Release Notes

End of support for Windows 32-bit versions

As announced in the Windows 10 version 2004 system requirements, Microsoft stopped releasing 32-bit versions of operating systems. Therefore, please note that the versions of our software, which will be released in December 2022, will have a 64-bit architecture, and will no longer support 32-bit operating systems. Therefore, Taxprep will no longer operate on 32-bit operating systems.

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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 2022 v.1.1 is designed to process corporate tax returns with taxation years beginning on or after January 1, 2020, and ending on or before October 31, 2022.

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, 2021, to June 30, 2022.

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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Training

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

For Taxprep training, please contact the Professional Services team at learning@wolterskluwer.com.

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Overview – Version 2022 1.1

Corporate Taxprep 2022 v.1.1 includes several technical and tax changes. Here is a summary of the main topics addressed in this document.

Update of Schedule 8 (Jump Code: 8)

We have added to this version the latest official update of Schedule 8, in which the CRA integrated the modifications related to immediate expensing. For more information, consult the note relating to this subject.

New form TP-130.EN (Jump Code: Q8EN)

Form TP-130.EN, Agreement Respecting the Immediate Expensing Limit, has been added to this version. For more information, consult the note relating to this subject.

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Federal

Schedule 7, Aggregate Investment Income and Income Eligible for the Small Business Deduction (Jump Code: 7)

To calculate the adjusted aggregate investment income under column C of Part 3A, it is now possible to enter taxable capital gains and allowable capital losses under section 34.2 ITA on lines 1.3 and 2.3.

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New Forms

Québec

TP-130.EN, Agreement Respecting the Immediate Expensing Limit (Jump Code: Q8EN)

This form is used to allocate the $1.5 million immediate expensing limit among the associated eligible persons or partnerships. The limit allocated to the filing corporation will be used to establish capital cost allowance for immediate expensing property.

The information relating to associated corporations in Parts 2 and 3 is completed with the data entered on the corresponding lines in Schedule 9 WORKCHART (Jump Code: 9 WORKCHART), while the information relating to associated persons or partnerships in Parts 2 and 3 is completed with the data entered on the corresponding lines in Section 1 of Schedule 8 (Jump Code: 8). The information in columns B and C of Part 2 and in columns C and D of Part 3 for associated persons or partnerships must be manually entered, as this information is located in input cells. When rolling forward a client file, the data in the input cells will be retained.

The form becomes applicable when Parts 2 and 3 are completed correctly, the corporation has a permanent establishment in Québec and the corporation is eligible for immediate expensing on the federal income tax return.

In addition, in the instructions at the top of the form, Revenu Québec asks that the federal immediate expense limit agreement be attached to the Corporation Income Tax Return (Jump Code: QJ). Therefore, for corporations that have a permanent establishment in Québec, Schedule 8 will also be printed with the Québec corporate income tax return.

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

Part 1, Agreement between associated eligible persons or partnerships (EPOPs), has been added to indicate the percentage of the immediate expensing limit assigned under the agreement to each corporation, individual and partnership of an associated group. The Add and Delete buttons at the top of the table allow you to manage the lines for associated individuals and partnerships. To add an associated eligible corporation, use Schedule 9 WORKCHART (Jump Code: 9 WORKCHART). The new question at line 105, Are you associated in the tax year with one or more EPOPs with which you have entered into an agreement under subsection 1104(3.3) of the Regulations? will be set to Yes when at least one line other than the line of the filing corporation contains data.

The CCA calculation table is now in Part 2 and the following lines and columns have been added for the immediate expensing calculation:

• Line 232, Cost of acquisitions from column 3 that are designated immediate expensing property (DIEP)
• Line 234, Proceeds of dispositions of the DIEP
• Line 236, UCC of the DIEP
• Lien 238, Immediate expensing
• Column 13, Cost of acquisitions on remainder of Class
• Column 15, Remaining UCC

In addition, line 225, previously named Cost of acquisitions from column 3 that are accelerated investment incentive properties (AIIP) or zero-emission vehicle (ZEV) has been renamed Cost of acquisitions from column 13 that are accelerated investment incentive properties (AIIP) or properties included in Classes 54 to 56. All other existing columns have been renumbered.

New lines 105 to 125 in Part 1 and lines 232 to 238 in Part 2 are now part of the Internet filing and the T2 barcodes.

Note that in cases where the corporation is associated with other persons or partnerships for the allocation of the immediate expensing limit and that it has filed its T2 return before the Schedule 8 version that includes immediate expensing was published, it will have to submit a copy of Schedule 8 with Part 1, Agreement between associated eligible persons or partnerships (EPOPs), duly completed.

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

The calculation of the line Maximum allowable CCA has been modified in the following situations to conform with the Income Tax Regulations (ITR) now in effect:

• CCA class 14: the undepreciated capital cost of properties that is taken into consideration in the calculation of the CCA is now reduced by the immediate expensing amount related to these properties, according to subsection 1100(0.2) and paragraph 1100(1)(c) ITR.
• Shortened taxation years: the immediate expensing amount is included in the allowable CCA amount before the latter amount is prorated for a year with less than 12 months, according to subsection 1100(3) ITR.

