Release Notes
Our Support Centres are Going Digital: Emails are Now Our First Priority
As part of our transformation to digital support centres, we are pleased to announce that email inquiries will now be given first priority. This digital shift will allow us to process your requests even faster, and better meet your needs.
From now on, use emails instead of telephone to contact Customer Service and the Support Centre by including your account number and the name of your product in the subject line as well as detailed information in your email (form/line/diagnostic number, print screens, etc.) to get accelerated service!
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.
About
We are pleased to provide you with Taxprep for Trusts 2023 v.3.0. This version covers taxation years ending between January 1, 2022, and December 31, 2023, inclusive.
Note that client files have an extension reflecting the taxation year end of the trust: .322 for a taxation year ending in 2022 and .323 for a taxation year ending in 2023.
The rates applicable to the 2023 taxation year are those known as of February 20, 2023. Any changes resulting from subsequent federal, provincial and territorial announcements will be integrated into future updates of the program.
You can view the applicable rates by accessing the Table of Values Used in the Return found in the program (Jump Code: RATES FED-PROV).
Converting Preparer Profiles
Once your preparer profiles from last year are converted to the current year, it is important to verify that the options defined with respect to the returns of your clients and to the electronic filing of data (EFILE) still correspond to your situation for the current season.
For more information on rolling forward client files, please consult the Help.
Electronic Filing
Government requirements
At the federal level and in Québec, any filer filing more than 50 slips or RL slips of a same type must file the data electronically by Internet. Below that threshold, paper filing is accepted.
Taxprep for Trusts will generate a diagnostic prompting you to use EFILE as soon as you prepare more than 50 slips or RL slips.
Budget 2021 announced that the threshold for mandatory electronic filing of income tax information returns for a calendar year would be lowered from 50 to 5 information returns.
The legislation for this measure was not finalized at the time of publication. For the latest information about the penalty for not filing information returns over the Internet, go to Penalty for failure to file information returns over the Internet.
Important dates for Internet transmission
The CRA has been accepting electronic transmissions of T3 and NR4 slips since January 9, 2023. Revenu Québec has been accepting transmission of RL-16 slips since November 2022.
The CRA has been offering electronic filing of T3 returns through T3 EFILE since March 2, 2022. The CRA accepts the EFILING of T3 returns for the tax years 2022 and 2023 since February 20, 2023, and the system will close next year on January 26, 2024. For more information on this matter, please see the Federal – T3 EFILE article.
Opening and Rolling Forward Files
Client files with the .322 extension
Client files with the .322 extension that have been saved with Taxprep for Trusts 2022 can be opened with Taxprep for Trusts 2023 without having been rolled forward first. When opening that file, a dialog box displays and asks you if you want to recalculate the file with the current version. By answering yes, you can simply continue working in the file. If you answer no, the data in the file will be locked. It can be unlocked at a later date using the Properties dialog box (File/Properties command).
Client files with the .321 extension
Client files with the .321 extension that have been saved with the 2021 or 2022 version of the program must be rolled forward by using the Roll Forward command in the File menu before you can access them from this version. Remember that in cases where client files were saved with the 2021 version, the roll forward is only possible if the taxation year in the source client file ends in 2021.
Taxprep for Trusts 2023 also allows you to open, without having been rolled forward first, a client file with the .321 extension. However, the file will only be read-only accessible. To open a client file with the .321 extension, access the Open dialog box (File/Open command), and select the directory where the client file has been saved using the Look in: drop-down list. Then, enter “*.*” in the “File name:” box and press Enter to display the list of client files. You can then select and open the client file you want to access.
Taxation year after roll forward
The taxation year after a roll forward cannot end after December 31, 2023. If needed, it will be shortened so as to correspond to the period covered by this version.
Attached notes
The attached notes are rolled forward, except if this option is cleared in the roll forward data options.
Rolling forward client files prepared with ProFile
Taxprep for Trusts 2023 allows for the roll forward of client files saved with version 2022.0 of ProFile (.20R extension).
Version 3.0 Content
Form Added to the Program
T2043, Return of Fuel Charge Proceeds to Farmers Tax Credit (Jump Code: 2043)
In 2021, the Government of Canada introduced a refundable tax credit, i.e., the Return of Fuel Charge Proceeds to Farmers Tax Credit. This credit is intended to return a portion of the fuel charge proceeds from the federal carbon pollution pricing system directly to farming businesses in provinces that do not currently meet the federal stringency requirements.
These designated provinces are Ontario, Manitoba, Saskatchewan and Alberta. Eligible farming businesses include self-employed farmers, partnerships and partners in farming partnerships that actively engage in either the management or the daily activities related to the earning of income from farming and that incur total farming expenses of $25,000 or more, which are all or partially allocated to designated provinces.
