Release Notes

Try our Knowledge Base!

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.

Essential Program Information

Taxation Years Covered

Corporate Taxprep 2021 v.1.1 is designed to process corporate tax returns with taxation years beginning on or after January 1, 2019, and ending on or before October 31, 2021.

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 July 1, 2020, to June 30, 2021.

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.

Top

Training

Webinars are available too allow you to familiarize yourself with the different functionalities of Taxprep. 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.

Top

Overview – Version 2021 1.1

Corporate Taxprep 2021 v.1.1 includes several technical and tax changes. Here is a summary of the main topics addressed in this document.

Modifications to the capital cost allowance calculations

The changes relating to the immediate expensing, which were announced in the federal budget tabled on April 19, 2021, have been integrated in this version. The immediate expensing is available for eligible property acquired by Canadian controlled private corporations after April 18, 2021, and that becomes available for use before January 1, 2024. The amount of immediate expensing is limited to $1.5 million per taxation year. For more information, consult the note on this topic.

Top

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 8, Capital Cost Allowance (CCA) (Jump Code: 8)

In its 2021-2022 Budget tabled on April 19, 2021, the federal government introduced a temporary immediate expensing measure for eligible depreciable property (other than property in CCA classes 1 to 6, 14.1, 17, 47, 49 and 51) acquired after April 18, 2021, and that becomes available for use before January 1, 2024, by a Canadian-controlled private corporation (CCPC) up to a limit of $1.5 million per taxation year. The limit must be allocated among CCPCs that are members of an associated group of corporations. The limit allocated to a CCPC is prorated for taxation years that are shorter than 365 days. Note that the unused limit cannot be carried forward. In addition, the half-year rule is suspended for property eligible for this measure.

To take this measure into account, the following elements have been added, on screen only:

• The Immediate expensing amount deducted column at the end of the Capital cost allowance table.
• The custom question Is the corporation a CCPC eligible for the immediate expensing measure for the current taxation year? The answer to this question should be Yes for the program to perform the calculations related to the immediate expensing measure.
• Table 2 – Allocating the immediate expensing limit among Canadian-controlled private corporations (CCPC). This table allows you to allocate the limit between the CCPCs of a group of associated corporations.
• The line Amount eligible for immediate expensing in the current taxation year, which is used to calculate the prorated allocated limit for a taxation year shorter than 365 days.
• Allocation scenario tables for federal Schedule 8, Québec’s Form CO-130.A (Jump Code: Q8) and for Alberta’s AT1 Schedule 13 (Jump Code: A13).

For more information on the immediate expensing measure, consult the Help (F1) and the 2021-2022 Federal Budget.

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

To take the immediate expensing measure into account, the following fields have been added:

• The line Cost of additions eligible for immediate expensing included in the amount on line 203 allows you to indicate the capital cost of property eligible for the measure. For CCA class 14, when the answer to custom question Is one of the properties acquired during the taxation year eligible for the immediate expensing measure? is Yes, the amount on this line is equal to the amount on line 203.
• The line Immediate expensing amount deducted allows you to indicate the amount of the immediate expensing limit, determined in Schedule 8 (Jump Code: 8), that is applied to each CCA class. The amount entered is deducted in the calculation of, first, line 224, UCC adjustment for other property acquired during the year, and second, the line Net capital cost additions of AIIP and ZEV acquired during the year in order to correctly calculate the regular CCA on the capital cost of additions that exceeds the limit.
• For CCA class 10.1, custom question Is the property eligible for the immediate expensing measure? is used to calculate the amount on the line Immediate expensing amount deducted according to the amount on line 203.

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

The questions Is the property an AIIP? and, for Québec purposes only, Is the property a property that qualifies for the accelerated depreciation special rules in Québec? and Is the property a property that qualifies for the additional CCA of 30% in Québec? have been moved to the Information relating to the property – CCA other than classes 10.1, 13 and 14 section. The Property that qualifies for an accelerated depreciation section has been removed.

In addition, in the Information relating to the property – CCA other than classes 10.1, 13 and 14 section, the question Is the property subject to the half-year rule? has been added and is used to calculate the amount on the line Cost of additions eligible for immediate expensing included in the amount on line 203 in the corresponding copy of Schedule 8 WORKCHART (Jump Code: 8 WORKCHART).

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

To complete Table 2 in Schedule 8 (Jump Code: 8), the Schedule 8 – Capital cost allowance (CCA) section has been added and contains the following fields:

• The question Is the corporation a CCPC that can benefit from the immediate expensing measure? When the answer to this question is Yes, a line is created in Table 2 of Schedule 8.
• The line Immediate expensing limit indicates the maximum limit amount for the corporation.
• The line Limit allocated indicates the limit amount allocated to the corporation. This amount can be entered either in Schedule 9 WORKCHART or in the Limit allocated – Federal Schedule 8 column in Table 2 of Schedule 8.

In addition, the Québec CO-130.A – Capital cost allowance and Alberta AT1 Schedule 13 – Capital cost allowance (CCA) sections have also been added. The amount on the line Limit allocated is equal to the corresponding line in the Schedule 8 section.

Québec

CO-17S.4, Non-Capital Loss Continuity Workchart – Québec (Jump Code: Q4N)

Following the tabling of Bill 90 on May 4, 2021, which was assented to on June 4, 2021, by the Government of Québec, the amount of loss incurred in the current year calculated in the Non-capital losses section now includes the patronage deduction amount (code 10) in Form QC L265-266 (Jump Code: L265/266) as well as the amount entered on the line Inclusion under section 726.29 (see the October 2009 APFF Roundtable, Q.26, “Patronage deduction and non-capital loss”) in the CO-17 return (Jump Code: QJ).

