  What's new for T2 Internet version 10.40? |
The latest DT Max release is currently available for downloading. DT Max version
10.40 includes the T2 program for fiscal periods ending from 1994 to 2008 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
Technical changes
The security system has been enhanced and now includes two new options (located
under the Preferences menu, Security system option). They are
Setup files manager... and System policy manager. For information
about these new features, click Setup
files manager and System
policy manager. Note that the Synchronize setup files option, located
under the Advanced utilities in the Tools menu has been removed,
as it is now part of the Setup files manager.
Also note that if you are using the pop-up index to show the index of pages
in the tax return (see User interface in the Preferences menu),
the mouse right-click will now provide you with a menu from where you can
select "Show-hide index F12" to display the index. You can
also use the F12 function key.
Program certification
For DT Max T2 version 10.40, the federal RSIs (Return and Schedule Information),
barcodes and the Corporation Internet Filing module have received full CRA
certification valid for taxation year-ends up to April 30, 2008, under the
DT16 stamp.
Form TP-985.22 entitled Information Return for Registered Charities and
Certain Recognized Organizations, has been authorized under number RQRM-0701.
Reminder: Single administration of Ontario corporation tax for 2009
Please be advised that it is only in 2009 that the Ontario corporation tax
will be amalgamated into the federal system. On December 13, 2006, the Strengthening
Business through a Simpler Tax System Act, 2006 (Bill 174) was introduced.
It implements federal administration of Ontario's corporate income tax for
taxation years ending after 2008.
Changes to CRA's My Business Account
My Business Account
website
CRA's online service, provides convenient and secure access to a growing
range of personalized business account information and services.
Among other services available on the site, the status of a T2 return, account
balance, and CRA-issued communication items can be viewed.
Starting in October 2007, CRA has implemented the following changes to the
portal:
Online authorization of representatives
My Business Account now allows business owners to authorize representatives
online, including employees, and view account transactions. This process can
also be done by completing and sending the new RC59, Business Consent Form.
Represent a client
Authorized representatives can view account information and transact online
on behalf of their corporate clients through Represent a Client service.
Related keywords - Consent group
Online-Access : authorization for online access
Bus-Number.rep : representative's business identification number
RepID : representative identification number (7-character alphanumeric
code)
File-Number : file or account number
Level-Authorize : level of authorization
TAXYEAR-ACCESS : fiscal period end date, if not authorizing access to all
years. This is not available for online access.
Expiry-Date : expiry date of consent
Version highlights
Increase in federal instalment base amount threshold
The annual instalment base amount of Part I, VI, VI.1 and XIII.1 tax above
which a corporation is required to make instalment payments is increased from
$1,000 to $3,000 for tax years beginning after 2007.
*****
Federal quarterly instalments now accepted (conditions
apply)
Eligible Canadian-controlled private corporations are allowed to make quarterly
instalment payments for tax years beginning after 2007 under certain conditions.
DT Max reproduces Worksheet 3, called the T2WS3, under the form heading Quarterly
instalments calculation - federal, which calculates the quarterly instalment
payments for 2008.
Eligibility requirements
For tax years beginning after 2007, a CCPC will be eligible to make quarterly
instalment payments if, at the time the payment is due:
- it has a perfect compliance history;
- it has claimed a small business deduction for the current or previous tax
year;
- together with any associated corporations, for the current or previous
tax year;
- it has taxable income of $400,000 or less; and
- it has taxable capital employed in Canada for the tax year of $10 million
or less.
Perfect compliance history is considered to be met if, during the previous
12 months:
- all the amounts required for GST/HST, withholding under subsection 153(1)
of the Income Tax Act, Canada Pension Plan contributions and Employment
Insurance premiums were remitted on time; and
- the corporation filed all returns required under the Income Tax Act
or under Part IX of the Excise Tax Act (GST/HST) on time.
Quarterly instalments related keywords
InstalRec
The following new option has been added for this keyword:
CurrInstal
The following 4 new options have been added for this keyword:
- First quarter
- Second quarter
- Third quarter
- Fourth quarter
RelatedParty group
TaxableInc.re
To enter the taxable income of the associated corporation in the current
tax year.