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

The Québec CO-130.AD – Capital cost allowance for immediate expensing property section has been renamed Québec TP-130.EN - Agreement respecting the immediate expensing limit. Several fields have been added to complete Form TP-130.EN, Agreement Respecting the Immediate Expensing Limit (Jump Code: Q8EN). The Immediate expensing limit and Percentage of the allocated limit for the calendar year covered fields are calculated based on the data in the Schedule 8 – Capital cost allowance (CCA) section, whereas the Title or position of authorized representative and Date of signature of authorized representative fields of the copy for the filing corporation are calculated based on the data in Form Identification, Corporate Identification and Other Information (Jump Code: ID). The two fields for the copies of the associated corporations are calculated based on the data in the Québec CO-17 – Corporation income tax return section. For more information, consult the note relating to this subject.

Schedule 63, Return of Fuel Charge Proceeds to Farmers Tax Credit (Jump Code: 63)*

Line 1A has been renumbered 080 and no longer refers to line 9898 of Schedule 125 (Jump Code: G125). In addition, this line is now an input line. You must indicate the total farming expenses that represent the amounts deducted in calculating net income from farming for income tax purposes. Since line 080 is an input line, the program will prompt a diagnostic to complete this line if the corporation has a permanent establishment in a designated province (Ontario, Manitoba, Saskatchewan and Alberta), its taxation year ends after December 31, 2020, and farm expenses are entered in the GIFI. When opening a client file prepared with a prior version of Corporate Taxprep, only overridden data that was entered on line 1A will be kept on line 080.

T183 CORP, Information Return for Corporations Filing Electronically (Jump Code: T183)

When opening a client file prepared with a prior version of Corporate Taxprep, if a time entered on line 932, Electronic signature time (HHMMSS), includes a character other than a number, this time will not be retained.

 

Québec

CO-17.SP, Information and Income Tax Return for Non-Profit Corporations (Jump Code: QJSP)

It is now possible to file an amended return electronically. For more information on the different ways to file an amended return, consult the Question used to specify whether there is an adjustment request concerning a Québec tax return section in the Corporate Identification and Other Information topic.

CO-130.AD, Capital Cost Allowance for Designated Immediate Expensing Property (Jump Code: Q8AD)*

This form is now an official Revenu Québec form.

CO-156.TR, Additional Deduction for Transportation Costs of Small and Medium-Sized Manufacturing Businesses (Jump Code: 156TR)

In its Information Bulletin 2022-4, published on June 9, 2022, the Québec government has announced a consequential amendment to the additional deduction for transportation costs incurred by remote small and medium-sized businesses to reflect the harmonization with the federal tax legislation with respect to the widening of the range over which the business limit is reduced based on the combined taxable capital employed in Canada that was announced in the April 7, 2022, budget.

For this reason, we have made changes to section 5 Additional deduction for transportation costs of small and medium-sized manufacturing businesses, on screen only, to include this new measure. When the taxation year starts after April 6, 2022, the amount of line 73 will be $40 million instead of $5 million, and lines 71 to 78 will be calculated if the paid-up capital is greater than $10 million, but less than $50 million.

CO-156.TZ, Additional Deduction for Transportation Costs of Small and Medium-Sized Businesses Located in a Special Remote Area (Jump Code: 156TZ)

In its Information Bulletin 2022-4, published on June 9, 2022, the Québec government has announced a consequential amendment to the additional deduction for transportation costs incurred by remote small and medium-sized businesses to reflect the harmonization with the federal tax legislation with respect to the widening of the range over which the business limit is reduced based on the combined taxable capital employed in Canada that was announced in the April 7, 2022, budget.

For this reason, we have made changes to section 2 Additional deduction for transportation costs of small and medium-sized businesses located in a special remote area, on screen only, to include this new measure. When the taxation year starts after April 6, 2022, the amount of line 16 will be $40 million instead of $5 million, and lines 13 to 20 will be calculated if the paid-up capital is greater than $10 million, but less than $50 million.

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

In its Information Bulletin 2022-4, published on June 9, 2022, the Québec government has announced that it is harmonizing with the federal government's tax measure with respect to the widening of the range over which the business limit is reduced based on the taxable capital employed in Canada that was announced in the April 7, 2022, budget.

For this reason, we have made changes to subsection 8.1 Business limit used to determine the SBD, on screen only, to include this new measure. When the taxation year starts after April 6, 2022, the amount of line 84b will be $40 million instead of $5 million, and lines 84 to 95 will be calculated if the paid-up capital is greater than $10 million, but less than $50 million.

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Corrected Calculations

The following problems have been corrected in version 2022 1.1:

Federal

• Schedule 8 WORKCHART and AUTO LEASE – Automobile expense deduction limits for acquisitions and leases entered into after 2021 are incorrect
• Schedule 8 – The amount eligible for immediate expensing is incorrect for a taxation year with a number of days between 357 and 364
• Schedule 63 – The description of line 1A and the amount calculated on this line are incorrect
• Schedule 8 WORKCHART – The cost of acquisitions of DIEP in columns Québec and Alberta is incorrect if property acquired previously in Schedule 8 WORKCHART ADD and current-year additions are entered in Schedule 8 WORKCHART
• Schedule 8 – The amount eligible for immediate expensing for Québec and Alberta is incorrect for a short taxation year when the amount allocated to the corporation is $1,500,000
• Schedule 8 WORKCHART – The amount calculated on line “Cost of acquisitions that are AIIP and ZEV (other than DIEP)” may be incorrect when Schedule 8 WORKCHART ADD includes property that is both AIIP and DIEP

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Overview – Version 2022 1.0

Corporate Taxprep 2022 v.1.0 includes several technical and tax changes. Here is a summary of the main topics addressed in this document.