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

The column Immediate expensing amount deducted has been added, on screen only, at the end of the Capital cost allowance table. For more information on the immediate expensing measure, consult the Schedule 8 help topic.

Alberta

AT1 Schedule 13, Capital Cost Allowance (CCA) (Jump Code: A13)

The column Immediate expensing amount deducted has been added to the right of the column UCC at the end of the year. For more information on the immediate expensing measure, consult the Schedule 8 help topic.

Top

Corrected Calculations

The following problem has been corrected in version 2021 1.1:

Federal/Québec

• Forms T2054 and CO-502 – The calculation of the number of months is incorrect in Part 4

Québec

• CO-17.A.1 – The amount in the field Taxable amounts from COVID-19 programs of Schedule 1 is not updated if the program does not include the Specialized information module

Diagnostics

• Error message when opening the diagnostics pane or the Xpress tool

Top

Overview – Version 2021 1.0

Corporate Taxprep 2021 v.1.0 includes several technical and tax changes. Here is a summary of the main topics addressed in this document.

New schedule 570

Schedule 570, Ontario Regional Opportunities Investment Tax Credit (Jump Code: 570), has been added in this version of the program and allows you to claim the Ontario regional opportunities tax credit. For more information, consult the note on this topic.

New Alberta schedules

Two new schedules allowing you to calculate the Alberta Innovation Employment Grant have been added to this version of the program, i.e., AT1 Schedule 29, Alberta Innovation Employment Grant (Jump Code: A29) and AT1 Schedule 29, Listing of Innovation Employment Grant Projects Claimed in Alberta (Jump Code: A29 LISTING). For more information, consult the notes on these topics.

Schedule 3 update

Column l.1, Dividend refund of the connected payer corporation from its eligible refundable dividend tax on hand (ERDTOH), and column L, Part IV tax before deductions on taxable dividends received from connected corporations, have been added to Part 1 of Schedule 3 (Jump Code: 3). Column I.1 is used to calculate column L and column L allows the CRA to correctly identify the amount from line 2E in their assessment system. For more information, consult the note on this topic.

Version 1.1 2021

In its budget tabled on April 19, 2021, the federal government announced modifications to the capital cost allowance. These modifications apply to properties acquired after April 18, 2021, and will require significant modifications to the program. These modifications will be integrated in a 1.1 version that will be available in mid-July 2021.

Top

Improve Your Productivity

Preparer profiles

AUTHORIZATION FORMS tab

As a result of the update of the Alberta Consent Form (Jump Code: AAUT) the following modifications have been made to Section AAUT- Alberta consent form of the AUTHORIZATION FORMS tab:

• The check boxes Individual and Firm have been added under the line Authorize a representative;
• The check box Authorize access by telephone, e-mail, fax and mail has been removed;
• The check box Authorize online access (TRACS). This access also includes authorization for telephone, e-mail, fax and mail has been renamed Authorize online access (TRACS) to an individual;
• The lines to all tax programs, to corporate income tax, Other and if Other (please specify) have been removed.

Top

New Forms

Ontario

Schedule 570, Ontario Regional Opportunities Investment Tax Credit (Jump Code: 570)

The regional opportunities investment tax credit is a 10% refundable tax credit for corporations on eligible expenditures greater than $50,000 (to a maximum of $500,000) that are incurred in a designated region during the taxation year (or that were incurred in the preceding taxation year if it were a short taxation year and the tax credit was claimed). In addition, the 2021 Budget and Bill 269, tabled by the Ontario Government on March 24, 2021, added an additional 10% refundable tax credit for special expenditures, which are eligible expenditures incurred for eligible property that is considered to have become available for use after March 23, 2021, and before January 1, 2023.

The custom question Is the corporation a qualifying corporation for the Ontario Regional Opportunities Tax Credit? has been added and the answer is set to Yes when the corporation is a Canadian-controlled private corporation throughout the taxation year, has a permanent establishment in Ontario and is not exempt from tax.

To qualify for the tax credit, investments must be used to acquire, construct or renovate an eligible property in a designated region. The eligible properties are commercial or industrial buildings (or other structures) that are included in capital cost allowance classes 1 or 6, that became available for use after March 24, 2020, in the taxation year in which the tax credit is being claimed.

Custom lines and sections have been added to Parts 1 and 2 of the form to calculate special expenditures as well as to Part 3 to calculate the tax credit for special expenditures.

Schedule 570 is a multiple copy form. The first copy is dedicated to the filing corporation and Parts 1 and 3 must only be completed on this copy. In cases where a predecessor corporation (i.e. part of an amalgamation or a wound-up subsidiary) incurred eligible expenditures in a short year during the preceding 364 days before the current taxation year of the filing corporation, complete Part 2 on a separate copy of Schedule 570 for this predecessor corporation and add the amounts on lines 220 of each copy.

When opening a client file prepared with a prior version of Corporate Taxprep, if an amount was entered on line 472 of Schedule 5 (Jump Code: 5), it will be retained as an overridden amount. You will then have to complete Schedule 570 and delete the overridden amount on line 472 of Schedule 5 for the tax credit calculated in Schedule 570 to be updated in Schedule 5.

When rolling forward a client file in which the corporation has a short taxation year and the regional opportunities investment tax credit is claimed, the information entered in the table of Part 1 will be retained in the table of Part 2 and the start and end dates of the taxation year will be retained on lines 230 and 240 respectively.