CorpHistory group
SBD-Claimed
To indicate whether or not the corporation had claimed the small business
deduction in the previous tax year.
*****
Elimination of federal surtax as of January 1, 2008
As announced in Budget 2005, the corporate surtax will be eliminated for
all corporations as of January 1, 2008.
*****
Reduction of the general federal corporate income tax rate
The October 30 Economic Statement proposes to reduce the general corporate
income tax rate (after the 10% abatement for income earned in a province)
to 19.5%, down from 20.5% effective January 1, 2008.
The rate reductions will apply to income that is taxed at the general corporate
income tax rate. This does not include income that is already eligible for
the small business deduction; investment income of Canadian-controlled private
corporations (CCPCs), which income is eligible for a special refundable
tax; the income of credit unions eligible for the corporate tax rate reduction
under section 137 of the Income Tax Act; and the income of mutual
fund corporations, mortgage investment corporations, most deposit insurance
corporations and investment corporations (as defined in the Income Tax
Act), which income already qualifies for special tax treatment.
*****
Acceleration of the tax reduction for small business
The small business deduction currently reduces the federal corporate income
tax rate of a CCPC to 12% (13.12 % including surtax).
The recent Economic Statement accelerates the schedule already in place
to reduce the small business tax rate tabled with Budget 2006. The 0.5%
reduction in the small business tax rate currently scheduled for 2009 will
become effective in 2008. The small business tax rate will hence fall to
11% January 1, 2008.
Usual pro-ration rules for corporations with taxation years that do not
coincide with the calendar year apply.
*****
Gifts of medicine ( Charity group)
Schedule 2, Charitable donations and gifts has been modified to
incorporate gifts of medicine. The following 3 keywords that will populate
new Part 6 of the schedule have been added:
Proceeds-Disp
To enter the fair market value of the donated medicine needed to calculate
the current-year gifts of medicine.
Cost.ch
To enter the cost of gifts of medicine needed to calculate the current-year
gifts of medicine.
Elig-Amount
To enter the eligible amount of the gifts of medicine needed to calculate
the current-year gifts of medicine.
*****
New tax credit for the creation of licenced child care spaces for employees
Budget 2007 introduces a tax credit to encourage businesses to create licenced
child care spaces for the children of their employees and, potentially,
for children in the surrounding community. The tax credit is paid as part
of the existing investment tax credit (Schedule 31).
The measure will provide eligible taxpayers with a non-refundable investment
tax credit equal to 25 per cent of eligible expenditures, to a maximum credit
of $10,000 per child care space created.
Eligible expenditures will include:
- cost of depreciable property (other than specified property)
- specified start-up costs, acquired or incurred solely for the purpose
of the creation of the new child care space at a licenced child care facility.
Childcare-spaces related keywords
The following six new keywords pertain to Part 24 on page 11 of the newly
revised federal schedule 31:
ChildCare-Spaces
Number of child care spaces
STARTUP-COSTS
Amount of specified child care start-up costs
ASSISTANCE.CC
Government /non government assistance received (+) or repaid (-)
ProvCr-Alloc.c
Amount and source of tax credit allocated a member of a partnership as
well as the credit deemed as a remittance of co-op corporations.
AMOUNT-CB.C
Tax year the credit was applied to and desired carryback amount. The corporation
may carry back the current-year tax credit earned for a maximum of 3 years.
Credit-OV.c
To override the child care spaces tax credit claimed in the current year
as calculated by DT Max.
*****
Modified keywords
ProvCreditOV
2 new options have been added for this for keyword:
Resort property investment tax credit Newfoundland and Labrador
This new non-refundable tax credit is designed to encourage individuals
and corporations based in the province to invest in qualifying resort development
properties with high-end amenities and services in areas of the province
outside the northeast Avalon Peninsula.
Green energy manufacturing tax credit - Manitoba
The green energy manufacturing tax credit is a refundable tax credit that
is equal to 10% of the value of qualifying property in Manitoba and sold
before 2019 for residential or commercial use in Manitoba. Qualifying property
includes wind power, solar energy, geothermal and hydrogen fuel cell equipment.