Calculations related to the immediate expensing measure

Government authorities have confirmed to us that they accept returns where the immediate expensing measure has been applied. We have therefore integrated the calculations related to this. However, the CRA and the Alberta government have informed us that adjustment requests for a return to take into account the immediate expensing measure will be processed only when the bill confirming this measure receives Royal Assent. For more information, consult the note relating to this subject.

Automobile deduction limits

The calculations related to the automobile deduction limits applicable to the 2022 taxation years have been integrated, but only for Québec returns. The automobile deduction limits applicable to the 2022 taxation years will be applied by the CRA and the Alberta government only when a bill confirming this measure will be tabled. For more information, consult the note relating to this subject.

Update of Form T106 Summary (Jump Code: 106S) and T106 Slip (Jump Code: 106)

The most recent versions of Form T106 Summary and T106 Slip have been added to Corporate Taxprep. These versions must be completed when the corporation taxation year begins after 2021. For more information, consult the note relating to this subject.

Electronic transmission of Form MR-69 (Jump Code: MR69)

Form MR-69 can now be electronically filed with this version of Corporate Taxprep. For more information, consult the note relating to this subject.

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Québec

MR-69, Authorization to Communicate Information or Power of Attorney (Jump code : MR69)

The electronic transmission of the MR-69 form is now available. As opposed to the federal authorization transmission, which does not require proof of signature with the electronic transmission, Revenu Québec requires that a PDF of all four pages of the signed Form MR-69 be transmitted along with the authorization request. In the case of an electronically signed document, five pages are allowed.

In addition, when the signing officer is not one of the executive officers (e.g., president, vice president, secretary or treasurer), Revenu Québec will require documentation to substantiate the authority of the signatory to provide authorization. In that case, an additional document should also be attached to the client file for transmission with the MR-69. As Revenu Québec will only accept a single supporting document in addition to the signed MR-69, all supporting documents should be merged into a single PDF, JPEG or TIFF file.

A maximum of two documents can be attached to the client file and filed with the transmission.

A 2-step checklist has been added to the form to help you prepare and electronically transmit an MR-69 form. By providing an answer to all statements in the checklist, you are making sure that the mandate is compliant and meets the requirements of Revenu Québec. This will prevent you from being prompted by an error code at the time of transmission.

The first step helps you complete the form correctly before printing it, so that the printed copy meets the requirements of Revenu Québec and contains a 2D bar code when the copy is signed by the taxpayer or representative.

The second step covers the requirements that should be complied with to be able to electronically transmit the mandate and the attached document(s).

The electronic status will be displayed at the end of the checklist. When the status is Eligible, you can transmit the MR-69 form and the attached documents.

In addition, the Date of signature locked check box has been added to section 5. When this check box is selected, the date in the Signature section is locked. This mechanism ensures that the signature date that is transmitted electronically is the same as the date that is printed on Form MR-69.

For more information on the checklist, consult the help topic on the MR-69 form.

Preparer profiles

Authorization Forms tab

The Electronic filing subsection has been added to the MR-69 – Authorization to communicate information or power of attorney section. This new subsection allows you to select electronic filing for all applicable MR-69 forms.

Please note that the box in that subsection will be checked by default if you create a new preparer profile or if you convert an existing profile.

EFILE Information (Jump Code: EFILE INFO)

An MR-69 section was added to the form. You will find key information regarding the electronic filing of every MR-69 form (Jump Code: MR69) for the active corporation. The transaction history information and the required information to correct the form for e-filing purposes, in the event the form is rejected, will be displayed on the copy of the MR-69 form, as applicable.

Client filters

MR-69 EFILE Eligible

An MR-69 EFILE Eligible filter has been created to allow you to generate a list of all clients for whom the MR-69 form can be transmitted electronically. To transmit several MR-69 forms at once, go to the Client Manager, click the filter icon on the menu bar and select the MR-69 EFILE Eligible filter. This will provide you with a list of all clients whose MR-69 form is applicable and selected for electronic transmission.

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New Forms

Federal

Schedule 59, Information Return for Non-Qualified Securities (Jump Code: 59)

Use this schedule if the filing corporation is an employer to report, as required under subsection 110(1.9), that a security to be issued or sold under an employee security option agreement between your employee and a qualifying person is a non-qualified security. You must file this schedule on or before the filing due date for the tax year of the particular qualifying person (which may be a person other than the employer) that includes the day on which the agreement is entered into.