Alberta

AT1 Schedule 29, Alberta Innovation Employment Grant (Jump Code: A29)

The Alberta Innovation Employment Grant (IEG) is an 8% refundable credit on the lesser of the qualifying scientific research and experimental development (SR&ED) expenditures incurred in Alberta in the taxation year after December 31, 2020, and the maximum expenditure limit for the taxation year. The corporation can also qualify for an additional credit amount of 12% if the lesser of the product of the above-mentioned amounts exceeds the base amount. The IEG amount can then be reduced linearly when the taxable capital employed in Canada for the previous taxation year is greater than $10 million and it becomes nil when this taxable capital is greater than or equal to $50 million. For more information on how to establish the expenditure limit, the base amount and the taxable capital, consult the AT1 Schedule 29, Alberta Innovation Employment Grant help topic.

Under line 290, a custom table displaying on screen only has been added to create scenarios and demonstrate the impact of the expenditure limit allocation on the IEG amount and on the tax payable in Alberta for the filing corporation and associated corporations for purposes of the IEG calculations.

Before completing this schedule, complete the AT1 Schedule 29, Listing of Innovation Employment Grant Projects Claimed in Alberta (Jump Code: A29 LISTING). For more information, consult the note on this topic. In addition, the limit of allocated expenditures, the taxable capital employed in Canada for the previous taxation year as well as the corporation’s qualifying expenditures incurred in the previous two taxation years must be entered in the Alberta AT1 Schedule 29 – Alberta innovation employment grant section of Schedule 9 WORKCHART (Jump Code: 9 WORKCHART).

AT1 Schedule 29, Listing of Innovation Employment Grant Projects Claimed in Alberta (Jump Code: A29 LISTING)

To claim the Alberta Innovation Employment Grant, you must first complete this form. You should provide the project-per-project detail of the scientific research and experimental development (SR&ED) expenditures incurred in Alberta in the taxation year after December 31, 2020, and, when the taxation year straddles January 1, 2021, the SR&ED expenditures incurred before January 1, 2021. The lines for columns 101 to 113 in the table are created from data in Schedule T661 Part 2 (Jump Code: 661 PART 2) and Schedule T1263 (Jump Code: 661 (T1263)) or if contributions to agricultural organizations for SR&ED are entered in Part 8 of Schedule 31 (Jump Code: 31).

Top

Deleted Forms

Ontario

• Schedule 546, Corporations Information Act Annual Return for Ontario Corporations (Jump Code: 546)

• Schedule 547, Corporations Information Act Annual Return for Ontario Corporations (Jump Code: 547)

• Schedule 548, Corporations Information Act Annual Return for Foreign Business Corporations (Jump Code: 548)

Alberta

• AT1 Schedule 8, Alberta Political Contributions Tax Credit (Jump Code: A8)

Manitoba

• Schedule 391, Manitoba Neighbourhoods Alive! Tax Credit (Jump Code: 391)
• Schedule 392, Manitoba Data Processing Investment Tax Credits (Jump Code: 392)
• Schedule 393, Manitoba Nutrient Management Tax Credit (Jump Code: 393)

Top

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

Corporate Identification and Other Information (Jump Code: ID)

In the Exempt Corporation section, the box Exempt under paragraph 149(1)(t) (for tax years starting before 2019), which was the third box relating to line 085, has been removed.

When opening a client file prepared with a prior version of Corporate Taxprep, this data will not be retained.

In addition, the question Must the corporation file the annual return for Ontario corporations under the Ontario Corporation Information Act? has been added to the General information section.

When opening a client file prepared with a prior version of Corporate Taxprep, the answer to this question will be Yes when Schedule 546 or Schedule 548 was applicable.

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

The following boxes, lines and sections relating to data for taxation years started before 2019 have been removed:

• In the Identification section, the box Exempt under paragraph 149(1)(t) (for tax years starting before 2019), which was the third one relating to line 085;
• In the Taxable income section, line 370, Income exempt under paragraph 149(1)(t) (for tax years starting before 2019), and amount Z, Taxable income for a corporation with exempt income under paragraph 149(1)(t) (line 360 minus line 370);
• In the Small business deduction section (SBD) , lines 425, Reduced business limit for tax years starting before 2019 (amount C minus amount E) (if negative, enter "0"), and 427, Reduced business limit after assignment for tax years starting before 2019 (line 425 minus amount J), as well as the fields for lines 1 and 2 that were used to calculate the SBD for taxation years starting before 2019;
• All fields and lines in the Refundable dividend tax on hand (for tax years starting before 2019) and Dividend refund (for tax years starting before 2019) sections.

When opening a client file prepared with a prior version of Corporate Taxprep, data entered in these boxes and sections as well as on these lines will not be retained.

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

The fourth line of column 605 is now named Taxable amounts from COVID-19 programs. Therefore, you will be able to enter on the corresponding line in column 295 the amounts received or receivable from these programs in the taxation year.

When opening a client file prepared with a prior version of Corporate Taxprep, data entered on the lines after the third line in the Miscellaneous other additions section will be retained and moved down one line in the table.

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

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

As a result of the update of the schedule, the following columns have been added to Part 1 to correctly calculate the amount on line 2E of Part 2:

• custom column I.1, Dividend refund of the connected payer corporation from its eligible refundable dividend tax on hand (ERDTOH) (for tax year in column D); and
• column L (line 280), Part IV tax before deductions on taxable dividends received from connected corporations.

Therefore, in Part 1, note 2 has been modified and note 5 has been added to explain what should be indicated in the two new columns. In addition, the note related to line 2E in Part 2 has been removed.

You will then have to complete the new columns I.1 and L in Part 1. If an amount had been entered using an override on line 2E, cancel the override on this line.