As a result, Form T2043 has been added to the program to calculate the return of fuel charge proceeds to farmers tax credit. In addition, Form T2043 WS has been added to facilitate the calculations in the various parts of Form 2043. The worksheets will be automatically linked to T2042 statements. Form T2043 cumulates all T2043 WS worksheets. Note that this refundable tax credit is claimed on line 920 of the T3 return.
The credit is considered government assistance received during the year and is taxable. It should be included in the return of the taxation year in which it was claimed, not in the year in which it is received. This refundable tax credit is automatically included in income on line 9600 of Form T2042.
In addition, if the trust is a member of a partnership, the credit will be prorated in Form T2043 and considered as part of the partner’s income. The amounts of the credits received by the partner will be found in box 237 of the T5013 slip and/or in a letter provided by the partnership. These amounts should be entered in Part 5, Total return of fuel charge proceeds to farmers tax credit.
Modifications
AUT-01, Authorize a Representative for Offline Access (Jump Code: AUT01); and
AUT-01X, Cancel Authorization for a Representative (Jump Code: AUT01X)
New boxes have been added to Step 1, Account information, to enter another CRA identifier and type if you identified a non-resident account number. In addition, if you are making a request for a non-resident account, the forms will now have to be sent to the Sudbury Tax Centre regardless of the province of residence or the language used to file the forms.
Client Letter Worksheet (Jump Code: LW); and
TX19, Asking for a Clearance Certificate (Jump Code: TX19)
The Client Letter Worksheet has been enhanced to include an additional section showing the different mailing addresses for Form TX19. Customer letters have been modified to take into account the area code entered in Form TX19. It is still possible to exclude a mailing address from the client letters, and this choice can now be made for all tax returns, using a new line to that end in the Client Letter tab of the tax preparer’s profile.
T3-DD, Direct Deposit Request for T3 (Jump Code: T3DD)
The list of banking institution numbers has been updated and several changes have been made. If a withdrawn code has been entered in box 351 of the form, it will be deleted. In all circumstances, it is advisable to validate the banking information before filing this form.
T776, Statement of Real Estate Rentals (Jump Code: 776)
T2042, Statement of Farming Activities (Jump Codes: 2042/Q2042)
T2125, Statement of Business or Professional Activities (Jump Code: 2125)
Area A – Calculation of capital cost allowance (CCA) claim has been updated in the Statement of Business forms. While the columns of the CCA charts and the relevant instructions have been added and can be printed, they do not contain any new calculations, as they are used exclusively for immediate expensing, which doesn't apply to trusts.
TP-646.R, Request for an Adjustment to a Trust Income Tax Return (Jump Code: QTP646.R)
Following an update to the form, the trust account number and a third option with respect to the filing of Form MR-69, Authorization to Communicate Information or Power of Attorney (Jump Code: Q69), have been added to section 1, Information about the trust.
Version 2.0 Content
Modifications
Trust Identification and Other Information (Jump Code: ID)
Trust codes 308 to 310, 312 and 902 have been temporarily removed as per the 2022 update of the T4013 Trust Guide. As a result, we have added “do not use” to the end of these codes.
TP-1129.53, Income Tax Return for Environmental Trusts (Jump Code: Q1129.53)
The form was updated and now contains a fourth section in which you can enter the identity of the settlors, trustees, beneficiaries and persons who can exert control over the trustee’s decisions. Take note that Revenu Québec does not require the completion of this additional section for tax years ending before December 31, 2023.
NAICS codes
The CRA has released an update to the NAICS. The codes have been converted in the program when applicable. Please verify that the NAICS codes on the various forms and returns are still accurate.
Version 1.0 Content
Modifications
ID, Trust Identification and Other Information (Jump Code: ID)
A validation message has been added to the Federal Account Number field. If an incorrect trust account number is entered, a pop-up message will prompt you to enter a valid one. If you agree to keep the wrong trust account number in the Account Number field of the Trust Identification and Other Information form, a diagnostic will attach to the cell telling you that the number is invalid and preventing you from being eligible to T3 EFILE.
Donations, Summary of charitable donations (Jump Codes: DONATIONS); and
QC Donations, Summary of charitable donations (Jump Code: QDONS)
A separate table has been added to track ecological gifts made after February 10, 2014 that can be carried over for a period of 10 years.
