Version 9.25 includes the T2 program for fiscal periods ending from 1994 to 2006 and fully supports corporation Internet filing (T2 and CO-17) as well as Ontario CT23 diskette filing (D-File). In this version...Program certificationKnown issues fixed in v9.25 CO-17 - Corporation income tax return Enhanced updating from GIFI data Joint filing of the Annual information return for the Quebec enterprise register and the Corporation income tax return Keywords Modified forms New forms Blank forms Deleted form Program certificationDT Max T2 v9.25 has undergone an authorization process with Revenu Québec for the paper and efile versions of the CO-17 return, and has been approved under number RQ05-CO43. Form TP-985.22 entitled Information return for registered charities and certain recognized organizations, which DT Max now generates, has been authorized under number RQ05-RM70. Known issues fixed in v9.25
Claiming an investment capital tax credit in DT Max CO-17 - Corporation income tax returnThe Quebec aspect of DT Max T2 v9.25 gravitates around version 2005-12 of the CO-17 return. A reading of the CO-17 highlights the following principal ergonomic changes: In the lower right-hand corner of page 1, there is a box reserved for Revenu Québec to indicate form LE-630 (see below). Three new questions pertaining to associated corporations are asked on page 2 and numbered [45], [45a] and [45b]. Question [46] has been added to ask whether the corporation is the beneficiary of a designated trust. Tax credits that appear on page 5 are no longer listed on lines [440ba] and [440o] of version 2004-12 (now removed). A 10-row area has been laid out to accept descriptive codes in boxes [440pi] to [440yi] inclusively to match the amounts found on lines [440pi] to [440yi] respectively. Data entry for this range of tax credits has not changed in DT Max. CO-17 Supp - Associated corporations DT Max already provides two in-house pages as an attachment to the CO-17, one of which is a table of associated corporations (question [44b]), and the other the list of eligible investments. To answer the new question on line [45b] of the CO-17 (corporation associated with one or more CCPC's), a table has been added to the one detailing question [44b]. These additional pages will only print where relevant, i.e. when there are more than four associated corporations. Enhanced updating from GIFI dataWith version 9.25, Assets and GrossRevenue will be part of the keywords that are updated according to GIFI data when you choose Update NetIncome and TaxOnCapital from GIFI. Please note that if the amount is negative, no update will be performed by DT Max. DT Max will synchronize entries according to the following formulas: The Assets keyword (in the TaxOnCapital group) = GIFI-Field [2599] when a GIFI-Form Balance sheet 100 is present. Should GIFI-Field [2599] result in a negative value, Assets will be left blank. In this case, enter zero. The GrossRevenue keyword (in the NetIncome group) = total of all GIFI-Field [8299] + [9659] when GIFI-Form Income statement 125 is present. Should the total result in a negative value, GrossRevenue will be left blank. In this case, enter zero. Joint filing of the Annual information return for the Quebec enterprise register and the Corporation income tax return
Starting in 2006 corporations, just like individuals operating a business, on their TP-1 return, will pay their registration fee to the Québec enterprise register through their CO-17 corporation income tax return. Assessment of registration fees is made by Revenu Québec upon receipt of the income tax return. With T2 v9.25, DT Max generates form LE-630 entitled Déclaration de renseignements pour le Registre des entreprises du Québec, which must be filed with the CO-17 return, and calculates the required annual registration fees according to the type of business. The fee will appear on line [441b] of the CO-17 (and CO-17.SP return for non-profit organizations). The table of annual registration fees payable per type of business is shown below:
The annual registration fees of the QER are nil for the 1st year and the year following registration. The corporation receives from Revenu Québec an État de renseignements au Registre des entreprises du Québec that replicates the information of the business held at the enterprise register. A completed form LE-630 is required, whether or not changes have occurred with respect to the information held at the register. The underlying keywords that generate form LE-630 are very similar to those found in DT Max T1. In DT Max T2 however, it is the AnnualReturn group for the Quebec jurisdiction that produces form LE-630. Taxation year and calculation of registration feesThe amount of registration fees is levied once per calendar year in the tax return of the taxation year that covers January 1st. In certain specific cases, it is possible for a taxation year to cover more than one January 1st (e.g. more than 365 days); in such cases the amount of fees is doubled. LE-630 in 2005Although NOT required in 2005, DT Max allows for the generation of form LE-630 while issuing the following warning in the data editor: AnnualReturn for Quebec not required for 2005 - please verify. KeywordsNew keywordsFOREIGN-BANK
