- T101C Part XII.6 Tax Return
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
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Year 1
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Year 2
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Year 3
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Year 4
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1
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Effective date of renunciation when using look-back rule – must be December 31 of Year 1 | ||||||||||||||||||||||||||||||||||||||
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2
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2
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2
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Renunciation period when using the look-back rule – must be January, February or March of Year 2 | ||||||||||||||||||||||||||||||||||||
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3
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Latest date to
file a renunciation using the look-back rule without being subject
to penalties if the renunciation was made in March (note: Form T101A must be filed in the month following the month the renunciation was made). |
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4
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Latest date to file Part XII.6 tax without being subject to penalties – before March of Year 3. | ||||||||||||||||||||||||||||||||||||||
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5
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Latest date to renounce expenditures that were incurred in the 24 months following the agreement – before March of Year 4. | ||||||||||||||||||||||||||||||||||||||
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6
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Latest date to file a renunciation made in February of Year 4. | ||||||||||||||||||||||||||||||||||||||
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.
T101C – Part XII.6 Tax Return
Where the look-back rule was used to renounce CEEs, the corporation is required to pay a tax under Part XII.6 calculated on the portion that was unspent after February of Year 2. The Act provides for a deduction under paragraph 20(1)(nn) in computing the corporation's income in respect of the tax.
Part 2 – Calculation of the Part XII.6 Tax
Columns A & B: Amounts renounced as a consequence of the look-back rule: The sum of the amounts in columns A and B should be equal to the renunciation on line 61 filed in the prior year in Form T101A. The amounts in columns A and/or B should be the same for all of the months.
Columns C & D: Cumulative expenses incurred before the end of the month: Enter the cumulative amount for each month to the maximum equal to the amount that was renounced under the look-back rule. The cumulative amount appearing in columns C and D should not exceed the amount in columns A and B respectively.
Columns B & D: Enter amounts in these columns only if the province in which the expenses were incurred has a tax similar to Part XII.6.
Column E: Prescribed rate: The prescribed interest rates are those that were in effect for each month of Year 2. The rates may be obtained from our website at www.cra-arc.gc.ca .
Column F: Multiplier: There is an additional tax of 10% on the portion of the expenses not incurred by the end of December of Year 2.
Example : The corporation renounced $1,000,000 under the look-back rule with an effective date of December 31, 2003. The cumulative expenses incurred in 2004 are listed in column "C", and the prescribed interest rates are those in effect in 2004. The Part XII.6 tax calculation is done on a monthly basis, and the total is due before March 2005.
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Amounts renounced
using the look-back rule |
Cumulative expenses
incurred before the end of the month |
Prescribed
rate |
F
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Monthly
Calculation (A+B/2-C-D/2) X (E/12+F/10) |
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A
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B
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C
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D
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E
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| January |
1,000,000
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10,000
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0%
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0
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-
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| February |
1,000,000
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-
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35,000
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-
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5%
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0
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4,020.83
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| March |
1,000,000
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-
|
50,000
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-
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5%
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0
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3,958.33
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| April |
1,000,000
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-
|
75,000
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-
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5%
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0
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3,854.17
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| May |
1,000,000
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-
|
100,000
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-
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5%
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0
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3,750.00
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| June |
1,000,000
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-
|
200,000
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-
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5%
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0
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3,333.33
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| July |
1,000,000
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-
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300,000
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-
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4%
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0
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2,333.33
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| August |
1,000,000
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-
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500,000
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-
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4%
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0
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1,666.67
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| September |
1,000,000
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-
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600,000
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-
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4%
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0
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1,333.33
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| October |
1,000,000
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-
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700,000
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-
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5%
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0
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1,250.00
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| November |
1,000,000
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-
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800,000
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-
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5%
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0
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833.33
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| December |
1,000,000
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-
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1,000,000
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-
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5%
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1
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-
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Subtotal
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(90)
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26,333.33
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Deduct: If the amount is an
amendment to a previous calculation, the amount
of the Part XII.6 tax previously remitted with respect to this financing, otherwise zero. |
(92)
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Part XII.6 tax (90) –
(92)
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(95)
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26,333.33
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Part 3 – Penalty calculation
Form T101C should be filed before March of Year 3 if the amount renounced under the look-back rule remained unspent by the end of February of Year 2. If the form is filed after the filing deadline, the late filing penalty must accompany the form.
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.