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Consult our Knowledge Base to quickly find the information you need!

Our Knowledge Base contains an array of articles answering technical and tax questions most frequently asked to Support Centre agents. All you need to do is enter a few key words and the articles display in order of relevance to provide you with valuable information that will accurately answer your questions.

Overview – Version 2019 2.0

Corporate Taxprep 2019 v.2.0 includes several technical and tax changes. Here is a summary of the main topics addressed in this document.

Electronic filing of the amended Québec income tax return

You can now electronically transmit an amended Québec income tax return. For more information, consult the note relating to this subject.

AT1 – Alberta Corporate Income Tax Return (Jump code: AJ)

The form has been modified to include the basic tax rate that will decreased from 11% to 10% on January 1, 2020. For more information, consult the note relating to this subject.

New Forms

The following forms have been added to the program:

• CO-400, Deduction Related to Resources (Jump Code: Q12);
• CO-771.1.3.AJ, Adjusted Business Limit (Jump Code: 77113AJ);
• CO-1029.8.33.TE, Tax Credit to Foster the Retention of Experienced Workers – SMB (Jump Code: 1029833TE); and
• CO-1029.8.33.TF, Agreement Respecting the Tax Credit to Foster the Retention of Experienced Workers – SMB (Jump Code: 1029833TF).

Training

To allow you to familiarize yourself with the new enhanced Taxprep interface, the Taxprep – New User interface free live Webinar is available to you. To learn about the presentation dates and register for the session most convenient for you, consult the training sessions calendar.

To consult the other training options available regarding Corporate Taxprep (seminars, Webinars, tutorials and more), access the "Training" section of the Taxprep Web site. You can also access it from the program, by selecting Get Taxprep Training in the Help menu.

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Improve Your Productivity

Federal

EFILE Information (Jump Code: EFILE INFO)

In the NetFile Québec or Clic Revenu section, a history table has been added to review information on the electronic transmissions of the original or amended Corporation Income Tax Return (Jump Code: QJ).

Schedule 3 – Dividends Received, Taxable Dividends Paid, and Part IV Tax Calculation (Jump Code: 3)

In Part 1, the line used to enter deductible dividends under paragaph 113(1)c has been split into two to make the difference between dividends received from a foreign affiliate considered a connected corporation and those of a foreign affiliate not considered a connected corporation. Therefore, the custom line Dividends deductible from taxable income under paragraph 113(1)(c) ITA (this amount is included on line 320 of the T2 return) has been renamed Other dividends deductible from taxable income under paragraph 113(1)(c) ITA which are not included on the above line and the line Dividends deductible from taxable income under paragraph 113(1)(c) ITA received from a foreign affiliate which is considered a connected corporation under subsection 186(4) ITA has been added under column 275 in Part 1.

This makes it possible to include the dividend received from a foreign affiliated corporation on line 730, in Part 2 of Schedule 7 (Jump Code: 7) when this corporation would be a connected corporation under subsection 186(4) ITA, if this subsection applied. The amount shown on this new line will also be included on line 320 of Schedule 200 (Jump Code: J), on the line Taxable dividends deductible under sections 112 and 113 in Part 6 of Schedule 21 (Jump Code: 21), on the line Taxable dividends deducted per Schedule 3 in the Foreign column of the Net taxable dividends section of Schedule 7, on the line Dividends deductible from taxable income under subsection 746(c) TA (this amount is included on line 256 of the CO-17 return) in Part 1 of Form CO-17S.3 (Jump Code: Q3) and on custom line Dividends deductible from taxable income under paragraph 113(1)(c) ITA in Part 2 of Schedule 510 (Jump Code: 510).

Note that the amounts entered on those two custom lines do not have to be reported to the CRA, because paragraph 113(1) (c) ITA does not apply to Schedule 3. However, they allow the program to correctly perform the calculation of certain items relating to the return. In addition, completing these lines does not make Schedule 3 applicable.

Verify if all or part of the amount on line Other dividends deductible from taxable income under paragraph 113(1)(c) ITA which are not included on the above line comes from a foreign affiliated corporation that would be a corporation connected under subsection 186(4) ITA, if this subsection applied. If this is the case, enter this amount on the new custom line Dividends deductible from taxable income under paragraph 113(1)(c) ITA received from a foreign affiliate which is considered a connected corporation under subsection 186(4) ITA and adjust the amount on the line Other dividends deductible from taxable income under paragraph 113(1)(c) ITA which are not included on the above line accordingly.

Tax Scenarios Worksheet (Jump Code: SCENARIOS)

To enhance the monitoring of the scenarios you create for your clients, two lines were added in the “Federal information (T2)” section, i.e. the lines Dividends paid – Regular and Dividends paid – Eligible.

Québec 

Transmission of amended CO-17 returns

The amended tax return can now be transmitted electronically. The program will transmit a complete amended CO-17 return with the desired changes, and not Form CO-17.R (Jump Code: QJR).

The process to prepare an amended CO-17 return is similar to the process already in place for the automatic preparation of an adjustment request. We recommend that you use a copy of the original tax return when you prepare an amended tax return. Answer Yes to the question Is this an amended Québec tax return? in Form Identification (Jump Code : ID) and make the amendments in the Québec return.

When you answer Yes to the question Is this an amended Québec tax return? in Form Identification, a copy of Form CO-17.R will be created and the EFILE CO-17 status will no longer be Accepted, so that you will then be able to amend the return to make the desired changes.

Once the transmission is accepted by Revenu Québec, the confirmation number and the date the transmission is accepted will be saved in Forms CO-17.R and EFILE INFO (Jump Code: EFILE INFO).

At the top of the CO-17.R form, the custom question Do you want to electronically retransmit the amended CO-17 return instead of mailing a CO-17.R form? has been added. The answer to this question will be Yes when you answer Yes to both questions Is this an amended Québec tax return? in Form Identification and Do you want to electronically file this tax return with Revenu Québec? in Form RSI-EFILE-Bar codes (Jump Code: RSI-EFILE-BAR CODES) in the Québec (Internet Filing) section.

Note that a CO-17.SP return (Jump Code: QJSP) cannot be transmitted electronically and EFILE exclusions that apply to the transmission of original CO-17 returns also apply to the transmission of amended returns.

If you would still like the amendments made to the return to display in Form CO-17.R.

If you want to prepare a summary of amendments made in the return, select the check box Select this check box to prepare an automatic CO-17.R form in Form CO-17.R before amending the return. The lines on which data was modified since this box was selected will then display in Form CO-17.R, as well as the expected change to the balance due or refund. You can print Form CO-17.R for reference purposes or to provide it to the client. However, the authorized representative is not required to sign the form.

For more information, consult the Question used to specify whether it consists of an adjustment request concerning a Québec tax return section of the Corporate Identification and Other Information topic.

Filing of a copy of Schedule 200 and Schedule 7 with the Québec return

As per Revenu Québec requirements, a copy of Schedule 200 (Jump Code: J) must be filed with the Québec return when a corporation assigns a portion of the business limit to another CCPC under subsection 125(3.2) ITA. Previously, diagnostic F106 was prompting you to file a copy of Schedule 200 in this situation. Now, when the corporation has a permanent establishment in Québec and an amount is indicated on line K in the “Small business deduction” section of Schedule 200:

• A copy of this schedule is automatically attached to the Québec return when this return is electronically filed;
• A copy of this schedule is printed for the Québec return with the “Client,” “GOVT RSI, Bar Codes,” and “Office” print formats.

In addition, a copy of Schedule 7 (Jump Code: 7) must be filed with the Québec return in the following situations:

• Another CCPC assigns a portion of the business limit to the corporation under subsection 125(3.2) ITA;
• The corporation assigns a portion of the specified partnership business limit to a designated member of a partnership under subsection 125(8) ITA;
• A member of a partnership assigns a portion of the specified partnership business limit to the corporation under subsection 125(8) ITA.

Before, diagnostics F127, F128 and F129 were prompting you to file a copy of Schedule 7 in each of these situations. Now, when the corporation has a permanent establishment in Québec and an amount is indicated on line 335, 336 or CC of Schedule 7:

• A copy of this schedule is automatically attached to the Québec return when this return is electronically filed;
• A copy of this schedule is printed for the Québec return with the “Client,” “GOVT RSI, Bar Codes,” and “Office” print formats.

Note: The jump codes used for the print templates are T2 (QC) and 7 (QC).

New Forms

Québec 

CO-400 – Deduction Related to Resources (Jump Code: Q12)

This Québec government form replaces the custom Form Resources, Amount Respecting Resources for Québec (Jump Code: Q12) and is used to calculate the deduction for resources to determine the net income for income tax purposes in Québec. The different parts used to calculate the available deductions have been reordered and do not follow the numbering of the corresponding parts in Schedule 12 (Jump Code: 12) anymore. The custom questions Is the corporation a development corporation carrying on an oil business? and Is the corporation a development corporation carrying on a mining business? in Part 4 are used to determine which one of the three columns in part 4.1 and which basic rate of the deduction on line 127 are applicable to the situation of the corporation.