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

The amount on line 2D of Part 2 will no longer be calculated. When opening a client file prepared with a prior version of Corporate Taxprep, if an amount had been calculated or overridden on line 2D, it will be retained on this line. When rolling forward the client file, the amount that was entered in the Balance at end of year column of the Non-capital losses workchart of Schedule 4N (Jump Code: 4N) for the 10^th preceding year will be updated to line 2D.

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

The following lines have been removed from the schedule:

• line 525, Prince Edward Island political contribution tax credit (for contributions made before June 12, 2018);
• line 892, Contribution;
• line 324, Manitoba data processing investment tax credits (from Schedule 392);
• line 325, Manitoba nutrient management tax credit (from Schedule 393);
• line 610, Manitoba Neighbourhoods Alive! tax credit (from Schedule 391);
• line 653, British Columbia political contribution tax credit (for contributions made before November 30, 2017); and
• line 896, Contribution.

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

Schedule 8, Capital Cost Allowance (CCA) (Jump Code: 8)*

The column For tax years ending before November 21, 2018: 1/2 of net additions for line 211 has been removed.

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

Line 211, 1/2 of net additions, and the accompanying text, i.e., For taxation years ending before November 21, 2018: have been removed from the CCA other than classes 10.1, 13 and 14 and CCA class 10.1 sections.

When opening a client file prepared with a prior version of Corporate Taxprep, data entered on these lines will not be retained.

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

A line has been added to the Québec CO-17 – Corporation income tax return section of the associated corporations copy to indicate the amount of assets as per the financial statements of the second prior taxation year. The calculation of the amount of assets has been adjusted based on the taxation year-end date of the associated corporation in relation to the taxation year-end date of the filing corporation. The latter is used to determine the tax credit rate for SR&ED salaries and design expenditures incurred after May 9, 1996, as well as the refundability rate of the tax credit for investment and innovation, indicated on the line All other associated corporation (if any) under line 18 of the CO-17 return (Jump Code: QJ).

When opening a client file prepared with a prior version of Corporate Taxprep, if both the start date and end date of the corporation’s taxation year are respectively after the start and end dates of the filing corporation’s taxation year, the amount on the line Assets as per the financial statements of the prior taxation year will be retained as an overridden amount. Enter the amount of Assets as per the financial statements of the second prior taxation year as well as Assets as per the financial statements of the prior taxation year and cancel the override.

When rolling forward a client file, the amount entered on the line Assets as per the financial statements of the prior taxation year will be rolled forward to the line Assets as per the financial statements of the second prior taxation year.

Schedule 16, Patronage Dividend Deduction (Jump Code: 16)*

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

The lines relating to the number of days in the tax year before 2019 have been removed from Parts 2, 3 and 4. When opening a client file prepared with a prior version of Corporate Taxprep, no value related to the removed lines will be retained.

Schedule 21, Federal and Provincial or Territorial Foreign Income Tax Credits and Federal Logging Tax Credit (Jump Code: 21)

In the April 29, 2021, Notice of Ways and Means Motion to implement certain provisions of the budget tabled in Parliament on April 19, 2021 and other measures, subclause 126(1)(b)(ii)(A)(III) ITA and subclause 126(2.1)(a)(ii)(A)(III) ITA have been amended to take into account the new employer deduction on non-qualified securities under a employee stock option agreement. Therefore, line 6D.1, Employer deduction in respect of non-qualified securities – Paragraph 110(1)(e), has been added to Part 6.

Shedule 25, Investment in Foreign Affiliates (Jump Code: 25)*

Schedule 54, Low Rate Income Pool (LRIP) Calculation (Jump Code: 54)*

Line 120, which was used to indicate the income for the credit union deduction, has been removed from the first copy of the schedule because it is no longer possible to enter an amount on this line for a taxation year starting after 2018. The line is still present in the history copies of the schedule.

Schedule 88, Internet Business Activities (Jump Code: 88)*

Schedule 89, Request for Capital Dividend Account Balance Verification (Jump Code: 89)*

 

Schedule 100, Balance sheet information (Jump Code: G100)*;

Schedule 2008 & 2009, Tangible Capital Assets and Accumulated Amortization (Jump Code: G2008/2009);

Schedule 2178 & 2179, Intangible Capital Assets and Accumulated Amortization (Jump Code: G2178/2179);

Schedule 2589, Long-term Assets (Jump Code: G2589);

Schedule 101, Opening balance sheet information (Jump Code: G101)*;

Schedule 2009-1, Accumulated Amortization of Tangible Capital Assets (Jump Code: G2009-1);

Schedule 2179-1, Accumulated Amortization of Intangible Capital Assets (Jump Code: G2179-1); and

Schedule 2589-1, Long-term Assets (Jump Code: G2589-1)

In accordance with the CRA requirements, a diagnostic of type “Mandatory modification” of the GIFI group has been added to the accumulated amortization lines in the above forms to inform you that only positive values should be entered on these lines.

Schedule 141, Notes Checklist (Jump Code: G141)*

Client Letter, Client Letter Worksheet (Jump Code: LW)

Boxes A29 LISTING have been added to the Form(s) to retain subsections of the AT1 – Paper format and AT1 – NET FILE sections, because the Guide to Claiming the Alberta Innovation Employment Grant mentions that Form AT1 Schedule 29 Listing (Jump Code: A29 LISTING) does not have to be filed, but must be provided upon request to the Tax and Revenue Administration (TRA).