Above the Non-qualified securities reporting section, the custom question which is on the screen only, If you must file the information return for non-qualified securities under subsection 110(1.9) ITA, do you have to file it with the filing corporation’s T2 return?, has been added, and when you answer Yes to this question, the schedule will be applicable; it will be filed with the T2 return and box 274 of Schedule 200 (Jump Code: J) will be checked. For corporations that have a permanent establishment in Quebec, Schedule 59 will also be printed in the Québec corporation income tax return. If you must file this schedule before the filing due date of the filing corporation, answer No and print the schedule by using Ctrl+P shortcut keys. For corporations that have a permanent establishment in Québec, you must print a copy for the Canada Revenue Agency and a copy for Revenu Québec. When you answer No, this schedule will not be filed with the T2 return, but box 274 of Schedule 200 will still be activated.

The custom question, Do you want to roll forward the data in column 1?, has also been added. When you answer Yes to this question, the names of the employees will be kept on the following year’s tax return.

Schedule 63, Return of Fuel Charge Proceeds to Farmers Tax Credit (Jump Code: 63)

To claim this refundable tax credit for a taxation year ending in 2021 or 2022, you must use this schedule if the corporation operates a farming business in one of the following designated provinces: Ontario, Manitoba, Saskatchewan or Alberta. To benefit from this tax credit, the total of farming expenses minus mandatory inventory adjustments, optional inventory adjustments and non-arm's length transactions must be equal or superior to $25,000 in Part 1. You must make sure that the amounts calculated on lines 1B, Mandatory inventory adjustments, and 1C, Optional inventory adjustments, are solely related to section 28 of the Income Tax Act. Please override these lines if necessary.

In the case of a corporation that has a permanent establishment in more than one jurisdiction, the total of eligible farming expenses of line 100 will be allocated to each designated province based on the relevant proportion under which taxable income is allocated under Part IV of the Income Tax Regulations, in part 2 to 5. Then, in part 6, eligible farming expenses allocated to the designated province(s) will be multiplied by the payment rate for the calendar year. The payment rate for the 2021 calendar year is 0.147%, and the payment rate for the 2022 calendar year is 0.173%. In a taxation year that straddles the 2021 and 2022 calendar years, a calculation will be done for the 2021 year and another for the 2022 year, relative to the number of days in the taxation year in each calendar year. Afterwards, the amount of line 395, Return of fuel charge proceeds to farmers tax credit for all designated provinces, will be carried to line 495, Total return of fuel charge proceeds to farmers tax credit, of Part 7. If there is an amount on line 495, the schedule will be applicable and that amount will be carried to line 795, Return of fuel charge proceeds to farmers tax credit, of Schedule 200 (Jump Code: J). In addition, when Schedule 63 is applicable, box 273 of Schedule 200 will be activated.

When the corporation is a member of a partnership, enter the amount of box 237 from each T5013 slip to lines 400 to 430, according to the province.

 

Québec

Capital cost allowance for immediate expensing property (Jump Code: Q8AD)

Following discussions with Revenu Québec, with respect to their treatment of immediate expensing, this custom form has been added to allow you to enter the designated immediate expensing property (Part 2) and to calculate the amount that is deducted for immediate expensing (Part 3) for a taxation year.

When, for a CCA class entered in Schedule 8 WORKCHART (Jump Code: 8 WORKCHART), a property is entered in Schedule 8 WORKCHART ADD (Jump Code: 8 WORKCHART ADD) where the answer to the question Is the property a designated immediate expensing property (DIEP)? is Yes, a line is automatically created in Part 2. Otherwise, when an amount is entered directly on line Cost of additions for designated immediate expensing property (DIEP) included in the amount on line 203, a line will also be created with the CCA class number in column D and the capital cost in column E, and you will need to complete the other columns for that line and/or create other lines using the Add button if more than one property is included in the capital cost.

The table in Part 3 will fill with the data entered in the corresponding lines in Schedule 8 WORKCHART when there is an amount on the line Cost of additions for designated immediate expensing property (DIEP) included in the amount on line 203 under column Québec.

The form becomes applicable when there is an amount under column E, Capital cost, in the table of Part 2. In accordance with our discussions with Revenu Québec, the form is printed when applicable.

 

Nova Scotia

Schedule 351, Additional Certificate Numbers for the Nova Scotia Capital Investment Tax Credit (Jump Code: 351)

This form is used to enter the additional certificate numbers for the Nova Scotia capital investment tax credit.

When opening a client file prepared with a prior version of Corporate Taxprep, if a certificate number had been entered on line 841 of Schedule 5 (Jump Code: 5), this number will be retained on the first line of column 100 in Schedule 351, and the amount of the tax credit entered on line 568 of Schedule 5 will be retained on the first line of column 200 in Schedule 351. If no certificate number had been indicated on line 841 of Schedule 5, the amount of the tax credit entered on line 568 of Schedule 5 will be retained as an overridden amount. You will then have to complete Schedule 351 and cancel the override on line 568 of Schedule 5 in order for the credit calculated in Schedule 351 to update to Schedule 5.

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Deleted Forms

New Brunswick

• Schedule 365, Additional Certificate Numbers for the New Brunswick Film Tax Credit (Jump Code: 365)

Nova Scotia

• Schedule 345, Additional Certificate Numbers for the Nova Scotia Film Industry Tax Credit (Jump Code: 345)

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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

Note:
The Auditing and Assurance Standards Board (AASB) has issued a new Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements. Under CSRS 4200, the use of disclaimers on any schedule of the tax return may no longer be appropriate, and a notice to reader is no longer considered an appropriate form of communication. Diagnostics have been added to inform you of this situation when you choose to use the disclaimers or the Notice to Reader letter template. These two elements will be removed from the next version of the program, which is scheduled to be released at the end of November 2022.