CO-771.1.3.AJ – Adjusted Business Limit (Jump Code: 77113AJ)

Multiple copies can be created for Part 2, which is used to calculate the adjusted aggregate investment income (AAII) of the filing corporation and its associated corporation for taxation years ended in the previous calendar year. For the filing corporation, the first copy of Section 2.2 is automatically completed with the amounts entered in the Québec CO-771.1.3.AJ – Adjusted business limit section in Schedule 9 WORKCHART (Jump Code: 9 WORKCHART) of the filing corporation. For associated corporations, a copy of Part 2 is automatically created and data on lines 06 to 09 in Section 2.1, as well as amounts on lines 11, 12, 14 to 18, 21 and 23 in Section 2.2 are calculated from the relevant data entered in the Québec CO-17 – Corporation income tax return and Québec CO-771.1.3.AJ – Adjusted business limit sections of Schedule 9 WORKCHART.

Automatically created copies relate only to the last taxation year ending in the previous calendar year of the corporation. When a corporation (filing or associated) has more than one taxation year ending in the previous calendar year, a copy must be manually created using the Add button, selecting the name of the corporation from the drop-down menu on line 08 and completing the relevant lines manually. For more information, consult the note relating to Schedule 9 WORKCHART.

Parts 3 and 4 are used to calculate the business limit reduction for taxation years starting after 2018. When an amount is calculated on line 28 and the amount of paid-up capital on line 56 of Form CO-771 (Jump Code: 771) is less than $15 million, the amount on line 38 is updated to line 94a of Form CO-771.

CO-1029.8.33.TE – Tax Credit to Foster the Retention of Experienced Workers – SMB (Jump Code: 1029833TE)

This multiple copy form is for any corporation that has an establishment in Québec where it carries on a business, has a specified paid-up capital for the previous taxation year, including that of the members of an associated group, of less than $15 million and whose number of remunerated hours of its employees, calculated for the taxation year, is greater than 5,000 (provided it is not a corporation in the primary or manufacturing sector).

The refundable tax credit is calculated on the employer’s contributions paid by the corporation with respect to an employee. The rate of the refundable tax credit will vary based, firstly, on the individual's age and, secondly, the corporation's total payroll. Thus, in respect of an employee aged at least 60 but no older than 64, the tax credit that can be claimed by a qualified corporation with a total payroll of $1 million or less, on the employer contributions paid in respect of such an employee, will be calculated at a rate of 50% and can total as much as $1,250 annually. In respect of an employee aged at least 65, the tax credit such a corporation can claim on employer contributions paid in respect of such an employee will be calculated at a rate of 75% and can total as much as $1,875 annually.

If the corporation claims the tax credit as both a qualified corporation and a qualified member of a partnership, complete a copy of the form for each of these claims.

The “Identification” custom part has been added on screen only. The answers to the questions Is the paid-up capital determined for the preceding taxation year, including that of members of an associated group, less than $15 million? and Does the number of remunerated hours of its employees, calculated for the taxation year, exceed 5,000 or is the corporation in the primary or manufacturing sector? will be defined when the qualified or specified expenditure is incurred by the corporation.

The answer to the question Is the paid-up capital determined for the preceding taxation year, including that of members of an associated group, less than $15 million? will be “Yes” when the amount on the line Paid-up capital of the previous taxation year used for the calculations of Form CO-1029.8.33.TE of the filing corporation plus the total of the amounts on the lines Paid-up capital of the previous taxation year (adjusted) of the associated corporations entered in Schedule 9 WORKCHART (Jump Code: 9 WORKCHART) is less than $15 million.

The answer to the question Does the number of remunerated hours of its employees, calculated for the taxation year, exceed 5,000 or is the corporation in the primary or manufacturing sector? will be “Yes” when the number of hours on line 07a or 07b of Form CO-771 (Jump Code: 771) is greater than 5,000 or if the proportion of activities in the primary sector or the manufacturing sector indicated on line 187c of Form CO-771 is greater than 25%.

For each eligible employee, complete Part 4 on a separate copy. Custom check box Select this box if you want to roll forward information about the employee has been added above Section 4.1 of the form, on screen only, to allow you to roll forward or not data in Part 4. This box is selected by default. When rolling forward a client file, if this box is selected, the data entered in fields 30 to 32 in the subsection concerning the employee as well as the answer to the question Is the qualified corporation or qualified partnership associated with at least one other qualified corporation in the calendar year in question and have they paid salary and wages or other remuneration to this employee? will be retained.

The table in Part 5 will be completed from the information entered in Part 4.

When opening a client file prepared with a prior version of Corporate Taxprep, if an amount was entered on line 107 of Form QC L440P-Y (Jump Code: L440P), it will be retained as an overridden amount. Complete the sections of Form CO-1029.8.33.TE relating to this credit and cancel the override on line 107 of Form QC L440P-Y for the credit calculated in Form CO-1029.8.33.TE to be updated in Form QC L440P-Y.

CO-1029.8.33.TF – Agreement Respecting the Tax Credit to Foster the Retention of Experienced Workers – SMB (Jump Code: 1029833TF)

This multiple copy form allows you to allocate the qualified or specified expenditure when the corporation is associated with at least one other qualified corporation and they paid salary and wages or other remuneration to an employee. The “Identification” custom part has been added at the top of the form to identify which type of entity incurred qualified or specified expenditures. To complete Part 3, you must have answered “Yes” to custom question Is the qualified corporation or qualified partnership associated with at least one other qualified corporation in the calendar year in question and have they paid salary and wages or other remuneration to this employee? in Part 4 of Form CO-1029.8.33.TE (Jump Code: 1029833TE). A copy of Form CO-1029.8.33.TF PART 3 is then automatically created under the entity that incurred the expenditure. If you want to delete a copy, access Form CO-1029.8.33.TE and answer “No” to the question.

Column A in Part 4 is completed based on the identification numbers or the names entered in the Part 4 completed for all employees.

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Deleted Forms

Federal

RC366 – Direct Deposit Request for Businesses (Jump Code: RC366)

This form has not been available since July 5, 2019, on the CRA Web site. Therefore, it was removed from our program. For information on how you can sign up for direct deposit or to update information, go to Direct deposit – Canada Revenue Agency.

Summary to Export Taxprep Data to GI (Jump Code: SUM GI)

Québec 

CO-1029.8.36.HE – Tax Credit for the Modernization of a Tourist Accommodation Establishment (Jump Code: 1029836HE)

CO-1029.8.36.HF – Agreement Concerning the Annual Limit of the Tax Credit for the Modernization of a Tourist Accommodation Establishment (Jump Code: 1029836HF)

CO-1029.8.36.MA – Tax Credit for the Diversification of Markets of a Québec Manufacturing Company (Jump Code: 1029836MA)

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Updated Forms

* Note that form titles followed by an asterisk (*) have been updated according to the most recent version issued by the applicable tax authority.

Federal

Schedule 200 – T2 Corporation Income Tax Return (Jump Code: J)*

In the June 17, 2019, Notice of Ways and Means Motion to amend the Income Tax Act, paragraph 110(1)(e) ITA has been added to allow a corporation to deduct, in calculating its taxable income, the amount of the benefit deemed by subsection 7(1) ITA to have been received by the taxpayer in respect of a non-qualified security under an employee stock options agreement. For more information, consult the June 17, 2019, Notice of Ways and Means Motion to amend the Income Tax Act.

To that end, custom line a, Employer deduction for non-qualified securities under an employee stock options agreement, has been added under line 350 in the Taxable income section.

Schedule 1 – Net Income (Loss) for Income Tax Purposes (Jump Code: 1)*

The calculation of the amount on line 101 has been updated to include the amount from line 7010 of Schedule G9998 (Jump Code: G9998).

When opening a client file prepared with a prior version of Corporate Taxprep, make sure to verify whether any adjustments are required on lines 239 and/or 347 resulting from the change to the calculation on line 101.

Schedule 2 – Charitable Donations and Gifts (Jump Code: 2)*

Schedule 4 – Corporation Loss Continuity and Application (Jump Code: 4)

In the June 17, 2019, Notice of Ways and Means Motion to amend the Income Tax Act, paragraph b) of the description of E in the definition non-capital loss in subsection 111(8) ITA has been modified to take into account the new amount of an employer for non-qualified securities under an employee stock options agreement that is added to the Taxable income section of Schedule 200 (Jump Code: J). As a result, line 1d, Amount of an employer for non-qualified securities under an employee stock options agreement deductible under paragraph 110(1)(e), has been added to Part 1.

Schedule 5 – Tax Calculation Supplementary – Corporations (Jump Code: 5)*

The following lines have been added:

• line 562, Nova Scotia innovation equity tax credit;
• line 563, Nova Scotia venture capital tax credit;
• line 699, Yukon business carbon price rebate.

Schedule 8 WORKCHART – Capital Cost Allowance (CCA) Workchart (Jump Code: 8 WORKCHART)

As a result of the tabling of Bill 42, on November 7, 2019, by the Government of Québec, the following modifications have been made to the calculation of the amount on line E in subsection Qualified property that was acquired after November 20, 2018, and before December 4, 2018 of Section Additional capital cost allowance (CCA) for Québec to be compliant with section 156.7.5 TA, as proposed in section 37 of Bill 42:

• the following four lines have been removed:

• Capital cost of qualified property that became available for use in the current taxation year before December 4, 2018 that is not accelerated investment incentive property;

• Capital cost of qualified property that became available for use in the current taxation year before December 4, 2018 that is accelerated investment incentive property;

• Capital cost of qualified property acquired after December 3, 2018 but before July 1, 2019 that became available for use in the current taxation year and that is not accelerated investment incentive property; and

• Capital cost of qualified property acquired after December 3, 2018 but before July 1, 2019, that became available for use in the current taxation year and that is accelerated investment incentive property;

• the line Capital cost of qualified property that became available for use in the current taxation year before July 1, 2019 has been added to replace the removed lines;
• the field Amount added to UCC attributable to all qualified properties in the class has been renamed Half of the capital cost of qualified property that became available for use in the current taxation year and is equal to half of the amount entered on the new line Capital cost of qualified property that became available for use in the current taxation year before July 1, 2019.

