DT Max version 10.32 includes the T2 program for fiscal periods ending from 1994 to 2007 and fully supports corporation Internet filing (T2 and CO-17) and Ontario CT23 diskette or CD filing (D-File). In this version...DT Max T2
Program certification Version highlights Known issuesProgram certificationOntario For DT Max T2 version 10.32, CT23 forms have received updated Ontario Ministry of Finance certification under approval number 080C. This number is printed at the bottom of every page of both the short and long versions of the CT23. Alberta Alberta Finance has also granted DT Max a new certification labelled DT15. Version highlights
Federal 1 -CCA class 45.1 for computers at 55% Currently, computer equipment is generally eligible for a CCA rate of 45% under class 45. Budget 2007 proposed to increase the CCA rate for computers acquired on or after March 19 2007. Since legislation has yet to assign a new class number, we have updated the CCA-Class list with a temporary class number 45.1 for these assets that give entitlement to a 55% capital cost allowance rate. 2 -CCA class 43.3 for M & P machinery or equipment at 50% SL Currently, machinery or equipment used in manufacturing or processing is
generally eligible for a CCA rate of 30% under class 43. Budget 2007 proposed
to temporarily increase the CCA rate to a 50% straight-line. Since legislation
has yet to assign a new class number, we have updated the CCA-Class list
with a temporary class number 43.3 for these assets that give entitlement
to a 50%, straight-line capital cost allowance rate.
CRA corrects design error on GRIP Schedule 53 Part 5 of the schedule - GRIP addition for 2006, is only to be completed once for a given corporation, if and only if the taxation year includes January 1, 2006. The CRA had a design error in the originally published version and has instructed us to correct it by making the following change to Schedule 53: We have indeed resolved the issue in DT Max, for tax year 2007, but the change will however not be apparent to most users. That is because on the one hand, the majority of returns currently being filed are 2007 year-ends that most likely do not include January 1, 2006. On the other hand, the 2006 tax year calculations remain unchanged since the program has already been archived, no further program updates will be made to this tax year. Please refer to the FAQ
entry included with this release for more detailed instructions.
Modified production conditions for Schedule 55 Since its introduction in version 10.25, Schedule 55 - Part III.1 Tax on Excessive Eligible Dividend Designations would only be generated if there was an amount on either lines 190 or 290, that is to say if a penalty was payable. Clarification received from the CRA has lead to more generic production conditions - Schedule 55 will now be generated if there are taxable dividends paid in the year. Capital gains received from trusts and the CDA DT Max allows you to control whether the non-taxable portion of capital gains received from trusts is to be added or not to the capital dividend account (CDA). It is with a secondary keyword in the IncomeSource group called CDA-Ov , that you respond by Yes or No whether the said portion is to be excluded from the CDA (the default value is No). Please note that in previous versions, this keyword was called Trust. Conversion of data to the new format of the keyword is automatic. Ontario CT23: Progressive elimination of the Ontario capital tax By January 1, 2012, the combined effect of the increase in the capital tax deduction and the reduction of the capital tax rate will result in the complete elimination of the capital tax. For the calendar years of interest in this version, here is the relevant information that will appear in calculations of Section B and Schedule 591 of the CT23:
*Regular corporations
CT23: OITC claim form update includes guidance for non-CCPC business limit cases The Ontario Innovation Tax Credit (OITC) claim form has been modified to reflect business limit changes and to provide direction on how non-CCPCs are to calculate the business limit for OITC purposes. CT23: Form changes arising from donations of securities and eco land CT23 Schedule 6 - Capital gains: Obsolete content has been removed. Capital gain exemption information for donations of publicly-listed securities and ecologically sensitive land made after May 1, 2006 has been added. CT23 Schedule 101 - CMT: Changes have been implemented to make sure no corporate
minimum tax is levied on capital gains arising from donations after May 1,
2006 of certain publicly-listed securities to qualified charities and of ecologically
sensitive land.
