What's new for T2 version 8.01?

The latest DT Max program update is now available for downloading. It features the fully functional T2 program for fiscal periods ending from 1994 to 2005, and it supports corporation Internet filing and Ontario CT23 D-file.

In this edition...

Known issues since v7.35

Other deductions from Ontario
EFF form generated erroneously in CT23 final year

Known issues fixed in v8.01

Temporary exemption for farming corporations
Illegible characters in client list printout

Program certification

Federal

DT Max is fully certified for both RSI's and corporate Internet filing under the CRA's new specifications. Users can file returns with year-ends up to April 30, 2005.

GIFI

The CRA has issued new specifications requiring that GIFI notes be formatted with fixed pitch font with a maximum of 78 characters per line. This limitation has been implemented in v8.01.

Users may notice that when they cut and paste notes into the GIFI-Notes dialogue box, or when they are importing the GIFI, the notes are no longer properly formatted. We strongly recommend that the GIFI notes be reviewed and that users reformat them if needed before submission to the government.

Schedule 8

New class 45 (general-purpose electronic data processing equipment at a rate of 45%) and new class 46 (data network infrastructure equipment at a rate of 30%) have been implemented in v8.01. Note that if former class 8 (30%) or class 10 (45%) existed in a prior version, DT Max will automatically convert these two classes into their new corresponding class.

Alberta

DT Max is certified for RSI's under Alberta Revenue's new specifications.

Revised versions of Alberta schedule 5 (Alberta royalty tax deduction) and Alberta schedule 8 (Alberta political contributions tax credit) have been incorporated into v8.01.

Manitoba

DT Max is certified under the new specifications of Manitoba Finance with respect to the Corporation capital tax return.

Quebec

DT Max is newly certified under the MRQ's CO-17 (2004-12) version specifications.

CO-17.SP

Non-profit corporations are required to file a corporate tax return even though they are generally exempt from paying tax and tax on capital. Moreover, a tax-exempt entity must file an Information return for tax-exempt entities (TP-997.1) if the entity has filed such a return in the past, or the value of its assets is higher than $200,000 or its property income exceeds $10,000.

The MRQ has published a new corporate tax form intended for the clientele of non-profit corporations: the Information and income tax return for non-profit corporations (CO-17.SP). The data required to process this return are part of the Sommaire des champs à saisir de la déclaration de revenus des sociétés (COR-17.W).

The CO-17.SP return allows the corporation to fulfill two tax requirements within one same document, namely the obligation to file a corporate tax return, and the obligation to file an information return for tax-exempt entities by filling out part 4 of form CO-17.SP.

Certain non-profit corporations are eligible for tax credits. These corporations will have to continue to file a Corporation income tax return (CO-17) in order to claim the tax credits to which they are entitled.

DT Max will generate the return (CO-17 or CO-17.SP) that is applicable to the corporation based on the information entered. Other supporting schedules may be generated by DT Max based on information entered that may not be required for filing. Please verify the data entry.

CO-1137.A and CO-1137.E

The maximum amount of the deduction with respect to the calculation of paid-up capital is set to $1 Million for the 2005 calendar year and for subsequent years.

New keywords

Use NAL-TRANSFGAIN within the CCA-Class group to enter the non-arm's length transferor's gain realized on the transfer of an eligible capital property to the corporation after December 20, 2002, for purposes of federal schedule 10.

Use the keyword CEASED-CEC within the CCA-Class group to enter the amount of cumulative eligible capital for a property no longer owned after ceasing to carry on that business for purposes of federal schedule 10.

Use the keyword DATE-FIRSTEXP within the Cred-Film group to enter the date of the earliest labour expenditures in order to determine the applicable tax credit calculation on federal schedule 47.

Use the keyword ELECTION.F within the Cred-Film group if the corporation elects to apply the rules in effect on or after November 14, 2003, for purposes of federal schedule 47.

Use the keyword R&DPreparer within the SR&ED group to enter the name of the tax preparer who completed the SR&ED form.

Use the keyword FIRSTCLAIM within the SR&ED group to indicate whether this is the first time the corporation is making an SR&ED claim.

Use the keyword LASTYR-CLAIM within the SR&ED group to indicate the year that the last SR&ED claim was made.

The gross income from the operations of an IFC refers to the gross income that results from the activities of this IFC in a taxation year. Use the keyword GrossRev-IFC within the QCompens-Tax group to enter this information for purposes of Quebec schedule CO-1140.

Use the keyword Part-GrossRev within the RelatedParty group to enter the corporation's share of the partnership's gross revenue for purposes of Quebec schedule CO-1140.