When opening a client file prepared with a prior version of Corporate Taxprep, the total of the amounts entered on the four removed lines will be entered on the line Capital cost of qualified property that became available for use in the current taxation year before July 1, 2019.

When rolling forward a client file saved in a prior version of Corporate Taxprep, the amount rolled forward to the two lines Amount of line E from the first year will take into account the adjustments made to the calculation performed on line E.

EFILING the return of a corporation that acquired classes 43.1 and 43.2 property in the taxation year

As a result of a CRA request, corporation income tax returns (T2) can no longer be EFILED when one of diagnostics R0080200 or R0080300 concerning missing information relating to classes 43.1 and 43.2 displays in the RSI-Bar codes tab of the diagnostics pane.

Schedule 8 WORKCHART ADD – Additions and Dispositions Workchart (Jump Code: 8 WORKCHART ADD)

Changes have been made to the “Information relating to zero-emission vehicles” section, which displays for a CCA class 54 property. The calculation of the cost and the calculation of the capital cost of a zero-emission passenger vehicle have been modified to ensure conformity with subparagraph 13(7)(i)(i) and subsection 13(7.1) ITA. Any government assistance is now deducted in the calculation of the field “Original capital cost” after the application of the $55,000 capital cost limit, while the amount in the field “Eligible cost of addition” only consists of the purchase cost and the applicable sales tax. To reflect these changes, the layout of the fields in this section has been modified and the field “Deemed capital cost under subparagraph 13(7)(i)(i) (the lesser of the cost of addition and the capital cost limit)” has been added to the “Addition of a zero-emission passenger vehicle” subsection.

In addition, the fields “Cost of the vehicle” and “Government assistance received or repaid” have been added to the “Disposition of a zero-emission passenger vehicle” subsection. These fields are used to calculate the amount in the field “Proceeds of disposition” of the “Disposition” section for a zero-emission passenger vehicle when the corporation deals at arm’s-length with the purchaser. The field “Government assistance received or repaid” is used to enter any government assistance received or repaid regarding the vehicle, according to the changes announced in section 52 of the Legislative Proposals Relating to Income Tax and Other Legislation published on July 30, 2019.

When opening a client file prepared with a prior version of Corporate Taxprep and when rolling forward a client file, the amounts that will be indicated in the “Information relating to zero-emission vehicles,” “Addition” and “Disposition” sections will take into account all the modifications to the calculations described above.

Schedule 9 WORKCHART – Related and Associated Corporations Workchart (Jump Code: 9 WORKCHART)

Part Québec CO-771.1.3.AJ – Adjusted business limit has been added to record data from the last taxation year ending in the previous calendar year. This data is used to calculate the adjusted aggregate investment income to compute the Québec income tax. When an amount is entered on at least one of the lines under the title Data related to the last taxation year that ended in the preceding calendar year and the resulting amount of adjusted aggregate investment income (AAII) is greater than “0,” a copy of Part 2 in Form CO-771.1.3.AJ (Jump Code: 77113AJ) is automatically created and the amounts are updated to the corresponding lines for the filing corporation and its associated corporations (other than corporations for which association code “5” is selected). For more information, consult the note relating to Form CO-771.1.3.AJ.

In a taxation year beginning in 2019, these lines will be calculated from amounts 2A to 2L and line 741 in Part 2 of Schedule 7 (Jump Code: 7), when line 744 has a positive amount.

Otherwise, when rolling forward a client file with a taxation year starting in the previous calendar year, the amounts on lines 705 to 741 in Part 2 of Schedule 7, will be updated to the corresponding lines in this section of the filing corporation’s copy.

The line Total adjusted aggregate investment income for prior taxation years that endedin the preceding calendar year has been moved from Part “Québec CO-771.1.3 - Associated corporation’s agreement respecting the allocation of the business limit” to Part “Québec CO-771.1.3.AJ – Adjusted business limit.” The amount on this line represents the total of the amounts on line 24 in the copies of Part 2 of Form CO-771.1.3.AJ in which the name of the corporation corresponds to the name of the corporation entered at the top of Schedule 9 WORKCHART.

As a result of the removal of Form CO-1029.8.36.HF (Jump Code: 1029836HF), the “Québec CO-1029.8.36.HF – Agreement respecting the annual tax credit limit for the modernization of a tourist accommodation establishment” section has been removed because this credit can only be claimed for a taxation year that ended before 2017.

The Section “Québec CO-1029.8.33.TE - Tax credit to foster the retention of experienced workers – SMB” has been added to calculate the paid-up capital of the previous taxation year of the filing corporation and enter the paid-up capital used to determine the applicability of Form CO-1029.8.33.TE (Jump Code: 1029833TE).

Schedule 12 – Resource-Related Deductions (Jump Code: 12)*

New custom lines have been added to Parts 5 and 6 in order to calculate, respectively, the accelerated Canadian development expenses and the accelerated Canadian oil and gas property expenses that are eligible for the additional deduction. These lines replace custom lines Accelerated Canadian development expense, less reductions to this expense in Part 5 and Accelerated Canadian oil and gas property expense, less reductions to this expense in Part 6 that were used to calculate this deduction.

When opening a client file prepared with a prior version of Corporate Taxprep, if an amount is entered on the lines Accelerated Canadian development expense, less reductions to this expense in Part 5 and Accelerated Canadian oil and gas property expense, less reductions to this expense in Part 6, it will be retained as an overridden value, on the new lines Adjusted ACDE (amount S6) and Adjusted ACOGPE (amount X6) respectively. In addition, data entered in the fields representing the rate and the amount of the deduction in the custom subparts “Deduction in respect of the accelerated Canadian development expense” in Part 5 and “Deduction in respect of the accelerated Canadian oil and gas property expense” in Part 6 will not be retained. When these files contain overridden data, the amount calculated on lines 345 and 445 will be retained as an overridden value.

Moreover, custom lines Government assistance repaid in the tax year have been added to the calculation detail of lines “other additions” (lines 220, 310 and 415) in Parts 4, 5 and 6 respectively.

Finally, custom lines have been added to explicit the calculation for the current-year claim of a successor corporation on lines 295, 395 and 495. Note that new lines Current-year claim under paragraph 66.7(3)(b), Current-year claim under paragraph 66.7(4)(b) and Current-year claim under paragraph 66.7(5)(b) have to be manually completed.

Schedule 17 – Credit Union Deductions (Jump Code: 17)*

The following lines have been removed from the form:

• line 2J, Amount 2I by the number of days in the taxation year after 2016;
• line DD, Income eligible for the Manitoba lower tax rate for the period before January 1, 2019;
• line EE, Income eligible for the Manitoba lower tax rate for the period after December 31, 2018; and
• line FF, Subtotal.

In addition, in Part 4, lines have been added with respect to the phase out of the additional deduction for credit unions. When opening a client file prepared with a prior version of Corporate Taxprep, certain overridden amounts on the above-mentioned lines might not be retained. Please verify if adjustments are required.

Schedule 23 – Agreement Among Associated Canadian-Controlled Private Corporations to Allocate the Business Limit (Jump Code: 23)*

Schedule 27 – Calculation of Canadian Manufacturing and Processing Profits Deduction (Jump Code: 27)*

T661 – Scientific Research and Experimental Development (SR&ED) Expenditures Claim (Jump Code: 661)

The year’s maximum pensionable earnings amount for purposes of the Canada pension plan has been updated for the 2020 calendar year (and is now $58,700). This amount is used to determine the specified employees’ salary or wages when the proxy method is selected to calculate the SR&ED expenditures.

Schedule 43 – Calculation of Parts IV.1 and VI.1 Taxes (Jump Code: 43)*

Schedule 49 – Agreement Among Associated Canadian-Controlled Private Corporations to Allocate the Expenditure Limit (Jump Code: 49)*

Schedule 50 – Shareholder Information (Jump Code: 50)*

Schedule 53 – General Rate Income Pool (GRIP) Calculation (Jump Code: 53)*

Schedule 71 – Income Inclusion for Corporations that are Members of Single-Tier Partnerships (Jump Code: 71)

Schedule 72 – Income Inclusion for Corporations that are Members of Multi-Tier Partnerships (Jump Code: 72)

The question Did the partnership elect to change its fiscal period-end? and the fields relating to the tax year start and end dates for the old fiscal period have been removed from Part 1. When opening a client file prepared with a prior version of Corporate Taxprep, the values entered in these fields will not be retained.

Schedule 73 – Income Inclusion Summary for Corporations that are Members of Partnerships (Jump Code: 73)

The column in the table of Part 1 for line 120 has been removed. When opening a client file prepared with a prior version of Corporate Taxprep, the value on this line will not be retained.