Update of the NAICS list of codes for 2022

Note that the list of NAICS codes underwent certain changes for 2022. This list is used in Form Identification, Corporate Identification and Other Information (Jump Code: ID), in the data entry screen of the T106 slip (Jump Code: 106), in Form T106 Summary, Information Return of Non-arm’s Length Transactions with Non-Residents (Jump Code: 106S) and in Form T1134, Information Return Relating to Controlled and Non-Controlled Foreign Affiliates (Jump Code: 1134).

For details on these changes, consult the help topics related to the forms and slips concerned. When opening a client file prepared with a previous version of Corporate Taxprep or when rolling forward client files, the codes that were entered, but that have since been removed from the list will be replaced by an equivalent code or will not be retained.

Corporate Identification and Other Information (Jump Code: ID)

Part Direct deposit request has been removed because it will not be possible to file this request with a T2 effective May 16, 2022. For information on how to enrol for direct deposit, go to canada.ca/cra-direct-deposit.

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

Lines 273 to 275 have been added under Part Attachments to indicate that Schedules 63, 59 and 65 respectively are filed with the T2 return. Also, under Part Summary of tax and credits, lines 795, Return of fuel charge proceeds to farmers tax credit, and 799, Air quality improvement tax credit, have been added. However, note that at the time of the program’s release, the CRA had not published Schedule 65 that is used to calculate the air quality improvement tax credit.

Finally, Part Direct deposit request as well as lines 910, 914 and 918 have been removed because it will not be possible to file this request with a T2 return after May 16, 2022. For information on how to enrol for direct deposit, go to canada.ca/cra-direct-deposit.

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

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

The following lines have been removed from the schedule:

• line 565, Nova Scotia film industry tax credit;
• line 836, Certificate number (from Schedule 345);
• line 595, New Brunswick film tax credit; and
• line 850, Certificate number (from Schedule 365).

The custom British Columbia political contribution – senate nominee elections tax credit field has also been removed because this tax credit was announced in the British Columbia Bill 17 in 2013 which did not receive Royal Assent.

In addition, the amount on line 568 is now calculated based on the amount on line 300 from the new Schedule 351 (Jump Code: 351). When opening a client file prepared with a prior version of Corporate Taxprep, if an amount was entered on line 568 of Schedule 5 and no certificate number was indicated on line 841, the amount on line 568 will be retained as an overridden amount. You will then have to complete Schedule 351 and cancel the override on line 568 of Schedule 5 in order for the credit calculated in Schedule 351 to update to Schedule 5.

Schedule 6, Summary of Dispositions of Capital Property (Jump Code: 6)*

Schedule 7, Aggregate Investment Income and Income Eligible for the Small Business Deduction (Jump Code: 7)*

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

Following the announcement of the federal and provincial government authorities concerning the acceptance of returns that are considering the immediate expensing measure, the following custom elements have been added on screen only:

• The Immediate expensing 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 must be Yes for the program to perform the calculations related to the immediate expensing measure.
• The custom table Allocating the immediate expensing limit among associated eligible persons and partnerships. This table allows you to allocate the limit between the eligible corporations, individuals, and partnerships that are part of an associated group. Note that the Add and Delete buttons allow you to manage the lines for associated individuals and partnerships. To add an associated eligible corporation, use Schedule 9 WORKCHART (Jump Code: 9 WORKCHART).
• 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 Alberta’s AT1 Schedule 13 (Jump Code: A13).

Note that the CRA will update Schedule 8 in the coming months to include the immediate expensing calculations. Until then, the amount claimed for immediate expensing has been added to line 217.

Also note that the CRA has informed us that adjustment requests for returns to take into account the immediate expensing measure will be processed only when Bill C-19 receives Royal Assent.

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

Following the announcement of the federal and provincial government authorities concerning the acceptance of returns that are considering the immediate expensing measure, the calculations for this measure have been integrated and the following lines have been added:

• Adjustments relating to DIEP included on line 205
• Cost of additions for designated immediate expensing property (DIEP) included in the amount on line 203
• Proceeds of disposition of DIEP included on line 207
• DIEP UCC
• Immediate expensing
• Cost of acquisitions for property other than DIEP
• Cost of acquisitions that are AIIP and ZEV (other than DIEP)
• Remaining UCC

Also, the questions Is the property a designated immediate expensing property (DIEP) for the taxation year?, Was the property a DIEP in a prior taxation year? as well as the line Proceeds of disposition (Immediate expensing property (IEP) only) have been added to Part CCA class 10.1.

The question Is one of the properties acquired in the taxation year a designated immediate expensing property (DIEP)? has been added to CCA class 14.

A property must be designated as a DIEP no later than the day of the twelfth month after the corporation’s filing due date for the taxation year to which the designation relates. The amount entered on line Immediate expensing has been added to both lines Maximum allowable CCA and line 217, CCA claimed.