Inducement, Inducement Calculation Workchart (Jump Code: INDUCEMENT)

The line Canada emergency wage subsidy (CEWS) and Canada emergency rent subsidy (CERS) has been renamed Canada emergency wage subsidy (CEWS), Canada emergency rent subsidy (CERS) and other taxable amounts from COVID-19 programs. When an amount is entered on this line, it will be transferred to the Miscellaneous other additions section of Schedule 1 (Jump Code: 1) and recognized on the line of column 295 that is associated to line 4, Taxable amounts from COVID-19 programs of column 605.

The line Ontario sound recording tax credit has also been removed from the Ontario subsection located in the Tax credits whose amount should be added to income section.

As well, following the implementation of Form AT1 Schedule 29, Alberta Innovation Employment Grant (Jump Code: A29), the line Portion of the Alberta innovation employment grant that relates to the prescribed proxy amount (PPA) and portion of the Alberta investment tax credit that relates to contributions made to SR&ED farming organizations has been added to the Alberta subsection in the Tax credits whose amount should be added to income section.

In addition, as a result of the removal of Schedule 391 (Jump Code: 391), the line Manitoba neighbourhoods alive tax credit has been removed from the Manitoba subsection located in the Tax credits whose amount should be added to income section.

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

Following the update of the AgriStability Supplementary Form, the Authorized Representative (if applicable) section has been removed. In addition, the field related to point b) has also been removed from the Additional Information section. Finally, the line Crop Insurance AFSC ID has been added at the top of the CROP INVENTORY WORKSHEET section.

AgriStability and AgriInvest – Programs (Jump Code: AGRI/HAGRI) – Prince Edward Island*

The following changes have been made to Form Statement A, Statement of Farming Activities for Corporations:

• In the Participant Identification section, the Fax Number field has been removed and the Mobile field has been moved next to the Telephone field.
• In the Contact Person Information section, the First name and Last Name fields have been removed and replaced by the Name field. In addition, the Fax Number field has been removed and the Email field has been added next to the Telephone field.
• In the Additional Contact (Accountant, Spouse, and/or other) section, you can now enter a single contact person. Therefore, the fields to enter the information of the second contact person have been removed.
• In the Confidential Information and Participant Consent section of Statement A, when the participant’s form from last year is completed, an agreement and signature section has been added. In addition, the electronic signature has been added to this section.
• In the Income section, lines with codes 426, 420 and 486 have been removed.

When opening a client file prepared with a prior version of Corporate Taxprep, if overridden data had been entered in one of the First name and/or Last Name fields, it will be retained as overridden data in the new Name field.

The following changes have been made to the Supplemental Forms (Participants From 2019):

• In Schedule 2b, the Corn Silage field has been moved between the Corn and High Moisture Corn fields.
• In Schedule 2c, the Transfers column has been removed from the tables in the Livestock Production and Inventory Record section because this element should no longer be included in the formula to calculate the ending inventory.
• Schedule 6 has been removed from the form.

Corporate Taxpayer Summary (Jump Code: SUM)

Subsection Alberta and the Taxable capital used to calculate the Alberta innovation employment grant (Schedule A29) column have been added to the Summary – taxable capital section. The total in this column is used to calculate line 126 in Form AT1 Schedule 29, Alberta Innovation Employment Grant (Jump Code: A29).

In addition, as a result of the removal of Schedule 391 (Jump Code: 391), the line Neighbourhoods alive! – Schedule 391 has been removed from the Manitoba subsection located in the Summary of provincial carryforward amounts section.

T661 Part 2, Project Information (Jump Code: 661 PART 2)

Subsection Alberta Innovation Employment Grant has been added to Section A, on screen only, to indicate when all or part of the qualifying SR&ED expenditures for this project have been incurred in Alberta. To create a project line in Form AT1 Schedule 29, Listing of Innovation Employment Grant Projects Claimed in Alberta, Listing of Innovation Employment Grant Projects Claimed in Alberta (Jump Code: A29 LISTING), select either the After December 31, 2020, check box or the After December 31, 2020, and before January 1, 2021, check box. If one of these boxes has been selected, the title (line 200) and the code (line 206) of the project will be updated to Form AT1 Schedule 29 Listing, which you will then have to complete. If the check box After December 31, 2020, and before January 1, 2021, is selected, two lines will be created in the form and will have to be completed.

T1134, Information Return Relating to Controlled and Non-Controlled Foreign Affiliates (Jump Code: 1134)*

If you have paper-filed a T1134 return for a tax year starting after December 31, 2020, and you must amend, regardless of the amendment, the information contained in the summary or in the supplements of the T1134 return, the hard copy of the return has to be filed again and you must indicate the nature of the amendment for the summary and each supplement. Therefore, a drop-down list has been added, on screen only, at the beginning of the summary and of each supplement to allow you to indicate the type of return and the type of supplement, respectively. Note that these drop-down lists display only when you complete an amended return that will be paper-filed. When printing the T1134 return, the nature of the amendment, if applicable, will be printed at the top of the summary and each supplement being amended, in accordance with the T1134 form instructions.

In addition, for a tax year starting after December 31, 2020, in Section 3.A of the T1134 summary form, the following items must be taken into account:

• You can no longer enter “NA” or “SO” in column Social insurance number;
• You can no longer enter “NR” or “PE” in column Business number (BN); and
• You can no longer enter “NR” or “PE” in column Partnership’s Account Number.

When opening a client file prepared with a prior version of Corporate Taxprep, the characters that are no longer allowed in the above-mentioned columns will not be retained.