T1044 – Non-Profit Organization (NPO) Information Return (Jump Code: 1044)*

T1134 – Information Return Relating to Controlled and Not-Controlled Foreign Affiliates (Jump Code: 1134)

The filing deadline for Form T1134 has been shortened. Form T1134 should be filed within the following deadlines depending on the taxation year end:

• 15 months for years ending before January 1, 2020;
• 12 months for years ending in 2020; and
• 10 months for years ending after December 31, 2020.

The diagnostics as well as the filing deadline shown in the Client Letter Worksheet (Jump Code: LW) used in the paragraph relating to Form T1134 in the Client Letter Filing Instructions (Jump Code: CLF) have been modified in accordance with these changes.

Inducement – Inducement Calculation Workchart (Jump Code: INDUCEMENT)

The line Tax credit to support print media companies has been added to the Tax credits whose amount should be added to income – Québec section.

In addition, the lines relating to the following credits have been removed from this section:

• Tax credit for the short-term rental of specialized facilities – Biotechnology development centre (BDC);
• Tax credit for job creation in Gaspésie and certain maritime regions of Québec – Marine biotechnology and mariculture;
• Tax credit relating to the costs of issuing shares – Stock Savings Plan II (SSP II).

In the Tax credits whose amount should reduce the capital cost of property – Québec section , the following fields have been removed:

• Tax credit for the modernization of a tourist accommodation establishment;
• Tax credit relating to building used in the course of manufacturing or processing activities – Manufacturing SMB.

When opening a client file prepared with a prior version of Corporate Taxprep, if an amount had been entered on one of the removed credit lines, it will not be retained.

Client Letter Worksheet (Jump Code: LW)

As a result of the removal of Form CO-1029.8.36.HF (Jump Code: 1029836HF), the CO-1029.8.36.HF check box has been removed from the CO-17-Paper format and CO-17 – Internet filing sections because this credit can only be claimed for a taxation year that ended before 2017. In addition, the paragraph relating to Form CO 1029.8.36.HF has been removed in the letter Filing Instructions (Jump Code: CLF).

The CO-1029.8.33.TF check box has been added to the “CO-17-Paper format:” and “CO-17 – Internet filing” sections. When this box is selected in one of these sections, the paragraph relating to Form CO-1029.8.33.TF (Jump Code: 1029833TF) is included in the letter Filing Instructions. Note that this box is automatically selected in the relevant section when Form CO-1029.8.33.TF is applicable.

RC4649 – Country-by-Country Report (Jump Code: RC4649)

In the instructions at the top of the form, the question Does this report cover a full reporting fiscal year? and the field “If no, indicate the number of months for which you are reporting” have been removed and the field “Enter the first day of the Reporting Fiscal Year of the MNE group for which you are reporting” has been added.

In Section 2 of Part II, the fields “Role of Constituent Entity” and “If this is a permanent establishment, tax jurisdiction of the legal entity of which the permanent establishment is a part” have been added. The latter is used to add the country code of the legal entity after the name of the constituent entity for the purposes of printing and electronic transmission of the form. If the country code is already entered in the name of the constituent entity, you will have to remove it.

In Section 1 of Part III, the field “Please specify the language used to complete this section” must now be completed for each copy of Part III.

When opening a client file prepared with a prior version of Corporate Taxprep, data entered in the fields that have been removed will not be retained. The value calculated in the field “Please specify the language used to complete this section” in all copies of Part III will be retained as a manual input.

AgriStability and AgriInvest Additional Information and Adjustment Request (Jump Code: HAGRI ADD)*

The column Line code has been added to the table of Part 2.

AgriStability and AgriInvest Programs (Jump Code: AGRI/HAGRI) – Ontario*

AgriStability and AgriInvest Programs (Jump Code: AGRI/HAGRI) – Harmonized Provinces* and British Columbia*

AgriStability and AgriInvest – Programs (Jump Code: AGRI/HAGRI) – Alberta*

Several changes have been made to the statement A. Here are the main ones:

• The “Name and Address” section has been split into two sections; “Participant Information” and “Authorized Representative – AgriInvest Only.”
• The following modifications have been made to the “Participant Information” section:

• The line Telephone Number (Evenings) has been removed.
• The lines Fax Number, E-mail Address and AFSC ID Number, and the check box AgriInvest Only have been added.
• The lines AGRIS/CAIS Participant Identification Number, Business Number, Trust Number, Province of main residence as of December 31 have been moved from the “Participant Profile” section to the “Participant Information” section.

• In the “Authorized Representative – AgriInvest Only” section, the line E-mail Address has been added.
• The “Participant Profile” section has been deleted, but the information from this section has been moved to the “Participant Information” and “Identification” sections. Note that the lines Language of preference, Number of years the entity has farmed, Was 2018 your last year of farming? and If the corporation has been dissolved, please provide the date of dissolution have been removed.
• The following modifications have been made to the “Identification” section:

• The check boxes a corporation, a co-operative and a member of a partnership have been moved from the “Participant Profile” section to the “Identification” section. However, the check box a communal organization has been removed. When opening a client file prepared with a prior version of Corporate Taxprep, if the check box a communal organization has been selected, the check box Other entity will be selected and “Communal organization” will be entered on the description field.
• The check boxes Single farm and Partnership have been removed.
• The question Was your farming operation involved in any of the following and the check boxes a member of a feeder association, crop share (landlord) and crop share (tenant) have been removed.

• In the “Other farming income” subsection, the line 9617, Custom feeding income has been removed.
• In the “Commodity purchases and repayment of program benefits” subsection, the line 575, Point of sale adjustments, has been added.
• In the « Allowable expenses » subsection, the lines 9830, Prepared Feed and 9831, Custom Feeding, have been removed. In addition, the line 9953, Private insurance premiums for allowable commodities, has been added.
• In the “Non-allowable expenses” subsection, the line 9935, Allowance on eligible capital property, has been removed.
• The following modifications have been made to the “Shareholder Information” section:

• The lines 865, Number of members in co-operative, and 854, Total number of outstanding common shares (voting and non-voting), have been removed. In addition, the columns Social Insurance Number, and Number of Common Shares Per Shareholder, have been removed.
• The column AgriStability and AgriInvest Participant Identification Number (PIN) or AFSC ID Number (if applicable) has been added.

• The following modifications have been made to the “Partnership Information” section:

• The columns Your Name, Social insurance Number, Business Number (if a corporation), and Business Number (if partner is a corporation) have been removed.
• The column PIN or AFSC ID Number has been added.

AgriStability and AgriInvest – Programs (Jump Code: AGRI/HAGRI) – Saskatchewan*

Ontario

Schedule 500 – Ontario Corporation Tax Calculation (Jump Code: 500)*

The lines in the schedule have been renumbered. In addition, the amount on line 2C is calculated from the amount on line 427 of the T2 return (Jump Code: J) only when the tax year starts before 2019. Lines 2D to 2H have been added to calculate the Ontario business limit reduction for a tax year that starts after 2018. Data on lines 2D, 2E and 2G are calculated from the equivalent lines in the T2 return. When opening a client file prepared with a prior version of Corporate Taxprep, if the amount on former line 3 was overridden and the tax year starts after 2018, it will be retained as an overridden amount on line 2H.

In accordance with provisions of Bill 138, which was tabled on November 6, 2019, by the Government of Ontario, the small business deduction rate increases from 8% to 8.3% on January 1, 2020. When the corporation’s taxation year straddles January 1, 2020, this rate is prorated based on the number of days in the taxation year that are after December 31, 2019. As a result, line 2N.3 has been added to Part 2.

Schedule 504 – Ontario Resource Tax Credit (Jump Code: 504)*

Former Parts 1, 2, 4 and 5 have been removed from the schedule because they are obsolete. In addition, all lines that were used to calculate the current-year resource tax credit for tax years that begin before April 24, 2015, as well as former line I have been removed from former Part 3, which now corresponds to Part 1. Therefore, this schedule should now be used only to claim an unused resource tax credit. When opening a client file prepared with a prior version of Corporate Taxprep, the data indicated on the removed lines will not be retained.

Québec 

CO-17 – Corporation Income Tax Return (Jump Code: QJ)*

Line 19a, Does the corporation have any income from commercial activities on the Internet?, has been added to Part 2, and the wording on line 28a has been updated to include any payment from which income tax was withheld.

Line 27 is now an input field. When opening a client file prepared with a prior version of Corporate Taxprep or when rolling forward a client file, the answer entered by the program or using an override will be retained.

In addition, on lines 42a and 43b, only the first 10 digits of the identification numbers should be entered. When opening a client file prepared with a prior version of Corporate Taxprep, if a number was entered on one of those lines, only the first 10 digits will be retained.

Note that the following special tax codes can now be selected on lines 425ai and 425bi:

• 95, SMBs to foster the retention of experienced workers;
• 96, To support print media companies.

The registration fees that are indicated on line 441b will be indexed on January 1, 2020. The amount for cooperatives will increase from $41 to $42, the amount for non-profit legal persons (incorporated association), a syndicate of co-ownership and fraternal benefit societies, from $35 to $36, and the amount for corporations, mutual insurance corporations and other entities, from $90 to $92.

QC L440P-Y – Additional Québec Credits (Jump Code: L440P)

The following credit codes have been removed from the form:

• 060, Tax credit for the short-term rental of specialized facilities - BDC (CO-1029.8.36.AL);
• 073, Tax credit for job creation in Gaspésie and certain maritime regions of Québec - marine biotechnology, mariculture and processing of marine products (CO-1029.8.36.RM, 2013, 2014 or 2015 calendar years);
• 093, Tax credit for the diversification of markets of Québec manufacturing companies (CO-1029.8.36.MA);
• 094, Tax credit for the modernization of a tourist accommodation establishment (CO-1029.8.36.HE);
• 098, Tax credit relating to building used in the course of manufacturing or processing activities - Manufacturing SMB (CO-1029.8.36.BT).