Finally, the Department of Finance Canada announced on December 23, 2021, that the CCA ceiling for passenger vehicles is increasing from $30,000 to $34,000 (before taxes), and the ceiling for zero-emission passenger vehicles is increasing from $55,000 to $59,000 in respect of vehicles acquired after December 31, 2021. However, the CRA informed us that these increased ceilings would only be considered once a bill confirming this increase is tabled. At the date of publication of the program, a bill had still not been tabled.

For Québec income tax purposes, Revenu Québec has confirmed that both ceilings are officially increasing to $34,000 and $59,000 respectively for vehicles acquired after December 31, 2021. The amount of $34,000 will therefore be used in the calculations of the Québec column for CCA class 10.1 when the acquisition date entered is after December 31, 2021.

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

The question Is the property a designated immediate expensing property (DIEP)? has been added. When the answer to this question is Yes, the adjusted capital cost is added to the line Cost of additions for designated immediate expensing property (DIEP) included in the amount on line 203 in Schedule 8 WORKCHART (Jump Code: 8 WORKCHART).

For the calculations of the original capital cost of zero-emission passenger vehicles in a CCA class 54 in Part Information relating to zero-emission vehicles, specific lines for Québec and Alberta have been added. The amount of $59,000 will be used in the calculations of the line Original capital cost for Québec line when the acquisition date entered is after December 31, 2021. This amount will then be taken into consideration in the calculation of the Adjusted capital cost before partial dispositions – Québec line in Part Addition.

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

To complete the custom table Allocating the immediate expensing limit among associated eligible persons and partnerships for associated corporations 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 the custom table 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 the custom table of Schedule 8.

In addition, the Québec CO-130.AD – Capital cost allowance for immediate expensing property and Alberta AT1 Schedule 13 – Capital cost allowance (CCA) sections have been added. The amount indicated in the field Limit allocated is equal to the corresponding field in the Schedule 8 – Capital cost allowance (CCA) section.

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

Part 2 Saskatchewan has been removed. This section applied to taxation years that had days before the year 2020. It is no longer possible to enter such taxation years in this version of Corporate Taxprep.

Line Number of days in the tax year in 2019 has been removed from Part 3 Manitoba. 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.

Schedule 31, Investment Tax Credit - Corporations (Jump Code: 31)*

Schedule 42, Calculation of Unused Part l Tax Credit (Jump Code: 42)*

Schedule 58, Canadian Journalism Labour Tax Credit (Jump Code: 58)*

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

Schedule 91, Information Concerning Claims for Treaty-Based Exemptions (Jump Code: 91)*

Schedule 97, Additional Information on Non-Resident Corporations in Canada (Jump Code: 97)*

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

In Part 1, the line 111 Were financial statements prepared? has been added.

In Part 2, the option Other has been added to line 198.

Additionally, Part 5 – Information on the person who prepared the information return has been added. Line 110 has been moved to this new part.

Automobile Expenses – Non-Deductible Leasing Costs and Other Expenses (Jump Code: AUTO LEASE)

The Department of Finance Canada announced on December 23, 2021, that the limit relating to the acquisition cost of an automobile will increase from $30,000 to $34,000 and that the limit for monthly deductible leasing costs will increase from $800 to $900 in respect of leasing contracts beginning after December 31, 2021. However, the Canada Revenue Agency informed us that these two new limits would only be considered once a bill confirming these increases is tabled. At the date of publication of the program, a bill had still not been tabled.

For Québec income tax purposes, Revenu Québec has confirmed that both limits are officially increasing to $34,000 and $900 respectively for leasing contracts beginning after December 31, 2021. To correctly calculate the amount of non-allowable expenses related to automobile leasing on line 37 of Form CO-17.A.1, Net Income for Income Tax Purposes (Jump Code: Q1), specific Québec lines have been added to calculate deductible and non-deductible leasing costs using the increased limits when the acquisition date entered is after December 31, 2021.

RSI, Electronic Filing and Bar Codes Control Workchart (Jump Code: RSI-EFILE-BAR CODES)

Following the proposed modifications to subsection 205.1(2) of the Income Tax Regulations, the answer to the question Must this return be electronically filed with the CRA in pursuance of subsection 150.1(2.1) ITA? will be calculated to Yes when a Canadian corporation is filing an initial T2 return for a taxation year starting after 2021 and the corporation is not an insurance corporation, not reporting in functional currency, not exempt from tax under section 149 ITA, or has not indicated making an application under the Canada Revenue Agency’s (CRA) Voluntary Disclosures Program for this tax return.

Also note that, starting with the 2022 calendar year, a person (or a partnership) is deemed to be a tax preparer for a calendar year if, in the year, it accepts consideration to prepare more than five returns of income (instead of the previous ten) of corporations, more than five returns of income (instead of the previous ten) of individuals, or more than five returns of income of estates or trusts. However, for the 2022 calendar year, the CRA will not assess the penalty when the tax preparer exceeds the five returns threshold without surpassing the old threshold of ten returns as well as without considering the returns of income of estates or trusts that are paper filed.

Client Letter, Filing Instructions (Jump Code: CLF)

The new proposed subsection 160.5(2) ITA makes it mandatory for an income tax payment or instalment remittances over $10,000 to be made by electronic means, either through a financial institution, the CRA’s My Payment service, with a pre-authorized debit agreement set up through the CRA’s My Business Account service or via wire transfer.