T1263, Third-Party Payments for Scientific Research and Experimental Development (SR&ED) (Jump Code: 661 (T1263))

Subsection Alberta Innovation Employment Grant has been added to Part 1, on screen only, to indicate when all or part of the qualifying SR&ED expenditures for this project have been incurred in Alberta. To create a project line in Form AT1 Schedule 29,Listing of Innovation Employment Grant Projects Claimed in Alberta (Jump Code: A29 LISTING), select either the After December 31, 2020, check box or the After December 31, 2020, and before January 1, 2021, check box. If one of these boxes has been selected, the name of the third party (line 701) will be updated in Form AT1 Schedule 29 Listing, which you will then have to complete. If the check box After December 31, 2020, and before January 1, 2021, is selected, two lines will be created in the form and will have to be completed.

T2054, Election for a Capital Dividend Under Subsection 82(2) (Jump Code: 2054)*

As a result of the update of the form, all lines have been renumbered.

 

Ontario

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

In Part 2, the line If your tax year starts before 2019, line 427 of the T2 return, which related to business limits for tax years started before 2019 (former line 2B.1), has been removed. When opening a client file prepared with a prior version of Corporate Taxprep, if an amount was entered on this line, it will not be retained.

 

Québec 

Québec Tax Instalments (Jump Code: IQC)

In the Instalment base calculation section, the line Income tax and capital tax adjustment for amalgamation, wind-up or transfer has been split into two lines, i.e. Income tax adjustment for amalgamation, wind-up or transfer and Tax on capital adjustment for amalgamation, wind-up or transfer. In addition, the amount on the line Instalment base amount is now calculated when the corporation has indicated being exempt from income tax on line 31 of the CO-17 return (Jump Code: QJ) but an amount is shown on line Adjusted tax on capital payable or line Compensation tax payable.

When opening a client file prepared with a prior version of Corporate Taxprep, if an amount is entered on the line Income tax and capital tax adjustment for amalgamation, wind-up or transfer, it will be retained on the line Tax on capital adjustment for amalgamation, wind-up or transfer when the corporation has indicated being exempt from income tax on line 31 of the CO-17 return. Otherwise, the amount will be retained on the line Income tax adjustment for amalgamation, wind-up or transfer. If the amount on the line Income tax and capital tax adjustment for amalgamation, wind-up or transfer relates to both the income tax and tax on capital, it must be allocated between the two lines.

When rolling forward a client file, the total of the amounts entered on the lines Income tax adjustment for amalgamation, wind-up or transfer, Tax on capital adjustment for amalgamation, wind-up or transfer and Compensation tax adjustment for amalgamation, wind-up or transfer will be rolled forward to these two lines Adjustment for amalgamation, winding up or transfer in Part 2.

CO-400, Resource Deduction (Jump Code: Q12)*

Lines 74a, If the taxation year ends after July 30, 2019, and is less than 51 weeks, enter the percentage from line 08. Otherwise, enter 100% and 74b, Multiply line 74 by line 74a in Part 3.1.1 as well as lines 138a, If the taxation year ends after July 30, 2019, and is less than 51 weeks, enter the percentage from line 08. Otherwise, enter 100% and 138b, Multiply line 138 by line 138a in column B and C of Part 4.1.3 have been added to calculate the amount claimed for accelerated expenses prorated by the number of days in a taxation year of less than 51 weeks and that ended after July 30, 2019.

When opening a client file prepared with a prior version of Corporate Taxprep, if the amount on lines 74, 138 in column B or 138 in column C is overridden, it will be retained on the new lines 74b, 138b in column B and line 138b in column C, respectively.

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

In Part 2, custom lines Amount exempt from income tax under subsection 998(k) and Other amounts included on line 10 that are not subject to income tax under Part I of the Taxation Act have been removed. In addition, line 11 now contains an input field.

When opening a client file prepared with a prior version of Corporate Taxprep, data entered on the removed lines will not be retained. However, if on line 11, an amount had been calculated or overridden, it will be retained.

In its 2021-2022 Budget tabled on March 25, 2021, the Government of Québec announced an increase in the small business deduction (SBD) rate. The 7.5% SBD rate will be increased so that the maximum rate that a corporation can qualify for after March 25, 2021, is 8.3%. To take this new measure into account, custom section SBD rate for a taxation year that includes March 25 and 26, 2021 has been added under Part 12, but on screen only.

In addition, the Ministère des Finances du Québec announced the addition of an option for the number of remunerated hours. As a result, when the taxation year ended after June 30, 2020, but before July 1, 2021, a new question will be displayed under line 07b to indicate if you opt to use the remunerated hours from the previous year. If you answer Yes to the question, the number of hours will have to be entered on the line Number of hours from the previous year. This number of hours will be used in computing Section 9.2.

When rolling forward the file, if a number of hours was entered on line 98j, this number will be updated to the line Number of hours from the previous year. Otherwise, the greater of the amounts entered on line 07a or 07b will be updated to this line.

Note that you can take into account this option for the number of remunerated hours by answering the custom question Is the number of paid hours of the employees of the partnership in the fiscal period ending in the taxation year of the corporation greater than 5,000 hours? found in Form CO-771.2.1.2 (Jump Code: 771212).

CO-1029.8.33.6, Tax Credit for an On-the-Job Training Period (Jump Code: 10298336)

Following the tabling of the Québec Budget on March 25, 2021, the custom box The training period started after March 25, 2021, and before May 1, 2022, has been added above Part 2. The status of this box is determined based on the date entered on line 18c.

When the training period started after March 25, 2021, but before May 1, 2022, and the corporation (or a partnership) does not qualify for an increased in the tax credit rates, the rate is 30%.

However, when the eligible trainee is a disabled person, an immigrant or a Native person or when the training period is served in a qualifying region, the rate is 40%.