When opening a client file prepared with a prior version of Corporate Taxprep, if an amount had been entered on one of these code lines, it will not be retained.

In addition, on October 2, 2019, the Government of Québec announced in the Information Bulletin 2019-9, that it would implement a new refundable tax credit to support print media companies. As a result, the following credit code has been added to the form:

• 108, Tax credit to support print media companies.

CO-17.A.1 – Net Income for Income Tax Purposes (Jump Code: Q1)

Code 06, Additional capital cost allowance of 30% in respect of certain property has been added to the code list for lines 129ai to 129ki. Therefore, lines 129ei and 129e are now reserved for code 06, and the additional capital cost allowance of 30% is no longer taken into account in the calculation of the field Total deductions located in the Deduct subsection of the Additional list section. When opening a client file prepared with a prior version Corporate Taxprep, if a code is entered on line 129ei and an amount is entered on line 129e, these values will be transferred to the first empty line of lines 129fi to 129ki and 129f to 129k that will be empty. The corresponding values in the Prior year column will also be transferred in the same manner.

Q1 L70A – Taxable Tax Credits (Jump Code: L70A) and Q1 L140A – Non-Taxable Tax Credits (Jump Code: L140A)

The following credit codes have been removed from both forms

• 060, Tax credit for the short-term rental of specialized facilities - BDC;
• 073, Tax credit for job creation in Gaspésie and certain maritime regions of Québec - marine biotechnology and mariculture;
• 093, Tax credit for the diversification of markets of Québec manufacturing companies;
• 094, Tax credit for the modernization of a tourist accommodation establishment;
• 096, Tax credit relating to the costs of issuing shares – Stock Savings Plan II (SSP II);
• 098, Tax credit relating to building used in the course of manufacturing or processing activities - Manufacturing SMB.

When opening a client file prepared with a prior version of Corporate Taxprep, if an amount had been entered on one of these code lines, it will not be retained.

In addition, on October 2, 2019, the Government of Québec announced in the Information Bulletin 2019-9, that it would implement a new refundable tax credit to support print media companies. As a result, the following credit code has been added to the form:

• 108, Tax credit to support print media companies.

CO-17.B.1 – Amount to be Included in the Income of a Corporation that is a Member of a Single-Tier Partnership (Jump Code: Q17B1)

CO-17.B.2 – Amount to be Included in the Income of a Corporation that is a Member of a Multi-Tier Partnership (Jump Code: Q17B2)

Following the update of Schedule 71 (Jump Code: 71) and Schedule 72 (Jump Code: 72), lines 08, 09 and 10 became input fields. When opening a client file prepared with a prior version of Corporate Taxprep, the value calculated on each of these lines will be retained.

CO-130.A – Capital Cost Allowance (Jump Code: Q8)*

To take the acquisitions of accelerated investment incentive property (AIIP) and their UCC adjustment into account, the following column have been added:

• Column C.1, Capital cost of AIIP acquired in the taxation year (amount included in column C);
• Column F.1, Proceeds of dispositions available to reduce the capital cost of AIIP acquired in the taxation year;
• Column F.2, Net capital cost of AIIP acquired during the taxation year; and
• Column F.3, UCC adjustment for AIIP acquired during the taxation year.

The following columns have been renamed to better represent the new calculation for CCA:

• Column F, UCC after acquisitions and dispositions;
• Column G, UCC adjustment for non-AIIP acquired during the taxation year;
• Column H, Base amount available for the CCA calculation.

CO-737.SI – Deduction for Innovative Manufacturing Corporations (Jump Code: 737SI)*

For each qualified patented feature incorporated in the qualified property and for which the corporation is claiming the deduction, complete a separate copy of Form CO-737.SI PART 5. To complete Part 5 for each qualified patented feature, access Form CO-737.SI PART 5 from Part 5. When opening a client file prepared with a prior version of Corporate Taxprep, for each qualified patented feature entered in Part 5, a separate copy of Form CO-737.SI PART 5 will be created.

Column B, Patent number, has been added to the table in Section 5.1. Section 5.2 has been added to provide a short description of the valuation method that was used to determine the increase in value that the qualified patented feature adds to the qualified property. Furthermore, a table has been added to the new Section 5.3 to enter the qualified R&D expenditures that were paid by the corporation and the associated corporations for the 5-year period preceding the taxation year covered and for which these corporations qualified for an R&D tax credit. When rolling forward a client file, data from columns F to C will be retained in columns E to B, and column F should be completed, if applicable.

CO-771 − Calculation of the Income Tax of a Corporation (Jump Code: 771)*

Line 06a has been added to Part 1 to indicate whether the corporation or a corporation with which it is associated in the taxation year has an adjusted aggregate investment income calculated on Form CO-771.1.3.AJ (Jump Code: 77113AJ).

In Section 8.1, custom lines JA and JB, which were used to calculate the business limit reduction, have been removed following the addition of Form CO-771.1.3.AJ. When the amount of paid-up capital on line 56 of Form CO-771 is less than $15 million and Form CO-771.1.3.AJ is applicable, the amount on line 94a will be calculated using data entered on this form. Otherwise, the calculation of line 94a remains unchanged.

When opening a client file prepared with a prior version of Corporate Taxprep, the overridden amounts on lines JA, Adjusted aggregate investment income, JB and Business limit reduction (amount JA or JB, whichever is the greater)” will be retained, respectively, on lines 34, 28, 33 and 38 of Form CO-771.1.3.AJ.

CO-771.2.1.2 – Income of a Corporation That Is a Member or Designated Member of a Partnership From an Eligible Business Carried On in Canada by the Corporation (Jump Code: 771212)*

CO-771.R.3 – Breakdown of Business Carried On in Québec and Elsewhere (Jump Code: 771R3)*

The section “Indicate to which line(s) you will carry the percentage shown in box H” has been removed.

In addition, four selectable lines have been added to the form:

• 06a - The corporation must calculate its proportion of business carried on in Québec using the salaries and wages paid by the corporation and the corporation’s gross revenue as a basis of calculation.
• 06b - The corporation must calculate its proportion of business carried on in Québec using a basis of calculation other than the salaries and wages paid by the corporation and the corporation’s gross revenue.
• 07a - The corporation has gross revenue in the taxation year, but has not paid salaries and wages to its employees.
• 07b - The corporation has no gross revenue in the taxation year, but has paid salaries and wages to its employees.

CO-1029.8.33.13 – Tax Credit for the Reporting of Tips (Jump Code: 102983313)*

This form has been updated in order to integrate the various applicable rates for 2020. In compliance with Revenu Québec requirements, the calculation of the health and services fund rates on lines 22, 60b, 60e and 60h is now performed with two decimals.

COZ-1179 – Logging Operations Return (Jump Code: 1179)*

MR-69 – Authorization to Communicate Information or Power of Attorney (Jump Code: MR69)*

As per Revenu Québec requirements, the 2D bar code is no longer generated when some minimal validations are not met. Diagnostics have been updated to advise the preparer that the bar code will not be generated when printing the form as long as the adjustments are not made. Please note that the absence of a 2D bar code may cause processing delays from Revenu Québec.

RD-1029.8.9.03 – Tax Credit for Fees and Dues Paid to a Research Consortium (Jump Code: 10298903)*

As a result of the update of the form, the following modifications were made:

• Former Section 2.1 becomes Part 2.
• Part 3 has been added to keep track of the balance of cumulative fees or dues paid to the research consortium. Note that the expenditures incurred by the consortium, whether or not they are related to R&D activities covered on lines 116b, 116c, 116g and 116h, must reduce the fees or dues paid to the consortium according to the first in, first out method.
• In the past, if the eligible dues or fees originated from more than one taxation year and the percentage on line 135 was not the same for all those years, you had to perform the calculations covered on lines 139 to 141 for each year and override the total of these amounts on line 141 in former Section 2.5. From here on, use the table that was added to Section 4.1 to keep track of eligible fees or dues relating to prior taxation years (line 116c) according to the taxpayer’s percentage interest for those prior taxation years.
• The information indicated in Section 4.2 includes information entered in former Section 2.5 relating to the taxpayer who became a member of the research consortium in the fiscal year of the latter and whose fiscal year in question ended in the taxation year covered.
• Former Section 2.4 becomes Section 4.2.1.
• Section 4.2.2 includes the same calculation of the eligible fees or dues relating to the taxation year covered. Therefore, lines 136 to 138 were kept as in the previous version. The description of line 136 was modified, because it now refers to line 116h in Part 3.
• Section 4.3 performs the addition of eligible fees or dues from prior years (line 138b) and the year covered (line 138a). In addition, lines 142 to 151 were kept as in the previous version.
• Former Parts 3 to 7 become Parts 5 to 9.
• Former Sections 2.2, 2.3 and 2.6 as well as lines 139 to 141 in former Section 2.5 were removed from the form.