PAYMENTMETHOD
FEE-OV
HRWAGE-OTHCR
HRWAGE-OTHCR.S
CDN-PUC
CCPC.RE
PREV-CDN-PUC
TYPE.RE
BENEFICIARY
QC-BUSLIM
INSURCORP-PUC
Deleted keywordsDue to the withdrawal of form CO-1029.8.36.7, the following keywords have been removed:
ASSISTANCE.J REFERENCE-YR DAYS-BUS-QUE JOB-CREATION SALARY&WAGES ALLOCPAYROLL The following keyword has been removed from the SR&EDTAXCRQ group:
Modified forms
We have integrated the very latest version of the income tax calculation schedule (including the small business deduction) dated 2006-04. This means that DT Max incorporates as early as v9.25 amendments introduced in the budget speech of March 23, 2006, concerning the new income tax rate reduction from 8.5% to 8%. Please be advised that the English version of this form has yet to be released by Revenu Québec, and that it is therefore only available in French. The small business deduction (SBD) occupies an entire page in Part 6. You will notice on page 6 a table of aggregate rates applicable to income tax calculations for years 2005 to 2009 and following. The table features aggregate rates for the general deduction on one side that goes from 7.35% to 4.35% between 2005 and 2009, and on the other side, the SBD that goes from 1.4% to 3.9% over the same period of time. DT Max will handle the prorating of the number of days in the taxation year that fall under each calendar year to determine the aggregate rates. These rates will affect relevant calculations on page 5 of the CO-771 (rates R and S). Other modified forms: Forms marked with an asterisk (*) have not yet been released in English by Revenu Québec. * CO-17.SP - Non profit organization return* COR-17.W - Keying summary of the corporation income tax return * CO-502 - Dividend out of capital dividend account * CO-737.18.18 - Remote regions SMB exemption * CO-1029.8.33.6 - Tax credit for an on-the-job training period * CO-1029.8.33.13 - Tax credit with respect to the reporting of tips CO-1140 - Calculation of the paid-up capital of a financial institution CO-1140.A - Paid-up capital to be used for purposes other than the calculation of tax on capital CO-1159.2 - Compensation tax for financial institutions CO-1175.4 - Tax on capital for life insurers FM-220.3 - Forest producers' application for a property tax refund * RD-222 - Deduction respecting scientific research and experimental development expenditures * RD-1029.7 - Tax credit for salaries and wages - R&D * RD-1029.8.6 - Tax credit for university research or research carried out by a public research centre or a research consortium Federal Schedule 383 - Manitoba corporation tax calculationNew forms
Assets belonging to class 43 (manufacturing and processing equipment) may under certain conditions constitute an eligible investment for purposes of the paid-up capital and yield a credit. The calculation is performed on form CO-1139. The CAPITALTAX-CR keyword opens a group allowing for data entry of the CO-1139 information. A corporation other than a financial institution that makes an eligible investment may claim a non-refundable tax credit equivalent to 5% of such an investment. The maximum credit is the amount of capital tax otherwise payable. The credit on capital tax has been increased to 15% for eligible investments in the forestry industry. To respond to this measure while waiting for amendments from Revenu Québec, the following solution has been proposed: perform the calculation on an attached sheet and add the result to line 65 of form CO-1139. CO-771.1.3 - Associated corporation agreement respecting the allocation of the business limit and calculation of the business limit With the reintroduction of the Quebec small business deduction, the MRQ has reinstated the form that allowed for the allocation of the business limit used in its calculation amongst associated corporations. The CO-771.1.3 presents the allocation of the $400,000 business limit for taxation years ending after December 31, 2005. Use the Qc-BusLim keyword to make your allocation, within the RelatedParty group. The portion attributed to the claiming corporation will go to line [420ab] of the CO-17, in addition to being part of the calculation of the small business deduction on form CO-771 (line 57). The Type.re keyword in the RelatedParty group will indicate whether or not the associated corporation is a financial institution or an insurance corporation. TP-985.22 - Information return for registered charities and certain recognized organizations We are introducing with this version the Quebec equivalent of the federal T3010A form geared towards registered charitable organizations and certain recognized organizations. Data entry is made in the CharityReturn group. CO-771-R.14 - Proportion of business carried on in Quebec and elsewhere by an insurance corporation This new form processes multiple jurisdictions for insurance companies. FederalCAIS - Harmonized Canadian agricultural income stabilization program Blank formsThe following forms have been added to the list of forms that can be printed blank.
CO-1179 - Logging operations return CO-1029.8.36.EL - Tax credit for book publishing Deleted formCO-1029.8.36.76 - Application for the tax credit for job creation in the clothing and footwear industry |