CO-1029.8.33.CS, Tax Credit for SMBs that Employ Persons with a Severely Limited Capacity for Employment (Jump Code: 1029833CS) and

CO-1029.8.33.TE, Tax Credit for Small and Medium-Sized Businesses to Foster the Retention of Experienced Workers (Jump Code: 1029833TE)

The two questions in the Identification section that display on screen will now have to be answered by the filing corporation only. When the corporation is a member of a qualified partnership that incurred qualified expenditures or when the partnership is a member of an interposed partnership that is a member of a qualified partnership that incurred qualified expenditures, the corporation will have to answer the following questions:

• Is the paid-up capital that would be allocated to the partnership for the preceding year less than $15 million?; and
• Does the number of remunerated hours of the partnership’s employees, calculated for the fiscal year, exceed 5000, or is the partnership a corporation in the primary or manufacturing sector?

When opening a client file prepared with a prior version of Corporate Taxprep, the answers to the following questions will be updated to the new questions for the partnerships:

• 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?

CO-1029.8.36.II, Tax Credit for Investment and Innovation (Jump Code: 1029836II)

Following the 2021 Québec Budget, tabled on March 25, 2021, in which was announced a temporary increase in the tax credit for specified property acquired and that became available for use after March 25, 2021, and before January 1, 2023, the following modifications have been made to the form:

• In the Identification section, custom question For which period do the specified expenses qualify? has been added;
• For each economic vitality zone in Part 6, custom lines have been added to separately calculate the tax credit from specified expenses eligible to the increased rate from the tax credit from specified expenses eligible to the regular rate.

When, in a taxation year and for an economic vitality zone, specified expenses are incurred and relate to specified property acquired before March 26, 2021, as well as property acquired and that became available for use after March 25, 2021, you must complete a copy of the form for each period by selecting the relevant period to answer the custom question and by entering the specified property and expenses related to that period.

The total of the amounts entered on lines 88, 91 and 94, for the economic vitality zones, is equal to the total of the amounts entered on the lines used to calculate the tax credit at the regular rate and the tax credit at the increased rate.

When opening a client file prepared with a prior version of Corporate Taxprep, if Form CO 1029.8.36.II is applicable and the corporation’s tax year-end date is prior to March 26, 2021, the box After March 10, 2020, and before March 26, 2021 will be automatically selected to answer the custom question For which period do the eligible specified expenses qualify? in each copy of the form.

CO-1159.2, Compensation Tax for Financial Institutions (Jump Code: 11592)*

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

Line 186a, Portion of the amount on line 181 related to R&D work conducted before March 11, 2020, has been added and must be completed when the conditions to complete Part 6 are met.

 

British Columbia

Schedule 422 (T1196), British Columbia Film and Television Tax Credit (Jump Code: 1196)*

Schedule 423 (T1197), British Columbia Production Services Tax Credit (Jump Code: 1197)*

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

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

 

Alberta

Alberta Consent Form (Jump Code: AAUT)*

As a result of an update, the following modifications have been made to the form:

• The form is now used to authorize a third-party representative to receive taxpayer information and/or cancel this authorization only for the corporate income tax account. For other programs or accounts, use Form Alberta Consent Form AT4931;
• The form is now comprised of seven parts instead of five;
• In Part 1, the custom question Do you want to authorize online access (TRACS) to an individual? has been added on screen only to generate data in the new Part 4. The information relating to this question is updated with the information in the preparer profile if the check box Update the information on the form based on the preparer profile used in the Identification form is selected in the General Information section. Otherwise, the answer to this question will have to be entered directly on the form. When opening a client file prepared with a prior version of Corporate Taxprep, if box (b) Authorize online access (TRACS). This access also includes authorization for telephone, e-mail, fax and mail of former Part 2 has been selected, the answer to the new custom question will be Yes;
• In Part 2, the line Alberta Business Identification Number has been removed;
• In Part 3, boxes (a) Authorize access by telephone, e-mail, fax and mail and (b) Authorize online access (TRACS). This access also includes authorization for telephone, e-mail, fax and mail have been removed. The lines Name of Individual and Name of Firm have been replaced by a single line. In addition, the boxes Name of Individual and Name of Firm have been added. This information can be updated with the information of the preparer profile if the check box Update the information on the form based on the preparer profile used in the Identification form is selected or from the Form Representative Authorization Request (Jump Code: AUTHORIZATION) if the check box Update of the information in the form according to the information entered in Form Authorization or in Form Cancellation, as applicable is selected. Part 3 must always be completed in the case of an authorization;
• Part 4 has been added and is used to authorize an individual to have online access (TRACS). This section is updated with data in Part 3 when the check box Authorize a third party representative to receive taxpayer information is selected in Part 1, the answer to the custom question in Part 1 is Yes and the box Individual in Part 3 is selected;
• As the form is now only used for corporate income tax accounts, the boxes for the programs in Part 5 have been removed. When opening a client file prepared with a prior version of Corporate Taxprep, if a copy of the form had only been completed for an authorization and if, in former subsection Program, a box other than All programs or Corporate Income Tax had been selected, the copy of the form will not be retained;
• In Part 7, the line Fax Number has been added and is updated with information from the Certification section of Form Identification (Jump Code: ID).

AB Instalment, Alberta Tax Instalments (Jump Code: IAB)

Following the removal of Alberta Schedule 8, Alberta Political Contributions Tax Credit (Jump Code: A8), the line Political contributions tax credit has been removed from the Instalment base calculation section.