LM-58.1.2, Application for a Trust Identification Number (Jump Code: QLM58.1.2)
The temporary exemption which allowed new trusts to omit the identification number from the Trust Income Tax Return (TP-646) and the RL-16 slips is no longer in effect. As a result, Form LM-58.1.2, which allows for the application of an identification number, has been added to the program.
RL-16 slip, Trust Income (Jump Code: QR16)
The temporary exemption which allowed new trusts to omit the identification number from the RL-16 slips is no longer in effect. As a result, the option provided for this purpose on the Identification form (Jump Code: ID) has been removed. The identification number must therefore be obtained prior to the production of the RL-16 slips. If the trust has a federal account number, it must be included on the RL-16 slips. However, you do not have to enter the trust’s federal account number if it has not yet been assigned. Note that these numbers will be hidden on copy 2 of the slip, as required by Revenu Québec.
In its Guide to Filing the RL-16 Slip, Revenu Québec has provided clarification regarding the consolidated RL-16 slips. A consolidated RL-16 can be issued when the income of several trusts can be combined on one slip for a single beneficiary. Since a Taxprep for Trusts file must be created for each trust, this cannot be done with our program. Therefore, we have removed the question Is this a consolidated RL-16 slip?.
T3, Trust Income Tax and Information Return (Jump Code: J)
As a result of an update, several refundable tax credits have been added to Step 5, Summary of tax and credits.
T3 APP, Application for Trust Account Number (Jump Code: T3APP)
Step 5, Representative contact information, has been removed from the form. Therefore, if you want to authorize a representative, please complete Form AUT-01, Authorize a Representative for Offline Access (Jump Code: AUT01).
T3BC, British Columbia Tax (Jump Code: T3BC); and
T3BCMJ, Provincial Tax (Multiple Jurisdictions) – British Columbia Tax (Jump Code: MJ BC)
The line British Columbia T3M tax credit has been added to these forms.
T3M, Environmental Trust Income Tax Return (Jump Code: T3M); and
T3S, Supplementary Unemployment Benefit Plan Income Tax Return (Jump Code: T3S)
Taxprep for Trusts now supports the electronic filing of Forms T3S and T3M. Diagnostics were also added to assist with the EFILE process.
Reminder: Taxprep for Trusts cannot EFILE more than one return at the same time, may it be Forms T3, T3M, T3RCA or T3S.
T3NB, New Brunswick Tax (Jump Code: T3NB); and
T3NBMJ, Provincial (Multiple Jurisdictions) – New Brunswick Tax (Jump Code: MJ NB)
On November 1, 2022, the Government of New Brunswick announced the removal of one tax bracket for the 2023 and subsequent taxation years. Therefore, the tax brackets for graduated rate estates (GRE) and qualifying disability trusts (QDT) will be the following:
|
Tax brackets |
Rates |
|
$47,715 or less |
9.4% |
|
More than $47,715, but not more than $95,431 |
14% |
|
More than $95,431, but not more than $176,756 |
16% |
|
More than $176,756 |
19.5% |
T3SK, Saskatchewan Tax (Jump Code: T3SK); and
T3SKMJ, Provincial Tax (Multiple Jurisdictions) – Saskatchewan Tax (Jump Code: MJ SK)
The line Saskatchewan T3M tax credit has been added to these forms.
T183 Trust, Information Return for the Electronic Filing of a Trust Return (Jump Code: T183)
The Representative Identifier (Rep ID) cell has been added in Part C, Electronic Filer Identification.
The CRA has indicated that the RepID entered on Form T183 should be the same that you or your firm provided during the registration or the renewal process for the EFILE number shown on this form, regardless of who is preparing or transmitting the return. This field is optional on Form T183 for 2022 tax returns and can be left blank. If a RepID is entered, it will be transmitted electronically with the return. However, the CRA has indicated that the RepID will not be used to track the accuracy of tax returns; it is simply an additional mechanism for the CRA to ensure that the users of EFILE services have been suitably screened.
At the CRA’s request, this field is partially masked when the form is printed.
T1229, Statement of Resource Expenses and Depletion Allowance (Jump Code: 1229);
T101, Statement of Resource Expenses (Jump Code: T101); and
T5013, Statement of Partnership Income (Jump Code: T5013)
On December 15, 2022, Bill C-32 received Royal Assent. This bill includes a new 30% critical mineral exploration tax credit for specified mineral exploration expenses incurred in Canada that are renounced to flow-through share investors. As a result, lines Critical mineral exploration tax credit (CMETC) and Portion subject to an interest-free period – CMETC have been added to the T101 and T5013 slips. The information that is entered on these lines will be transferred to the new Critical mineral exploration tax Credit (CMETC) column of Part I in Form T1229 as well as in line Portion subject to an interest-free period. The CMETC column has also been added to the chart in Part IV.
