- T101B - Adjustments to Canadian Exploration Expenditures (CEE) and Canadian Development Expenditures (CDE) Previously Renounced
Filing forms T101A, B, C AND D
Forms T101A, B, C and D have a checklist to help you prepare a complete return. An authorized officer must sign and date in the "Certification" area each form that is filed.
Who is required to file Forms T101A, B, C and D
A PBC is required to complete and file the appropriate T101 forms to renounce resource expenses (T101A), to reduce or reclassify an amount previously renounced (T101B), to remit any applicable Part XII.6 tax (T101C) or to allocate an amount of assistance among investors (T101D).
Filing deadlines and other dates
The filing deadlines outlined in Forms T101A, B, and C are summarized in Figure 1 on page 4. Year 1 is the year that the agreement was entered into or FTWs exercised as the case may be.
Figure 1: Filing deadlines and other dates
Date of renunciation: This is the date that the renunciation is made, which is generally the earliest date that Form T101A was signed or certified, or when the T101 slips were sent to the investors. This date is relevant since the renunciation must be filed in the month following the month that the renunciation was made.
The form should be filed for each adjustment that the corporation makes. The adjustment may be a reduction or a reclassification. A reduction is an amount that decreases a previous renunciation, whereas a reclassification re-allocates an amount among the various expenditure types (types of CEEs and CDEs) or rules (general rule v. look-back rule) without reducing the overall renunciation.
Total number of T101 information slips attached: Enter the number of T101 information slips issued to investors.
Part 2 - Adjustments to amounts previously renounced
Step 1: Enter the identification number that was used when you filed Form T101A.
Step 2: Enter the effective date of renunciation that corresponds with the renunciation being adjusted. The effective date of renunciation for the expenditures being adjusted should be the same date that was used in the original renunciation. In cases where more than one renunciation was filed, it is important that the adjustment be applied to the correct renunciation.
Step 3: Enter the amounts that you will require to calculate the amended renunciation.
Is this a reduction requested by the Minister?: Indicate in the appropriate box if this is a reduction requested by, or without any demand by, the Minister.
When the reduction is requested by the Minister under subparagraph 66(12.73)(a)(i), this statement must be filed not later than 30 days after the Minister sent a notice in writing demanding the reduction. Subsection 66(12.73) requires a corporation to reduce any amount previously renounced that is in excess of the amount that could be renounced to the investor and to file a statement in prescribed form indicating the reduction. The prescribed forms include the slips.
If the reduction pertains to an amount that was renounced under the look-back rule as required under subparagraph 66(12.73)(a)(ii), this form must be filed without any demand by the Minister before March of year 3.
Line 75 - Total amounts previously renounced: Enter the amounts that were previously renounced when you filed Form T101A. If a reduction or reclassification has been filed previously, enter the amended renunciation after the adjustments.
Reduction Line 76 - Reduction of expenses previously renounced using the general rule: Enter the reductions that affect renunciations made under the general rule.
Line 77 - Reduction of expenses previously renounced using the look-back rule: Enter the reductions that affect renunciations made under the look-back rule.
Line 78 - Total reduction: Enter the sum of lines 76 and 77 for each column.
Reclassification
Enter the amount of the reclassification. When the reclassification is simply a reallocation from one CEE to another (i.e. Oil & Gas CEEs to Deemed CEEs), T101 slips need not be filed. However, if the reclassificaiton is between CEEs and CDEs, or affects tax credits, then T101 slips must be filed. The reclassification should be positive for an increase and negative for a decrease. The total of all reclassifications should be equal to zero.
Line 79 - Reclassification to (from) the general rule of expenses previously renounced: Enter the reclassifications (increase and decrease) that affect renunciations under the general rule.
Line 80 - Reclassification to (from) the look-back rule of expenses previously renounced: Enter the reclassifications (increase and decrease) that affect renunciations under the look-back rule.
Line 81 - Total reclassification: Enter the sum of lines 79 and 80 for each column.
Line 82 - Amended amount renounced: Enter the total of line 75 less line 78 and plus or minus line 81, as the case may be, for each column.
Step 4: Enter the amended amounts according to the location of the activities. The expenditures identified on line 82 should be allocated to the province(s) and territory(ies) where they have been incurred.
Step 5: Enter the amended eligible resource expenditures qualifying for ITC and provincial tax credits according to the location of the activities. The expenditures should be allocated to the provinces and territories where they have been incurred. The amount qualifying for a federal ITC, or a portion, may also qualify for a provincial tax credit.
Line 84 - Total amount qualifying for ITC: Enter the total of the amounts allocated to the province(s) and territory(ies) that qualifies for the ITC.
Part 3 - Penalty calculation
Form T101B should be filed before March of Year 3 if the look-back rule was used, or 30 days after being notified in writing by the Minister. If the form is filed after the filing deadline, the late filing penalty must accompany the form. Another penalty of up to 25% of the excess renounced will also apply under subsections 163(2.21) and 163(2.22) where:
- A person, knowingly or under circumstances amounting to gross negligence has made or has participated in assentedto or acquiesced in the making of a false statement or omission in the document required to be filed under subsection66(12.73) in respect of a renunciation purported to be made as a consequence of subsection 66(12.66), or
- The person fails to file the document on or before the day that is 24 months after the day on or before which it was required to be filed.
Changes to the T101 information slips
If you prepare amended, or cancelled T101 information slips, send our copies of the informaiton slips and any other forms, with a covering note explaining the changes, to the Ottawa Technology Centre.
Amended T101 information slips - If you have to change some of the data on a T101 information slip for a certain investor, prepare another. Select the appropriate box on the right side of the amended information slip and send two copies to the recipient.
Cancelled T101 information slips - If you issued a T101 information slip by mistake and you want to cancel it, prepare another one with the same data as on the original T101 information slip. Clearly print the word CANCELLED at the top of the information slip and send two copies to the recipient.
Duplicate T101 information slips - If you issue a T101 information slip to replace one that a partner has lost or destroyed, prepare another one with the same data as on the original information slip. Select the "Duplicate" box on the right side of the revised information slip and send two copies to the recipient. You do not have to send us our copies of the duplicate T101 information slips.