information should be entered using the keywords Principal and Interest.

    New forms

      Schedule B - Allowable amounts of non refundable tax credits
      Schedule C - Electing under section 217 of the Income Tax Act
      T1219-ON - Ontario minimum tax carryover
      T1237 - Saskatchewan farm and small business capital gains tax credit
      DC905 - Bankruptcy identification form

    Revised forms

      Federal

      T2121 - Statement of fishing activities
      T2203 - Provincial and territorial taxes for 2002 - multiple jurisdictions

      Quebec

      TP-766.2 - Averaging of a retroactive payment or of support

    Forms under review

      NR5 - Application by a non-resident of Canada for a reduction in the amount of non-resident tax required to be withheld
      T4A-RCA - Statement of amounts paid from a retirement compensation arrangement

T2 program

    Quebec certification

    The DT Max T2 program is newly certified under the MRQ's CO-17 (2002-12) version specifications.

    2002-2003 Quebec budget

    • For corporations other than financial institutions, the general rate of the tax on capital will be gradually decreased from 0.64% to reach 0.3% in 2007. For 2003, the rate is set at 0.6%.

      For financial institutions, the rate will be reduced from 1.28% to reach 0.6% in 2007. The rate applicable to 2003 is 1.2%.

    • There will be a progressive deduction in the calculation of paid-up capital commencing January 1st, 2003. The maximum deduction for 2003 is $250,000. Associated corporations must divide this amount amongst themselves.

    • The minimum amount of tax on capital payable by a corporation (generally $250 -- $125 for a farming corporation or for a corporation carrying on a fishing business), has been eliminated for fiscal periods ending in 2003.

      Also note that...

    • The federal general corporate income tax rate has been reduced from 25% to 23% as of January 1st, 2003.

    • Please keep in mind that to avoid confusion, DT Max calculates the totals and subtotals of the GIFI entries based on the data entered. An "override" description is now available next to the GIFI item to indicate which GIFI fields are totals. See How does DT Max handle GIFI totals and subtotals?

    • Quebec forms CO-1132-V - Tax on paid-up capital, CO-1137.A-V - Progressive deduction and CO-1186.6-V - Calculation of the contribution to the youth fund may be displayed on screen but will not be printed for production purposes as they are not required for filing.

    Known issues

    Keywords

    • Use the keyword NPO-Return to determine whether the organization should be filing an information return in the tax year.

    • Any government assistance (subsidy) received by the corporation in the year is entered with Amount.Assist in the Jurisdiction group. To indicate how the assistance was applied, use the keyword Application .

    • The keyword Oth-Business is used to indicate whether the corporation continued to operate another business during the year.

    • To indicate if a related party is a resident of Quebec and/or Canada, use the keywords QC-Resident and CDN-Resident respectively.

    • The keyword TaxHoliday is used to indicate if the corporation is claiming the five-year temporary exemption or the tax holiday respecting manufacturing and processing businesses in remote regions.

    • Use the keyword RESOURCE-REGION to identify the remote resource region of Quebec where the corporation carried out its activities.

      If the corporation is eligible for the deduction from paid-up capital (line 50 of form CO-737.18.18), use the keyword PaidUpCapDed with the option SME manufacturing businesses.

    • The keyword QC-TAX-PUC in the CorpHistory group can be used to enter the corporation's paid-up capital in the previous year.

    • To allocate the progressive deduction amongst associated corporations, enter each associated corporation's year-end information with the keywords Prev-Yr-Begin and Prev-Yr-End.

    • Use the keyword PUC-Prog-Ded in the group RelatedParty to enter the percentage of the progressive deduction that has been allocated to the associated corporation for purposes of form CO-1137.E.

    • If the corporation is electing under section 1138.1 not to be an associated third-party corporation for purposes of the $400,000 deduction from the paid-up capital for the year, indicate it by using the keyword Elect-S1138.1 .

    • If a British Columbia corporation is exempt from filing the general return, you may force the display of this return with the keyword BC-RETURN-OV .

    New forms

      Federal

      T1044 - Non-profit organization (NPO) information return

      Quebec

      CO-737.18.18-V - Exemption for small and medium-sized manufacturing businesses in remote resource regions
      CO-1132-V - Tax on paid-up capital (not required for filing)
      CO-1137.A-V - Progressive deduction (not required for filing)
      CO-1137.E-V - Agreement respecting the progressive deduction

      In-house

      Suppl. for remote resource region schedule
      Schedule for CO-17 line 44b, associated corporations

    Revised forms

      Federal

      Schedule 301 - Newfoundland research and development tax credit
      Schedule 404 - Saskatchewan manufacturing and processing profits tax reduction (2002 and later taxation years)

      Quebec

      CO-17-V - Corporation income tax return
      COR-17.W-V and COR-17.X-V - Keying summary for the corporation income tax return
      CO-17.A.1-V - Calculation of net income for income tax purposes
      CO-771-V - Calculation of the income tax of a corporation
      CO-1029.8.33.6-V - Tax credit for an on-the-job training period
      CO-1138.1-V - Agreement and election respecting the deduction for farming and fishing corporations
      CO-1140-V - Paid-up capital for the purpose of determining the amount giving entitlement to the temporary exemption

    Obsolete forms

      Quebec - 2003 fiscal year-ends

      CO-771.10-V - Income from eligible business
      CO-771.5-V - Temporary exemption
      CO-771.6.A-V - Temporary exemption (first taxation year)
      CO-771.6.B-V - Temporary exemption

      The last three forms are no longer required by the MRQ as the relevant information is provided on the CO-17 corporation tax return.

      The forms previously used to calculate the tax payable (CO-771.A, CO-771.B and CO-771.C) have been integrated into one form, CO-771-V - Calculation of the income tax of a corporation. This new form is available for 2003 year-ends.

      Quebec - 2002 and 2003 fiscal year-ends

      CO-771.1.3-V - Business limit agreement
      CO-1029.8.25.F-V - Refundable tax credit for training

Reminders

    Overrides

    Please keep in mind that as a general rule, you should not use overrides unless otherwise instructed by a software support technician or pursuant to a DT Max help document.

    Carryforwards

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

    Backing up

    Loss of information stored in computers can be very costly because of the large investment in time that it represents. Much of the data may be irreplaceable. When the information is sensitive for your client, it is especially wise to be cautious and back up regularly.

    Loss of data may be due to a variety of causes, e.g hard disk failure, theft of equipment, careless copying or deletion of files, fire or water damage. You must have a backup that will be able to cope with any of these disasters, one that will be reliable and available for you when you need it.

    Don't wait for an unfortunate experience to stress the importance of a good backup. There are several methods you can use to back up your data. The easiest and most reliable is to use DT Max's built-in backup utility. It can be used in addition to your system backup.

March 18, 2003