Use the keyword Partner-Sal within the RelatedParty group to enter the corporation's share of the partnership's salaries for purposes of Quebec schedule CO-1140.

The keyword CO17-OV enables you to override Quebec's CO-17.SP-V return and force the display of the CO-17-V return instead.

Use the keyword Trust-Return within the Jurisdiction group to indicate whether or not the corporation is required to file form TP-646-V.

The keyword OdourControl opens up the group to enter information relating to federal schedule 385 (Manitoba odour control tax credit).

Use the keyword SharesOfCorps within the TaxOnCapital group to enter the name of the issuing corporation and the amount of shares of other corporations.

Use the keyword BondsOfCorps within the TaxOnCapital group to enter the name of the issuing corporation and the amount of bonds of other corporations.

Use the keyword Oth-Loans&Adv within the TaxOnCapital group to enter the name of the issuing corporation and the amount of other loans and advances to other corporations.

Use the keyword TRANS-RESPOOL within the Royalty group to indicate whether a transfer of resource pools occurred during the year due to a disposition of all or substantially all of the Canadian resource properties, a change of control, or ceasing to be exempt from tax under subsection 20(14), for purposes of Alberta schedule 5.

Use the keyword SUCCESSION to indicate whether the resource property pool balance is successored or unsuccessored, for purposes of Alberta schedule 5.

Federal forms

New

Schedule 384 - Manitoba co-operative education tax credit


Choosing the option Manitoba co-operative education tax credit within the keyword Employment opens up the group to enter information relating to schedule 384.

Schedule 385 - Manitoba odour control tax credit

T1174 - Agreement between associated corporations to allocate salaries or wages of specified employees for SR&ED carried on in Canada


Choosing the option SR&ED salaries/wages of specified employees - T1174 within the keyword Agreement opens up the group to enter information relating to form T1174.

Updated

Schedule 5 - Tax calculation supplementary
Schedule 7 - Calculation of aggregate investment income and active business income
Schedule 10 - Cumulative eligible capital deduction
Schedule 23 - Agreement among associated Canadian-controlled private corporations to allocate the business limit
Schedule 31 - Investment tax credit
Schedule 32 - Claim for SR&ED carried out in Canada
Schedule 47 - Claiming a Canadian film or video production tax credit
Schedule 200 - T2 corporation income tax return
Schedule 342 - Nova Scotia tax on large corporations
Schedule 366 - New Brunswick corporation tax calculation
Schedule 383 - Manitoba corporation tax calculation
Schedule 402 - Saskatchewan manufacturing and processing investment tax credit
Schedule 440 - Yukon manufacturing and processing profits tax credit


Obsolete

Schedule 41 - Agreement among related deposit-taking institutions
Schedule 401 - Saskatchewan manufacturing and processing tax credit

Alberta forms

Updated

AT1 schedule 5 - Alberta royalty tax deduction


Note that two versions of AT1 schedule 5 exist. DT Max will generate the correct version depending on the beginning of the corporation's taxation year.

AT1 schedule 8 - Alberta political contributions tax credit

Manitoba forms

Updated

Manitoba corporation capital tax return

Quebec forms

New

CO-17.SP-V - Information and income return for non-profit organizations


New "in-house"

CO-17.supp - Reduction for investments, loans and advances


Updated

CO-17-V - Corporation income tax return
COR-17.W - Sommaire des champs à saisir des déclarations des sociétés (French only)
CO-771-V - Calculation of the income tax of the corporation
CO-771.R.3-V - Proportion of business carried on in Québec and elsewhere
CO-786 - Déduction pour des ristournes (French only)
CO-1029.8.33.6-V - Tax credit for an on-the-job training period
CO-1029.8.33.13-V - Tax credit with respect to the reporting of tips
CO-1029.8.35 - Crédit d'impôt pour les productions cinématographiques québécoises (French only)
CO-1132-V - Tax on paid-up capital
CO-1137.A-V - $1 Million deduction
CO-1137.E-V - Agreement respecting the $1 Million deduction
CO-1140-V - Paid-up capital
CO-1140.A-V - Paid-up capital to be used for purposes other than the calculation of tax on capital
CO-1159.2-V - Compensation tax for financial institutions
MR-69-V - Power of attorney, authorization to communicate information, or revocation


Obsolete

COR-17.X - Sommaire des champs à saisir des formulaires connexes au CO-17

Reminder

In order to implement certain rules of the Charte de la langue française, the ministère du Revenu du Québec requires that corporations established in Quebec file their annual income tax return using the official forms, which are drafted in French only. Consequently, DT Max prints all Quebec forms in French when launching a Quebec production print job.