The paragraphs under the Payment section for a T2 return have been modified accordingly.

Inducement, Inducement Calculation Workchart (Jump Code: INDUCEMENT)

The following lines have been added to the Tax credits whose amount should be added to income section:

• Return of fuel charge proceeds to farmers tax credit
• Air quality improvement tax credit

In addition, in the Tax credits whose amount should be added to income – Nova Scotia section, the following field has been removed:

• Nova Scotia film industry tax credit

T106 Slip (Jump Code: 106)*

T106 Summary, Information Return of Non-Arm's Length Transactions with Non-Residents (Jump Code: 106S)*

A new version of Form T106 for taxation years starting after 2021 has been integrated into the program and only displays when the taxation year covered by the return starts after 2021. For taxation years starting prior to 2022, the previous version of the form must be used.

In the version of the form that applies for taxation years starting after 2021, new fields have been added in the T106 Slip:

• The field Taxpayer Identification Number (TIN) has been added at the beginning of Part II;
• In Part IV, a line has been added to indicate the information regarding an investment in the reporting entity by the non-resident;
• At the end of Part IV, new fields allow you to indicate if a Pertinent Loan or Indebtedness (PLOI) election was made and, if applicable, the amount of deemed interest related to the election.

In addition, for taxation years starting after 2021, when a reporting person’s total amount of transactions with a non-resident during the taxation year is below $100,000, it is not required to report these transactions in Part III of the T106 Slip. For taxation years starting prior to 2022, the threshold remains at $25,000.

Finally, it is no longer possible to enter a negative value in all the fields of Parts IV, V and IV of the T106 Slip. When opening a client file prepared with a prior version of Corporate Taxprep, if a negative value was entered in one of these parts, it will not be retained. The ending balances calculated in Parts IV and VI will also be recalculated to disregard negative values, which will affect the amounts rolled forward as beginning balances.

T106L, List of non-residents (Jump Code: 106L)

Following the update of Form T106, a new column has been added to the table in order to display the amount of investment in the reporting entity by the non-resident. Note that this new column only applies for taxation years starting after 2021.

T217, Election or Revocation of an Election to use the Mark-to-Market Method (Jump Code: 217)*

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

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

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 SIN # field has been removed.
• In the Production (Crop) Insurance (PI) Information section, the fields What name is listed on your Production (Crop) Insurance Agreement? and If you have been previously enrolled under another Name or PI#, please indicate Name or PI# have been added.
• In the Shareholder Information section, the Social Insurance Number field has been removed.
• In the Partnership Information section, the Social Insurance Number field has been removed.

 

Ontario

Schedule 502, Ontario Tax Credit for Manufacturing and Processing (Jump Code: 502)*

Fields 1A and 1C become lines 030 and 040 that are now part of the lines in the electronic data transmission or in the bar codes transmitted to the CRA.

Schedule 564, Ontario Book Publishing Tax Credit (Jump Code: 564)*

Schedule 568, Ontario Business-Research Institute Tax Credit (Jump Code: 568)*

 

Québec 

Note:
In version 2021 2.0, as specified in Guide IN-417.A, the Government of Québec had asked us to add a diagnostic to prompt you to attach complete financial statements to the income tax returns of all corporations. Revenu Québec has decided to remove the reference asking you to attach the financial statements and the notes relating to the financial statements from Guide IN-417.A. Following the update of this guide and at the request of Revenu Québec, we removed this diagnostic from the program.

CO-17.R, Request for an Adjustment to a Corporation Income Tax Return or to an Information and Income Tax Return for Non-Profit Corporations (Jump Code: QJR)

Revenu Québec recommends attaching Form CO-17.R to amended returns. In this regard, the Print this form box has been added to the form to indicate whether you wish to attach this form to the amended return. A diagnostic has been added in case more than one form is selected to be printed with a return that is already in progress.

When opening a client file prepared with a prior version of Corporate Taxprep, if Form CO-17.R has been completed, the Print this form box will be checked.

CO-737.18.CI, Deduction Relating to the Commercialization of Innovations in Québec (Jump Code: 73718CI)*

As a result of the update of the form, lines 57a and 57b in section 3.1.4 have been removed.

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

The following modifications have been made to the geographical codes of line 14a.1:

• The municipality name associated with code 78047, which was Saint-Faustin-Lac-Carré, is now Mont-Blanc.
• Code 82010 associated with the municipality Notre-Dame-de-la-Salette is now code 80087.
• The municipality name associated with code 14045, which was Saint-Germain, is now Saint-Germain-de-Kamouraska.
• Code 4020 associated with the municipality Mont-Alexandre is now code 02902.
• Every code that had four digits now have five digits because the digit 0 has been added to the beginning of the codes.

FM-220.3, Property Tax Refund for Forest Producers (Jump Code: FM2203)*

For a taxation year ending after December 31, 2021, the reimbursement of property taxes for forest producers will be allowed regardless of whether eligible forest development expenses are less than the property taxes of a unit, and the reimbursement of property taxes will no longer be calculated unit per unit. The reimbursement will now be equal to the lesser amount between eligible development expenses for the year and the total of the amount of property taxes paid for all property assessment units of the owner. For this purpose, Part 3.1 must be used for a taxation year ending before January 1, 2022, and Part 3.2 must be used for a taxation year ending after December 31, 2021.