When opening a client file prepared with a prior version of Corporate Taxprep, if amounts were entered on lines 139 and 140, they will be retained in the first occurrence of columns B and C, respectively, of line 120 in Section 4.1. In addition, if an amount had been overridden on line 141, it will be retained as an overridden amount in the first occurrence of column D on line 120 in Section 4.1. If this is your situation, it means that the percentage on line 135 was not the same for all prior taxation years. Therefore, enter the information concerning the taxation years in the table of Section 4.1 for each prior taxation year. If an amount was entered on line 153d, it will be kept as an overridden amount on line 116k. A diagnostic will prompt you to complete Part 3 and to remove the override.

When rolling forward a client file, information on line 112f in Part 2 as well as on line 135 in Section 4.2.1 will be updated to columns A and C of a new occurrence of line 120 in Section 4.1. In addition, the information relating to the other prior taxation years in Section 4.1 will also be retained if the amount on line 116e was greater than 0.

CO-1029.8.36.FO – Employee Training Tax Credit for Small and Medium-sized Businesses (Jump Code: 1029836FO)

Based on new Revenu Québec requirements, you can now enter cents on line 23 of the form.

When opening a client file prepared with a prior version of Corporate Taxprep, if an amount had been entered or overridden on this line, it will be retained.

TP-1029.9 – Tax Credit for Taxi Drivers or Taxi Owners (Jump Code: 10299)*

The permit number to be entered on line 20 of Section 2, Column A of Section 3.1, and Section 3.2 is now 12 characters long (without hyphen or space).

When opening a client file prepared with a prior version of Corporate Taxprep, if a permit number longer than 12 characters (excluding hyphens and spaces) was entered in one of the fields above-mentioned, the number will not be retained.

In addition, for section 3.2 to be completed in accordance with the requirements of the Revenu Québec form, you must now complete a separate copy of Form TP-1029.9 PART 3.2 for each permit issued to more than one taxpayer if these taxpayers have chosen to designate the corporation as the sole holder to claim the tax credit. You can access Form TP-1029.9. PART 3.2 from Part 3, Subsection 3.2 “Designation of the holder of a taxi owner's permit” of Form TP-1029.9.

When opening a client file prepared with a prior version of Corporate Taxprep, a separate copy of the form will be created for each entity that completes section 3.2. The data in section 3.2 regarding the designation of the holder of a taxi owner's permit will be transferred on a first copy of Form TP-1029.9 PART 3.2 related to the applicable entity. Please check if any adjustments are necessary.

The base amount on line 53 will indicate the amount for the 2019 taxation year, i.e. $584, when the taxation year ends after December 30, 2019. The base amount for the 2020 taxation year, i.e. $594 applies to a taxation year that ends after December 30, 2020.

British Columbia

Schedule 421 – British Columbia Mining Exploration Tax Credit (Jump Code: 421)*

Schedule 427 – British Columbia Corporation Tax Calculation (Jump Code: 427)*

Former lines 4, 5 and F, which were used to calculate the amount eligible for the credit unions deduction taking into account the 80% reduction rate of the deduction that was applicable in 2016, have been removed from the schedule because they are obsolete. When opening a client file prepared with a prior version of Corporate Taxprep, the amounts that were indicated in the fields of these lines will not be retained.

Schedule 428 – British Columbia Training Tax Credit (Jump Code: 428)*

Alberta

AT1 – Alberta Corporate Income Tax Return (Jump code: AJ)*

The basic tax rate will be decreased from 11% to 10% on January 1, 2020. Therefore, the rate used for calculating the amount on line 068 has been modified. When the corporation’s taxation year straddles January 1, 2020, this rate is prorated based on the number of days in the taxation year that are after December 31, 2019. In addition, the small business deduction rate for the province has been modified. For more information on this topic, consult the note relating to Form AT1 Schedule 1 below.

AT1 Schedule 1 – Alberta Small Business Deduction (Jump code: A1)*

The small business deduction rate for the province will be decreased from 9% to 8% on January 1, 2020. The table Calculation of the Alberta Small Business Deduction has been modified to reflect this change. Lines of the table that were used for the periods after March 31, 2007, and before April 1, 2008, as well as after March 31, 2008, and before April 1, 2009, have been removed. In addition, in the “AREA B – Determination of the Value for Line 015” section, the presentation of the calculation of the passive income business limit reduction has been reviewed. Therefore, the Passive Income Limit Reduction subsection has been added.

AT1 Schedule 9 – Alberta Scientific Research & Experimental Development (SR & ED) Tax Credit (Jump Code: A9) and AT1 Schedule 9 – Listing of SR & ED Projects Claimed in Alberta (Jump Code: A9 LISTING)

In its budget tabled on October 24, 2019, the Alberta Government announced that the credit for SR&ED will be eliminated starting in 2020 and that expenses incurred after December 31, 2019, will no longer be eligible for this credit. The amounts entered in columns 105, 109 and 111 of Form A9 LISTING must relate to expenses incurred before January 1, 2020. If no eligible expense was incurred before January 1, 2020, clear, where applicable, the check boxes Select this check box if a part or all of the SR&ED expenditures of the third party were incurred in Alberta before January 1, 2020 of Form T1263 (Jump Code: 661(T1263)), and Select this check box if a part or all of the SR&ED expenditures for this project were incurred in Alberta before January 1, 2020 of Form T661 Part 2 (Jump Code: 661 Part 2). Diagnostics have been added to facilitate data entry about this measure.

AT1 Schedule 12 – Alberta Income/Loss Reconciliation (Jump Code: A12)

As a result of the addition of the employer deduction for non-qualified securities under an employee stock options agreement in the Taxable income section of Schedule 200 (Jump Code: J), the line Employer deduction for non-qualified securities under an employee stock options agreement, has been added to the Federal and Alberta columns of the AREA B – TAXABLE INCOME FOR ALBERTA section.

AT1 Schedule 18 – Alberta Dispositions of Capital Property (Jump Code: A18)*

The numbering, description and layout of the lines have been modified.

AT1 Schedule 21 – Alberta Calculation of Current Year Loss and Continuity of Losses (Jump Code: A21)

As a result of the addition of the employer deduction for non-qualified securities under an employee stock options agreement in the Taxable income section of Schedule 200 (Jump Code: J), line A, Amount of an employer for non-qualified securities under an employee stock options agreement deductible, has been added to the CALCULATION OF CURRENT YEAR NON-CAPITAL LOSS section.

AT100 – Preparing and Filing the Alberta Corporate Income Tax Return (Jump Code: A100)*

Former check box 4, It is not claiming the Alberta Royalty Tax Credit nor has it received Royalty Tax Credit instalments for the taxation year, has been removed, affecting the order of the exemption criteria of the following check boxes.

The former exemption criteria for check box 9, It is not claiming the Alberta Scientific Research & Experimental Development (SR&ED) Tax Credit, a recapture of SR&ED, the Alberta Interactive Digital Media Tax Credit, an Alberta Capital Gains Refund nor any other credits (line 087 of the AT1 return), now applies to check box 7 with respect to the Alberta Scientific Research and Experimental Development Tax Credit and the recapture of SR&ED.

The former exemption criteria for check box 5, It has no amounts to report on Schedule 3, Alberta Other Tax Deductions and Credits, or on Schedule 5, Royalty Tax Deduction, now applies to check box 9 with respect to the Alberta Investor Tax Credit, the Capital Investment Tax Credit, Interactive Digital Media Tax Credit and the Alberta Capital Gains Refund.

Check box 8 is now used for the Alberta Qualifying Environmental Trust Tax Credit and any other credits (line 087 of the AT1 return (Jump Code: AJ)).

Because of the change in the order of the exemption criteria, when opening a client file prepared with a prior version of Corporate Taxprep, if former check boxes 5 or 9 were overridden, verify if adjustments are required.

Saskatchewan

Schedule 404 – Saskatchewan Manufacturing and Processing Profits Tax Reduction (Jump Code: 404)

A validation has been added to line B in Part 1 so that no negative amount can be entered on that line. When opening a client file prepared with a prior version of Corporate Taxprep, if a negative amount was entered on this line, it will not be retained.

Schedule 411 – Saskatchewan Corporation Tax Calculation (Jump Code: 411)*

Manitoba

Schedule 381 – Manitoba Manufacturing Investment Tax Credit (Jump Code: 381)*

Custom lines 1a and 1b were replaced by lines 109 and 112. Custom lines used for the calculation of line 121 were replaced by lines 121 and 123. In addition, custom lines used for the calculation of line 148 were replaced by lines 148 and 149.

Schedule 383 – Manitoba Corporation Tax Calculation (Jump Code: 383)*

The field on line 1A, Taxable income for Manitoba, is now used for the period prior to January 1, 2019, and for the period after December 31, 2018. As a result, the field on former line A2, Taxable income for Manitoba, has been removed from Part 1 for the period after December 31, 2018.

In addition, in Part 1 for the period prior to January 1, 2019, the section relating to credit unions has been retained because it is required to calculate the additional deduction for credit unions when the tax year ends before 2019. Therefore, if the tax year ends before 2019, the amount on line 1F is calculated using the amount on line 4. Otherwise, it is calculated using the amount on line 1E.

Also, in Part 1 for the period after December 31, 2018, the section relating to the deduction for credit unions has been removed as it is now included in Part 4 of Schedule 17 (Jump Code: 17).

Finally, line 3D has been added to Part 3 to calculate Manitoba tax before the additional deduction for credit unions and the tax credits. Line 3E has been added to calculate the additional deduction for credit unions for a taxation year ending after 2018. This calculation comes from line 652 in Part 4 of Schedule 17.