AT1, Alberta Corporate Income Tax Return (Jump Code: AJ)*

As a result of an update of the form, the following lines have been removed:

• 071, Alberta Manufacturing and Processing Profits Deduction Schedule 11, line 023;
• 074, Alberta Political Contributions Tax Credit Schedule 8, line 030;
• You have requested that your Notice of Assessment be faxed to you instead of mailed; and
• 093, If you would like your Notice of Assessment provided to you by fax rather than by mail, please specify your complete fax number.

Line 129, Innovation Employment Grant Schedule 29, line 134 has been added. For more information, consult the note relating to this topic.

AT1 Schedule 4, Alberta Foreign Investment Income Tax Credit (Jump Code: A4)*

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

As per an Alberta Tax and Revenue Administration requirement, on line 035, the amount that updates from line 411 in Schedule 1 (Jump Code: 1) will now be indicated as a positive value and the amount that updates from line 231 in Schedule 1 will now be displayed as a negative value.

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

Following the implementation of the Alberta Schedule 29 (Jump Code: A29), the description of the check box related to line 7 has been changed to It is not claiming the Alberta Scientific Research and Experimental Development (SR & ED) Tax Credit or an Alberta Innovation Employment Grant nor is it reporting a recapture of SR & ED.

 

Saskatchewan

Schedule 402, Saskatchewan Manufacturing and Processing Investment Tax Credit (Jump Code: 402)*

Schedule 411, Saskatchewan Corporation Tax Calculation (Jump code :411)*

In Part 1, the line used to calculate the phasing out of the credit unions deduction for the period prior to January 1, 2019 (formerly line 1H.1) has been removed from the form, because a taxation year started before January 1, 2019, cannot be entered in this version of the program. In addition, a line has been added to Part 3 to include the increase in the lower rate of tax, which will increase from 0% to 1% for the number of days in the taxation year that are after June 30, 2022, and before July 1, 2023.

 

Manitoba

Schedule 380, Manitoba Research and Development Tax Credit (Jump Code: 380)*

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

The subsection Period prior to January 1, 2019 has been removed from the form because a taxation year started before January 1, 2019, cannot be entered in this version of the program. In addition, Part 2, Income from active business when there is partnership income, has also been removed, because the Nova Scotia business limit is the same as that of the federal government for taxation years started after 2018.

Schedule 388, Manitoba Film and Video Production Tax Credit (Jump Code: 388)*

Line 876, Manitoba production company bonus, has been added to Part 10 to allow you to calculate the Manitoba production company bonus for the cost of production tax credit. As a result, the cost of production tax credit is now indicated on the new line 10C in Part 10. When opening a client file prepared with a prior version of Corporate Taxprep, if an overridden amount was entered on line 875, it will be retained as an overridden amount on line 10C.

Schedule 394, Manitoba Rental Housing Construction Tax Credit (Jump Code: 394)*

 

Northwest Territories

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

 

Yukon

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

 

Nunavut

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

 

New Brunswick

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

In Part 1, the line If your tax year starts before 2019, line 427 of the T2 return, which related to the business limits for taxation years starting before 2019 (former line 1D), has been removed. In addition, in Part 2, the lines relating t the calculation of tax at the lower rate for the number of days in the taxation year prior to April 1, 2017 (former line 2A.1) as well as for the number of days in the taxation year after March 31, 2017, and before April 1, 2018 (former line 2A) have been removed from this schedule.

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

 

Nova Scotia

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

Schedule 347, Additional Certificate Numbers for the Nova Scotia Digital Media Tax Credit (Jump Code: 347)*

 

Prince Edward Island

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

In Part 2, line 2A.1 relating to the lower tax rate for the period prior to January 1, 2019, was removed. When opening a client file prepared with a prior version of Corporate Taxprep, if an amount was entered on this line, it will not be retained.

 

Newfoundland and Labrador

Schedule 307, Newfoundland and Labrador Corporation Tax Calculation (Jump Code: 307)*

Top

Technical Information

Technical Changes

Filing Form RC4649 with a Web Access Code

You can now file Form RC4649 with a Web Access Code (WAC). To do so, make sure to complete Form WAC (Jump Code: WAC). For more information on how to get a WAC to use to file an eligible document, consult the topic Prepare Returns for electronic transmission.

Rolling forward Cantax files

You can now roll forward Cantax files created with a Cantax version supported by the current version of Corporate Taxprep.

To learn how to roll forward a file, consult the topic Roll Forward Client Files.

Rolling forward the monitor

The option Dividend refund – before 2019 has been removed from the Monitor pane of the Options and Settings. However, the field is still displayed in the monitor when rolling it forward. To remove it, right click the Dividend refund – before 2019 in the monitor and select Remove field.

Top

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 2021 v.1.0.

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

Top

Corrected Calculations

The following problem has been corrected in version 2021 1.0:

Federal

• The amount of eligible SR&ED expenditures in Schedules 508 and 566 is too high when contributions to agricultural organizations for SR&ED are incurred during the taxation year

Québec

• CO-1029.8.36.II – The tax credit is not calculated according to the increase in the tax rates announced in the Québec Budget tabled on March 25, 2021
• CO-771 – Increase in the small business deduction (SBD) rate for the taxation year ending after March 25, 2021
• CO-1029.8.33.6 – Increase in the rate of the tax credit on line 91 for a qualified expenditure incurred after March 25, 2021, with respect to certain qualified training periods started after March 25, 2021

Manitoba

• Schedule 387 – For a tax year ending after December 31, 2020, the credit earned in the current tax year (line 120) and the credit claimed in the current year (line 2C) are incorrect

Top

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.

In addition, 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.

Top

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://support.wolterskluwer.ca/en/newsletter/?inc=manage.

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).

Top

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://support.wolterskluwer.ca/en/support//

Top