Alberta AT1: Alberta SBD threshold increased to $430,000 Alberta Finance has updated its AT1 Schedule 1 - Alberta Small Business Deduction to reflect the threshold increase of active business income that is subject to the low tax rate to $430,000, up from $400,000. This change takes effect April 1, 2007. Quebec CO-17: Identification number requirements The Tax-Account keyword in the Quebec jurisdiction is the mandatory identification number printed on line 01b of the CO-17. It must adhere to this 15-character format: NNNNNNNNNN IC 0001. If in the data entry the old registration number (9-XXXXX-9999-9) has been carried forward from previous years, it should be noted that it is obsolete and should be replaced by the approved number in order not to cause any processing delays. CO-17: Quebec mining production start-date causes processing delays Revenu Québec has advised us that a significant number of tax returns coming from non-mining corporations, are filed with a date mining operations began, on line 21 of the CO-17(erroneously entered with keyword BeginMineOp ). When this start-date does not apply, the data fails validity checks and processing is delayed. We have hence tightened the printing conditions of this field to only when the corporation's activity is mining. CO-17: Clarification on Quebec R&D expenditure data entry (CO-17.A.1) When total R&D expenditures are entered under the Total SR&ED expenses deducted in fin. statements of the Net-Inc-Add keyword, the net income reconciliation schedule also requires entering the specific breakdown of these in lines 18a-18d of the CO-17.A.1 as follows:
18a - Wages paid for support The above details are to be entered under the following keyword options, respectively:
In light of this, from now on, in the absence of detailed entries, DT Max
will apply the total amount entered to line 18c , in addition to issuing the
pre-existing diagnostic.
CO-17: Extension and improvement of the M & P credit for investments The period during which investments in manufacturing and processing equipment can be made has been extended by five years. Furthermore, the rate of the capital tax credit has been increased from 5% to 10% with respect to such investments. The property covered by the increase in the rate of the capital tax credit
is class 43 property acquired after February 20, 2007, and before January
1, 2013, barring certain exceptions. The DT Max calculations for this schedule
have been modified accordingly. Please note that the update did not require
any change to the existing form. Modified schedules
This section lists modified schedules in version 10.32 that have not been previously discussed. Federal: Schedule 32: Claim for Scientific Research and Experimental Development (SR&ED) carried out in Canada Schedule 346: Nova Scotia Corporation Tax Calculation Schedule 411: Saskatchewan Corporation Tax Calculation Schedule 427: British Columbia Corporation Tax Calculation Ontario: CT23 long: Ontario CT23 Corporations Tax and Annual Return CT23 Schedule 10: Summary of Cumulative Eligible Capital Deduction CT23 Schedule10 summary: Detailed summary of Ontario Cumulative Eligible Capital Deduction CT23 Schedule 591: Capital Tax Election of Associated Group Agreement for
Allocation of Taxable Capital Deduction (TCD)
Quebec: CO-1138.1 -Agreement and Election respecting the Deduction for Farming and Fishing Corporations The amount to be deducted in calculating the paid-up capital of a farming corporation or a corporation that carries on a fishing business has been raised from $400,000 to $5 million. The change applies to a taxation year ending after February 20, 2007. In the case of a taxation year that includes that day, the increase in the exemption corresponds to the proportion of $4.6 million represented by the ratio between the number of days of the taxation year that follow February 20, 2007, and the number of days in the taxation year. Furthermore, in accordance to the form design, data entry for the allocation of the deduction between associated members in the RelatedParty group has changed. The existing Alloc-Farm dollar amount keyword has been replaced with the Alloc%-Farm percentage keyword. Because of that change, any data entered in the old dollar amount keyword is lost and must be re-entered in the new percentage format. DT Max will continue to derive the farming or fishing deduction allocated to the filing corporation by difference with respect to the related parties, using percentages instead of dollar amounts in its calculations.
1 - Rate increase for CCPCs The most important of the four tax credits that relate to the assistance Quebec provides for R&D has been improved. The basic rate of this refundable tax credit is 17.5%, but it can reach 37.5% for CCPCs, provided certain conditions are met. The calculation takes into consideration the assets of the corporation and of its associated corporations which could not, before the change, exceed $25 million, in order to benefit from the maximum rate. This threshold, above which the credit rate is gradually reduced, has been increased to $50 million. Furthermore, the tax credit rate, which used to bottom out at 17.5% for assets in excess of $50 million, will now do so at $75 million. Please be reminded that the increased rate only applies to the first $2 million
of R&D expenditures.
Part 3 of the RD-1029.7, which covers situations relating to partnerships, now includes provisions for corporations that are members of a partnership that is itself an intermediary, member of the eligible partnership. Additional information on intermediaries can be entered with the following keyword groups:
The Partner-Info.q keyword in the SR&;EDTAXCRQ group with the following options will help DT Max establish the relationships with entries made in the RelatedParty :
Member-Partner , part of the RelatedParty is where the details of the
eligible partnership member of a partnership of which the intermediary is
a member are entered.
Other modified Quebec schedules CO-771: Calculation of the Income Tax of a Corporation CO-771.1.3: Associated Corporations' Agreement Respecting the Allocation
of the Business Limit and Calculation of the Business Limit
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