Note that line numbering in the form has been modified.

Schedule 384 – Manitoba Paid Work Experience Tax Credit (Jump Code: 384)*

Schedule 387 – Manitoba Small Business Venture Capital Tax Credit (Jump Code: 387)

The field Portion of the credit on line 102 from eligible investments issued to the corporation in the taxation year after June 11, 2014 has been removed from Part 1 because it is obsolete. Therefore, all calculations related to investments made in the year by the corporation after June 11, 2014, are now performed directly using the amount on line 102. When opening a client file prepared with a prior version of Corporate Taxprep, the amount that was entered in the removed field will not be retained.

Schedule 389 – Manitoba Book Publishing Tax Credit (Jump Code: 389)*

The duration of the eligibility criteria for the credit has been extended for five years. The modifications are the following:

• the publication date for the book must be prior to 2025;
• the book publishing labour costs must be paid prior to 2025;
• the printing costs must be paid prior to 2026.

The diagnostics relating to these topics have been modified accordingly.

Nunavut

Schedule 481 – Nunavut Corporation Tax Calculation (Jump Code: 481)*

Northwest Territories

Schedule 461 – Northwest Territories Corporation Tax Calculation (Jump Code: 461)*

Yukon

Schedule 443 – Yukon Corporation Tax Calculation (Jump Code: 443)*

New Brunswick

Schedule 366 – New Brunswick Corporation Tax Calculation (Jump Code: 366)*

The lines in the schedule have been renumbered. In addition, the amount on line 1D is calculated from the amount on line 427 of the T2 return (Jump Code: J) only when the tax year starts before 2019. Lines 1E to 1I have been added to calculate the New Brunswick business limit reduction for a tax year that starts after 2018. Data on lines 1E, 1F and 1H are calculated from the equivalent lines in the T2 return. When opening a client file prepared with a prior version of Corporate Taxprep, if the amount on former line D was overridden and the tax year starts after 2018, it will be retained as an overridden amount on line 1I.

Nova Scotia

Schedule 341 – Nova Scotia Corporate Tax Reduction for New Small Businesses (Jump Code: 341)*

Schedule 346 – Nova Scotia Corporation Tax Calculation (Jump Code: 346)*

The lines relating to the period prior to January 1, 2017, have been removed from the form as a taxation year starting before January 1, 2017, cannot be entered in this version of the program. In addition, former Part 2, which related to the calculation of income from active business when there is partnership income, has also been removed because the Nova Scotia business limit is the same as the federal government business limit for taxation years starting after 2016.

Prince Edward Island

Schedule 322 – Prince Edward Island Corporation Tax Calculation (Jump Code: 322)*

Lines E1 and E2 have been removed from Part 1. In addition, the lower tax rate will be decreased from 3.5% to 3% on January 1, 2020. As a result, line 2C has been added to Part 2.

Top

Guides

Updated Guides

AgriStability and AgriInvest

• 2019 AgriStability and AgriInvest Programs, Corporation/Co-operative and Special Individual Harmonized Guide
• Alberta AgriStability Guide for 2019 Supplementary Forms
• Saskatchewan AgriStability Commodity Code Guide (2018)
• Saskatchewan AgriStability Corporations, Co-ops, Other Entities Instruction Guide
• Saskatchewan AgriStability Program Handbook

Québec 

• Guide CO-17.G, Guide de la déclaration de revenus des sociétés (available in French only)

Top

Technical Information

Technical Changes

We are proud to present the many technical changes to the enhanced version of Corporate Taxprep. We are convinced that you will be pleased with these changes.

Enhancements to the user interface

The following enhancements have been made to the interface to refine the display of the many Corporate Taxprep views:

• A single toolbar: The Standard and Advanced toolbars have been merged into a single toolbar that is always displayed which content adjusts according to the view selected. This new toolbar also provides new buttons with a more intuitive design.
• Access to the views: The shortcut bar that was available on the left side of the main screen of Corporate Taxprep was replaced by the button. When you click this button, a menu displays to allows you to select the desired view.
• Zoom: The tool allowing you to resize the form is now available in the right corner of the status bar.
  
  To know how to use this tool, consult the page Customize Form Display.
  The selected zoom factor will apply only to the forms. The Xpress tool and the diagnostics pane possess options allowing you to apply a zoom factor different from the one set for the display of forms.
• AutoText: To facilitate the entry of data, which is sometimes repetitive, a list of AutoText suggestions in alphabetical order now displays from an alphanumeric field for which such list exists. Start entering an alphanumerical value and, if a list displays, click the value that you want to insert in the cell.
• TaxprepConnect status bar: The TaxprepConnect a status bar has been modified. The Download button allows you to download a corporation's data, while the icon allows you to display Form CONNECT, TaxprepConnect Download (Jump Code: CONNECT), to review the downloaded data. In addition, you can place the cursor of your mouse on the icon to display the date of the last download performed for the active client file. For more information on TaxprepConnect, consult the page How to Download Tax Data with TaxprepConnect .

Standardized presentation of information in the views

In addition to the Client Manager, Form Manager, EFILE Log view and EFILE Archives view, the following views are also presented in tables:

• Print Formats view 
• Preparer Profiles view 
• Filters and Diagnostics view 
• Letters and Labels view 
• Rate Tables view 
• Advanced Network view (available with the Advance Network version)

Therefore, the functionalities available in these views to display, order and filter the information are identical. The following enhancements have been made to certain of the functionalities:

• the search is performed from the search box or by using the Ctrl+F shortcut. For more information on this topic, consult the page Search Through Views.
  
• the grouping area located at the top of the view is no longer displayed at all times. To group the content of a view according to a column, click the Group button, and drag the column header to the grouping area displayed. To ungroup , click the Ungroup button.
• the filters available on the column headers now provide more criteria to allow you to quickly find the information you are searching for. As a result, in the Values tab, you can enter the text you are searching for in the list to find the one that you want to use as a search criterion. A second tab is also available to allow you to use advanced filter functions. For more information, consult the page Filter Based on the Content of One Column.

As mentioned above, the Print Formats, Letters and Labels and Filters and Diagnostics views are now presented in tables. In addition to taking advantage of the functionalities listed above, this new way of presenting information provides you with a way to order templates per template types, i.e. predefined or customized. As a result, the customized templates are displayed first in the view as they are the most frequently used templates.

Information on client files in the Open dialog box

The information on the client file displayed in the Open dialog box have been modified. Only the name of the corporation and the business number are now displayed in the dialog box, and this information is located above the name of the file.

To quickly review the information on the client files such as the return status the taxation year end and the various EFILE statuses, use the Client Manager. The Client Data filter allows you to obtain this information at a glance.

Letter Editor: more editing tools available

The following have been enhanced in the Letter Editor used to define the content of letter templates. It also allows you to format and layout the letter.

• Tables: You can now add one or more tables in a letter template to display data on lines and in columns. For more information on tables, consult the page Add or delete a table.
• Review comments: You can now add comments to a letter template to enter any information, suggestion or question to be communicated to your colleagues responsible for updating or reviewing the letter template. For more information on review comments, consult the page Add, edit or delete comments.
• Formatting tools: For more information on the many tools provided in the Letter Editor consult the page About the Letter Editor.

Xpress and Diagnostics pane: easier-to-use tools

You can now float the Xpress tool panel or the diagnostics pane to move it. It can be moved to another screen to facilitate data entry in the main screen. To do so, in the toolbar, click the Xpress button or the Diagnostics button, then click Float and move the panel to the other screen. Consult the video for a demonstration of the floating pane.

Options to resize the text, the zoom in and the zoom out  have been added to the Xpress tool and the diagnostics pane. For more information on these options, consult the pages Customize the Xpress List Display and Customize Diagnostics Display.

In addition, as it is now possible to float the Xpress tool panel, the Browse toolbar has been removed from the Display/Toolbar menu.

Changes relating to diagnostics

As the information in the diagnostics pane is presented in a table, a grouping area located in the top portion of the pane, where you can group the content of the pane according to a column, is also available. To group content in the diagnostics pane according to a column (for example, the Type), click the Group  button, then drag the column header to the displayed grouping area.

Diagnostics are ordered by group and each group is presented in a separate table. The name of the group as well as the number of diagnostics are indicated on tabs:

• The Take Action tab displays the diagnostics issued by Corporate Taxprep on which no action has yet been taken.
• The Reviewed tab displays the diagnostics that were reviewed during a first or second revision.
• The Ignored tab displays the diagnostics that were ignored during a first or second revision.

Precisions relating to diagnostics

• An annotated diagnostic with the or indicators which is resolved remains in the Reviewed tab; however, the colour of the indicators displayed in the Annotation column is modified ( or ).
• The diagnostic indicator for a tax cell is no longer displayed when the diagnostics issued for that cell are annotated and no other diagnostic applies to this cell. Therefore, the diagnostic(s) display before the return is printed.

Help tools: easier to access

online help centre

Corporate Taxprep provides you with an online Help Centre containing tax and technical information pages that will answer your various questions and will help you efficiently use Corporate Taxprep. When you consult the Help, the relevant help topic will display in your computer's default Web browser.

You can use the search box located in the top right corner of the page at any time to obtain information on a specific topic.