In addition, for a taxation year ending after December 31, 2021, the eligible development expenses incurred in the year cannot be carried forward if the amount of such expenses is less than the amount of property taxes paid during the same period. Consequently, the Summary and analysis for the development work expenses carried forward table has been adjusted.

When opening a client file prepared with a prior version of Corporate Taxprep, for a taxation year ending after December 31, 2021:

• If the Property taxes line(s) have been overridden, the addition of those lines will be retained by an override at line 44;
• Finally, if line 40 has been overridden, the data will be retained by an override on line 46.

 

Alberta

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

Line 064, Deduct: Royalty Tax Deduction (Schedule 5, line 021), has been removed.

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

Line 092, Income exempt under ITA paragraph 149(1)(t), has been removed.

 

Saskatchewan

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

The subsection relating to the additional deduction for credit unions has been removed. This subsection applied to taxation years that had days before the year 2020. It is no longer possible to enter such taxation years in this version of Corporate Taxprep.

 

Manitoba

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

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

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

 

Yukon

Schedule 444, Yukon Business Carbon Price Rebate (Jump Code: 444)*

The calculation of line 500 of Part 3 as well as the note 6 have been updated, for a tax year ending after March 31, 2022, to take into account the new business rebate factor of $39.62 for each $1000 of eligible Yukon undepreciated capital cost (UCC).

In addition, class 56 has been added to paragraph 5(c) of the Carbon Price Rebate General Regulation and applies to taxation years ending after 2021. When this class is selected at line 200, the prescribed inclusion rate at line 205 is 500%.

 

Nunavut

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

The lines relating to the number of days in the taxation year before July 1, 2019, have been removed from the schedule. When opening a client file prepared with a prior version of Corporate Taxprep, if an amount was entered on one of those lines, it will not be retained.

 

Newfoundland and Labrador

Schedule 305, Newfoundland and Labrador Capital Tax on Financial Institutions (Jump Code: 305)*

 

Prince Edward Island

Schedule 321, Prince Edward Island Corporate Investment Tax Credit (Jump Code: 321)*

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

Line 2 relating to the number of days in the taxation year before January 1, 2020, has been removed from the schedule. 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.

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Technical Information

Technical Changes

Electronic transmission of Form MR-69 and supporting documents accompanying the latter

Revenu Québec allows preparers to use the NetFile Québec service to electronically transmit Form MR-69 as well as the supporting documents accompanying the latter.

Here are a few important points:

• The electronic transmission of MR-69 data must always be accompanied by a signed PDF copy of Form MR-69.
• Supporting documents (if any) must be combined into a single file that is separate from the signed PDF copy of Form MR-69.
• Only the following file types are accepted for the transmission of supporting documents: .pdf, .jpg and .tiff.
• The file size cannot exceed 25 MB.
• The file name cannot contain spaces nor any of the following characters:
  • âêôûÄéÆÇàèÊùÌÍÎÏÐîÒÓÔÕÖ×ØÙÚÛÜÝÞßáãäåæçëìíïðñòóõö÷øúüýþÿ^~$°'|!#%&'`{}[]¤¨`:;,><@€£¬=²³?«»+ÀÁÂÃÅÈÉËÑ
    Note: You can modify the syntax of the name of printed PDF files from Taxprep in the PDF Files pane of the Print section in the Options and Settings dialog box.
• You must enter your NetFile Québec credentials in the NetFile Québec tab of the Identification pane under the Electronic Services section of the Options and Settings dialog box.

The Attached files properties dialog box, which automatically displays when you attach a file, allows you to select the form to which you want to attach a supporting document. When you select option MR-69, you must select the type of document that you want to transmit, meaning the reason why the document is supporting the form. The Copies field allows you to select the copy of Form MR-69 with which you want to associate the attached document. Finally, the EFILE Status field allows you to follow up on the transmission of attached document.

To transmit Form MR-69 as well as the attached documents associated with it, click Transmit on the Transmission menu, select the EFILE Number option, then activate the MR-69 check box in the Transmit dialog box. In addition, if you do not want to transmit all eligible copies associated with Form MR-69, click the drop-down list in the Copies column, and clear the check box for the copies that you do not want to transmit.

When the EFILE status of Form MR-69 is Eligible, the box is automatically selected in the Transmit dialog box.

For more information on the types of documents that can be transmitted, the EFILE statuses and the procedure to follow to transmit Form MR-69 with supporting documents, consult the Help.

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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 2022 v.1.1.

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 2022 1.0:

Québec

• CO-737.18.CI – The amounts entered on lines 48, 51a and 56 and the percentage on line 57b might be incorrect in certain situations

• FM-220.3 – The amount indicated on line 40 is incorrect when the amount on line 25 is less than the total of the amounts on lines 64 for a taxation year ending after December 31, 2021

EFILE

• Linked supporting documents might be deleted from their original location when using the CO-17 EFILE service

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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.

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.

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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://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).

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

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