*****
StatusChange
A new option has been added for this keyword:
Deemed tax year-end
If the tax year-end is a deemed tax year-end in accordance with subsection
249(3.1), use this option
*****
Account
The following six new options have been added for this for keyword:
RC Corporate income tax return
RE Excise Tax
RN Insurance premium tax
RD Excise duty
RG Air travelers security charge
SL Softwood lumber products export charge
Modified schedules
Federal
Schedule 200 - Corporation Income Tax Return
Schedule 5 - Tax calculations supplementary - Corporations
Schedule 12 - Resource-related deductions
The Resource group has been changed in order to incorporate data for
the look-back rule (subsection 66(12.66)) of the Income Tax Act:
New options for keyword ResourceAdd :
Current yr expenses (excluding exp. under look-back rule)
Current yr expenses under look-back rule
New option for keyword ResourceDed :
Expenses renounced under look-back rule
Schedule 20 - Part XIV Additional tax on non-resident corporations
Schedule 33 - Part I.3 Tax on large corporations
Schedule 34 - Part I.3 Tax on Financial Institutions
Schedule 35 - Part I.3 Tax on Large Insurance Corporations
Schedule 36 - Agreement Among Related Corporations - Part I.3 Tax
Schedule 46 - Part II - Tobacco Manufacturers' Surtax
Schedule 54 - Low Rate Income Pool (LRIP) calculation
Schedule 342 - Nova Scotia Tax on Large Corporations
Schedule 366 - New Brunswick Corporation Tax Calculation
Schedule 383 - Manitoba Corporation Tax calculation
Schedule 421- British Columbia Mining Exploration Tax Credit
In the Mining group, 3 new options for keyword have been added for the
Expenses.m keyword:
Before February 21, 2007
After February 20, 2007 (prescribed areas)
After February 20, 2007 (outside prescribed areas)
Schedule 422 - British Columbia film and television tax credit
T1141 - Information Return in Respect of Transfers or Loans to a Non-resident
Trust
T1142 - Information Return in Respect of Distribution from and Indebtedness
to a Non-Resident Trust
T2054 - Election for a Capital Dividend Under Subsection 83(2)
The following new keyword applies to forms T2054 and affects the DividendPaid
group:
ELECTION.D
This keyword is used to indicate whether or not the corporation is making
an election under subsection 14(1.01) or 14(1.02) of the Income Tax Act.
The election allows the corporation to have the provisions of subsection
83(2) apply to a capital dividend.
Quebec
CO-1029.8.33.6 - On-the-job Training Tax Credit (French only)
TP-985.22- Information Return: Registered Charities, Registered Museums,
Registered Cultural or Communications Organizations and Recognized Political
Education Organizations
TP-1086.R.23.12 - Costs Incurred For Work on an Immovable
Courtesy English translations available:
CO-1138.1 - Agreement and Election Respecting Deduction for Farming and Fishing
Corporations
RD-1029.7 - Tax credit for salaries and wages (R&D)
New schedules
Schedule 428 - British Columbia training tax credit - Employment group
The following six new keywords pertain to the British Columbia training
tax credit calculated on the new federal schedule 428.
Level.c
To indicate the level of completion of the apprenticeship program.
Program.c
To enter the name of the Red-seal or non-Red seal program that the employee
is enrolled in. The Red Seal programs follow national standards for content,
assessment and achievement while non-Red Seal training follows provincial
standards.
Registration.c
To enter the registration number provided by B.C. Industry Training Authority
(ITA). If there is no registration number, enter the social insurance
number (SIN) or the name of the employee.
Credit-Type
To choose the type of B.C. training tax credit that applies to the apprentice.
Program.cr
To enter the name of the Red-seal program that the employee is enrolled
in.
Salaries.c
To enter the salaries and wages payable for employment after December
31, 2006 for each apprentice. The salaries and wages are net of any other
government or non-government assistance received or to be received.
New blank schedules
T1240 - Registered charity adjustment request
T1002 - Manitoba film and video production tax credit
AT97 - Notice of objection (Alberta)
Deleted schedule
November 8, 2007
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