In addition to providing regularly updated tax and technical information, the Help Centre contains support information (such as troubleshooting memos and frequently asked questions) and provides useful links to the CRA and Revenu Québec Web sites and certain help centres of software programs integrated with Corporate Taxprep.

Professional centre

The Professional Centre now displays in your computer's default Web browser. This allows you to consult the Professional Centre in another screen while continuing to work in Corporate Taxprep. Make sure that you enter your CCH services username and password in the options and settings of Corporate Taxprep to take advantage of the services available in the Professional Centre.

Folder location

The location of certain folders related to Corporate Taxprep that were in the CCH folder is now in the Wolters Kluwer folder. As a result, during installation, Corporate Taxprep will prompt you for a different location for the following:

• the Corporate Taxprep installation folder,
• the database and the transmission files,
• the templates, and

Notes: The folder initially suggested when opening a client file will be Wolters Kluwer. For example,: C:\Users\WindowsUserName\Documents\Wolters Kluwer\T2 Taxprep\Client. You can define a default folder in the Options - File Locations panel of the options and settings. The default folder suggested during roll forward of client files is the client file folder defined in Corporate Taxprep 2018. For example: C:\Users\WindowsUserName\Documents\CCH\T2 Taxprep 2018\. The default folder suggested during templates conversion is the templates folder defined in Corporate Taxprep 2018. For example: C:\Users\WindowsUserName\Documents\CCH\T2 Taxprep 2018\.

Enhancements to the Advanced Network view (available in the Advanced Network version)

Like the Client Manager, the Form Manager and the various templates views, the Advanced Network view is now presented in a table. You can take advantage of the different functionalities available in those views to customize the display according to your requirements and perform searches.

The Advanced Network view is split into two portions that allow you to view, add, delete and define properties for the users and groups:

• The upper portion relates to user groups.
• The lower portion relates to users: by selecting a group in the upper portion of the view, the users associated with this group are displayed in this location.

For more information related to the Advanced Network version, consult the About the Advanced Network View topic.

Advanced settings

Modification to the Taxprep Development Toolkit

The guide Taxprep Development Toolkit Instructions and Excel file Taxprep T2 Development Toolkit Demo are only available in the online Help Centre.

Certain changes were made to the Taxprep development toolkit. It is important to read the Taxprep Development Toolkit Instructions topic and modify the properties and features in your applications in order for them to operate correctly. Here is an overview of the main changes.

Differences between Corporate Taxprep Classic 2019 v.1.0 and Corporate Taxprep 2019 v.2.0 (enhanced version):

• ITaxprepLicenceManager from the classic version becomes ITaxprepLicenseManager in the enhanced version;
• ITaxprepCell.Value from the classic version becomes ITaxprepCell.GetValue() and ITaxprepCell.SetValue() in the enhanced version;
• modifications were made to all <Enum> in the enhanced version;
• the ProgID now follow the following naming structure: Product.Type.Version (for example, TaxprepCom2019v2.Taxprep2019T2Return from the classic version becomes TaxprepT2.Return.2019v2 in the enhanced version).

Differences between the Corporate Taxprep 2019 v.1.0 and Corporate Taxprep 2019 v.2.0 enhanced versions:

• IT22019v2TaxprepCell from the enhanced version 1.0 becomes ITaxprepCell in the enhanced version 2.0;
• IT22019v2TaxprepGroup from the enhanced version 1.0 becomes ITaxprepGroup in the enhanced version 2.0;
• IT22019v2TaxprepLicenceManager from the enhanced version 1.0 becomes ITaxprepLicenseManager in the enhanced version 2.0;
• IT22019v2TaxprepNetworkManager from the enhanced version 1.0 becomes ITaxprepNetworkManager in the enhanced version 2.0;
• IT22019v2TaxprepReturn from the enhanced version 1.0 becomes ITaxprepReturn in the enhanced version 2.0;
• the ProgID now follow the following naming structure: Product.Type.Version (for example, wkxxxx2019t2.wk2019t2return from the enhanced version 1.0 becomes TaxprepT2.Return.2019v2 in the enhanced version 2.0).

A section was also added to the help topic, in which is provided an explanation on how to use the Taxprep development toolkit from a .NET application.

Silent Installation

You can now install Corporate Taxprep silently using the Windows command prompt. For more information on the silent installation, consult the page Silent Installation.

Excel Add-in for Taxprep

A new version of the Excel Add-in for Taxprep is available. This new version is required to use the Excel Add-in for Taxprep with the enhanced version of Corporate Taxprep.

The installation of this new version requires that you uninstall the old version of the Excel Add-in for Taxprep. Uninstall is supported by the new Excel Add-in for Taxprep installation wizard.

For more information with regards to the Excel Add-in for Taxprep, consult the Excel Add-in for Taxprep topic.

Software integrations

other integrations

• Integration with the CCH Accountants' Suite: Integrations with the CCH Document On-Premise and CCH Portal programs are available with Corporate Taxprep.
• Integration with Taxprep Forms: The command Create a Taxprep Forms file, which allows you to create a Taxprep Forms client file including data from the Identification form, is currently not available in Corporate Taxprep. The integration will be available as soon as the enhanced version of Taxprep Forms is released.

Modifications in the options and settings

The Apply button has been removed from the Options and settings dialog box. You must now make your modifications in the different panels and click the OK button.

The option to select the paper orientation when printing labels has been removed from the Labels/Format panel.

Modifications to the Attached Files tab in the Properties dialog box

Many modifications were made to the interface of the Attached Files tab of the Properties dialog box. For more information, consult the Attach a file help topic.

What’s new since the 2018 enhanced version

Enhancing the performance of Corporate Taxprep

We are aware that the performance of your work tools is essential to a successful tax season. As a result, much effort was dedicated to enhancing the performance of Corporate Taxprep with respect to the roll forward of client files, data recalculation and return printing.

Changes to the location of mandatory information on Québec forms

In accordance with Revenu Québec requirements, the corporation’s name, the Québec enterprise number (NEQ) as well as the identification number of the corporation will now print at the bottom of each Revenu Québec form.

Addition of the Forms menu in the edit templates view

The Forms menu and shortcut keys for commands of this menu are once again available in the different views to edit templates.

Retrieving the previous version configuration

The following previous version configuration items of Corporate Taxprep are once again available:

• AutoText;
• Highlighted search results.

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Converting Templates

Converting Template Files

All templates (i.e. client letter templates, client filters, preparer profiles and print formats) created in a prior version must be converted to be used with Corporate Taxprep 2019 v.2.0.

Templates can be converted using the Convert function which is available in each template view.

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Corrected Calculations

The following problems have been corrected in version 2019 2.0:

Federal

• Schedule 7, Aggregate Investment Income and Income Eligible for the Small Business Deduction – Incorrect amount on line 730 when a dividend deductible under paragraph 113(1)(c) ITA is entered in Schedule 3
• Capital Cost Allowance (CCA) Workchart – Incorrect amount rolled forward on line N for a CCA class 14.1 causes an overestimate of the 2% additional deduction
• Additions and Dispositions Workchart – Incorrect calculation of the capital cost and the proceeds of disposition of a zero-emission passenger vehicle in CCA class 54
• Schedule 12 – Incorrect calculation of the deduction in respect of the accelerated Canadian development expenses and accelerated Canadian oil and gas property expenses when the taxation year is less than 51 weeks
• Additions and Dispositions Workchart – Incorrect calculation of the proceeds of disposition of property in CCA class 54 for a zero-emission passenger vehicle related to dispositions after July 29, 2019

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Essential Program Information

Taxation Years Covered

Corporate Taxprep 2019 v.2.0 is designed to process corporate tax returns with taxation years beginning on or after January 1, 2017, and ending on or before May 31, 2020.

You must use the appropriate prior version of Corporate Taxprep to prepare returns relating to a taxation year that begins before that period. To obtain a list of prior Corporate Taxprep versions and corresponding taxation years, consult the “Version Coverage” topic.

Default Taxation Year

The default taxation year for a new client file is January 1, 2019, to December 31, 2019.

Specialized Information, Advanced Network and Corporation Internet Filing Modules

The modules Specialized Information (SI), Advanced Network and Corporation Internet Filing are options sold separately from the program.

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Where to Find Help

If you have any questions regarding the installation or use of the program, there are several options for getting help. Access the Professional Centre or the Knowledge Base for tips and useful information on how to use the program. If you are in the program and need help, press F1 to get help on a specific topic.

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Taxprep e-Bulletin

For your convenience, you are automatically subscribed to the Taxprep e-Bulletin, a free e-mail service that ensures you receive up-to-date information about the latest version of Corporate Taxprep. If you want to review your subscription to Taxprep e-Bulletin, visit https://wolterskluwer.ca/products/taxprep/ and, in the Existing Taxprep Customers section, click Support. In the Support menu, select Taxprep e-Bulletin. Click Newsletter Manager in the Taxprep e-Bulletin section. You can also send an e-mail to cservice@wolterskluwer.com to indicate the products for which you wish to receive general information or information on our software (Personal Taxprep, Corporate Taxprep, Taxprep for Trusts, Taxprep Forms or CCH Accountants’ Suite).

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How to Reach Us

E-mail

Customer Service:
cservice@wolterskluwer.com

Tax and Technical support:
csupport@wolterskluwer.com

 

Telephone

1-800-268-4522

 

Web Site

https://wolterskluwer.ca/products/taxprep/

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