TP-80, Business or Professional Income and Expenses (Jump Code: Q80)
If you are an accountant, a dentist, a lawyer, a notary, a physician, a veterinarian or a chiropractor, the value of the work in progress at the end of the year must be included in your income for the year. If you had elected, for the federal income tax return, to exclude the value of the work in progress at the end of the year from your income and the election was still valid during the last tax year that started before March 22, 2017, a transitional measure stating that the full value of this work would be included in your income for the year as of the fifth tax year beginning after March 21, 2017, was applicable. This transitional measure is no longer in effect. Moreover, for the tax years ending in 2022 and the following tax years, the entire value of the work in progress at the end of the fiscal period must be included in your income.
Notice to reader removed
As a result of the coming into force of the new Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements, published by the Auditing and Assurance Standards Board, the software introduces changes to the Notice to Reader.
CSRS 4200 addresses compilation engagements, also referred to as “Notice to Reader” in practice and contains new conducting and reporting requirements. Therefore, to align with key changes, including scope and reporting standards, the Notice to Reader is taken from the software.
The removal of the Notice to Reader is showcased in the following locations in the software:
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removal of the Notice to Reader letter (Federal and Québec)
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removal of options in Preparer profile section related to Notice to Reader and disclaimers
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changes in Form ID, Letter C, and Self-employment income statements.
The following is retained:
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the Custom mention option in preparer profile
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the Engagement letter.
Technical Information
Technical Changes
Electronic signature – Adding initials
It is now possible to add an e-tag so that a signatory's initials are included in a custom letter when using the electronic signature feature.
With the exception of the Engagement letter which contains the s1 and d1 e-tags, customer letters do not have e-tags integrated by default. To add the main taxpayer’s initials, you must add the \i1\ e-tag to your custom letter, as shown in the example below:
Where:
\s1\ corresponds to the e-tag;
\d1\ corresponds to the signature date; and
\i1\ corresponds to the initials.
Batch synchronizing CCH iFirm portal information
It is now possible to synchronize multiple client files with the electronic signature information found in CCH iFirm Portal through the Client Manager view. In addition, the CCH iFirm Log that is displayed when the synchronization is complete now contains statistics that provide a view of the number of taxpayers for whom the synchronization was successful, those for whom an error occurred, or those for whom no information was synchronized. For more information, please consult the topic Synchronizing information from the CCH iFirm portal.
Electronic filing of T3M and T3S returns
The Environmental trust tax returns (Jump Code: T3M) and the Supplementary unemployment benefit plan tax returns (Jump Code: T3S) that were previously efiled through Taxprep Forms are now efiled through Taxprep for Trusts. Please note that you need an EFILE number and password to file a T3M or a T3S return.
To this end, several changes have been made to Taxprep for Trusts to allow for the electronic filing of T3M and T3S returns:
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The Transmit/General Return menu has been renamed Transmission/General and Specialized Returns.
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The Transmit dialog box available from the Transmission/General and Specialized Returns/Transmit menu now allows you to select the client for whom a T3M or T3S return must be filed, as well as view the EFILE status of these returns. Note that this option is only available when the EFILE status of a T3S or a T3M return is other than Not Applicable.
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The T3M – EFILE Eligible and the T3S – EFILE Eligible filters have been added to the filters in the Client Manager view. These filters display all client files in which a T3M or T3S return is eligible for EFILE.
Electronic filing of T3RCA returns
A Retirement Compensation Arrangement (RCA) Part 3 XI.3 Tax Return (Jump Code: T3RCA) can now be submitted using EFILE.
To this end, changes have been made to Taxprep for Trusts:
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The dialog box Transmit is available from the Transmission/General and Specialized Returns/Transmit menu and now allows you to select the clients for which you want to file a T3RCA return and view the EFILE status of that return.
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The T3RCA EFILE Eligible filter has been added to the filters in the Client Manager view. It displays all client files where a T3RCA return is eligible for EFILE.
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.
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 Taxprep for Trusts. If you want to review your subscription to Taxprep e-Bulletin, visit https://support.wolterskluwer.ca/en/ and, in the Newsletter tab, select Subscription Manager.
You can also send an e mail to cservice@wolterskluwer.com to indicate the products for which you want to receive general information or information on our CCH software (Personal Taxprep, Corporate Taxprep, Taxprep for Trusts, Taxprep Forms or CCH Accountants’ Suite).
How to Reach Us
Customer Service:
cservice@wolterskluwer.com
Tax and Technical support:
csupport@wolterskluwer.com
Telephone
1-800-268-4522