This major TaxCycle release extends Canada Revenue Agency (CRA) and Alberta certification for T2 and AT1 returns with corporate year ends up to October 31, 2018. (Québec CO-17 continues to support tax years ending in 2016 up to October 31, 2018). This release also provides access to the 2018 preview modules of TaxCycle T3 and TaxCycle T5013.
This version is available as an automatic update, full download from our website and a free trial. (To deploy auto-update files from your own network, see the Download auto-update files page.)
- T2 and AT1 certification extension
- T2 file conversion message
- RC59 business consent EFILE
- T106 and T1134 EFILE
- New T2 forms
- Updated federal T2 forms
- Updated Alberta AT1 forms
- Ontario budget updates
- Québec budget updates
- Prince Edward Island budget update
- Improvements to the T2PaymentDueDate worksheet
- Rollover of T3 and T5013 modules to 2018
- Preview of T4PS, T4A-RCA and T4A-NR forms
- Client Manager: Refund (Balance due) column
- Client Manager: Clients that did not return
- Jumping to prior-year adjusted returns
- Customer-requested enhancements and fixes
Client Manager re-index required
To support changes to the Client Manager related to linking to adjusted returns, the database must be re-indexed after installing this release.
- If you install this update at the end of the day, the Client Manager will re-index automatically overnight. TaxCycle does not need to be running as the Client Manager service runs in the background even when TaxCycle is closed. This re-index is part of what it does every night (so the computer must be powered on).
- If you don't want to wait, you can manually re-index the database. To learn how, read the "Indexing and re-indexing" section in the Indexing and monitored folders help topic.
T2 and AT1 certification extension
TaxCycle is certified for the preparation and filing of federal T2 and Alberta AT1 corporate tax returns with tax year ends up until October 31, 2018. (For Québec CO-17 returns, TaxCycle continues to support year ends ending in 2016 up to October 31, 2018.)
T2 conversion message
When you open an existing return, TaxCycle may prompt you to convert it to the new module (as shown below):
This happens when the workflow status of the T2 return you are working on is other than Completed and the corporation's tax year starts on or after January 1, 2016. To see the workflow status, go to File and click Info. To learn more about T2 file name extensions, read the section on the "T2 file name extensions" in the Create a T2 tax return help topic.
RC59 business consent EFILE
This release adds electronic filing of the RC59 and RC59X forms for gaining or cancelling authorization to represent a business. As with all other electronic transmission, look in the Transmit sidebar to guide you through filing RC59 or RC59X forms. Full instructions appear on the RC59 business consent form help topic.
As this is a new service offered by the CRA, we recommend preparers check within a few hours of transmission to see if they have access to the client account through Represent a client.
To allow for electronic filing, we have added two new forms to TaxCycle T2 and renamed two others. Based on the selection you make on the RC59OnlineConsent form, TaxCycle will guide you to complete the correct sections of the other forms if required.
- RC59OnlineConsent—Complete this new worksheet to electronically transmit consent for online access. The details entered on this worksheet are used to complete the RC59TransmissionConsent form that your client must sign before you can submit the RC59 electronically. The CRA does not provide an official copy of this form. This worksheet is our own design based on requirements set by the CRA. Therefore you cannot file this form by mailing it to the CRA. The details on this form must be transmitted to the CRA using the RC59 transmission process; they are not included in the T2 Corporation Internet Filing.
- RC59TransmissionConsent—Before you can transmit an RC59 or an RC59X, print this form and have your client sign it. Similar to the T183Corp for T2 returns, you must keep this signed form on file for 6 years from the transmission date. Do not send it to the CRA unless requested to do so. This form only applies to the RC59 request for online access. To authorize cancelling using the RC59X, your client must sign the RC59XCancel.
- RC59PhoneOrMail—This renames the existing RC59 form that requests access by telephone, fax and paper mail. This form must be mailed to the CRA. If you mail in a paper copy of this form, you will not have online access to the client's account.
- RC59XCancel—This is the existing RC59X form used to cancel authorization of a previous representative. You can now also electronically file this form with the CRA using RC59X transmission process. Your client must sign this form before you can transmit.
T106 and T1134 EFILE
This release adds electronic filing of the following forms from the new TaxCycle T2 module. Please read the related help topics to learn how to electronically file these forms:
- T106 Information return of non-arm's length transactions with non-residents. Read the T106 EFILE help topic.
- T1134 Information return relating to controlled and not-controlled foreign affiliates. Read the T1134 EFILE help topic.
New T2 forms
- S3DividendPaidWS—Schedule 3 dividend paid worksheet.
- Schedule 321—Prince Edward Island corporate investment tax credit.
Updated federal T2 forms
The following forms have been updated in this release. Changes are minor unless further details are provided.
- T2 jacket
- Schedule 1—When GIFI 9980, Unrealized gains (losses), is selected, the amount is either added back to or deducted from the Schedule 1 Other addition or deduction section. (Change based on a customer suggestion.)
- Schedule 7—Review message added to column 620 in Part 6. It appears when the amount on line 620 exceeds the amount on line 610. (No update to the form.)
- Schedules 100, 101, 125, 140, 141 updated to the latest versions.
- Schedule 18—New line 171 added.
- Schedule 28
- Schedule 31
- Schedule 53—Line 120 removed.
- Schedule 54
- Schedule 91—Review message added to columns 158 and 159 to ensure that both of these columns are completed when a corporation name is entered in column 155. (No update to the form.)
- Schedule 381—Line 142 removed; new lines 121 and 148 added.
- Schedule 384—Removed lines 100, 125 and 203 related to 2015 tax year.
- Schedule 389—Removed line 450, Eligible printing costs incurred before April 13, 2011.
- Schedule 390
- Schedule 429 (BC)
- Schedule 548 (ON)—Line 110: The jurisdiction code for "United States Virgin Islands" has been changed from UWI to UVI. The following new codes added: BB (Bahrain), CC (Curacao), CD (Commonwealth of Dominica), EE (Estonia), LBU (Labuan), LC (St. Lucia), LT (Lithuania), NR (Northern Island), RS (Republic of Serbia), SI (Sierra Leone), SRB (Serbia), SX (Slovenia), TY (Turkey), UG (Uganda) and UR (Uruguay).
- T666 (BC)
- Schedule 560 (ON)—Removed lines 465, 470, 471, 472, 570, 575, 576, 577, 606, 607, 605, 609, 611 and 612.
Updated Alberta AT1 forms
The following forms have been updated in this release. Changes are minor unless further details are provided.
- AS12—Calculation on line 091 has been revised so that if there is an amount at line 083 AND line 002 minus line 081 is negative, then line 091 must equal to line 083.
- AS3—The descriptions for the columns 124 and 224 have been updated to include the wording "and transfers".
Ontario budget updates
The following changes address the Ontario budget update from March 28, 2018.
Schedule 508 (ORDTC)
The ORDTC is a 3.5% non-refundable tax credit on eligible Research & Development (R&D) expenditures. Effective for eligible R&D expenditures incurred on or after March 28, 2018, companies that qualify for the ORDTC would be eligible for an enhanced rate of 5.5% on expenditures over $1 million in a taxation year. The $1 million threshold would be prorated for short taxation years. The enhanced tax credit rate would be prorated for taxation years straddling March 28, 2018.
In Part 1 of S508, under line 120, enter the eligible expenditure subject to the additional 2% non-refundable credit. The non-refundable credit is calculated in Part 3 above 202 and is added to the total of line 202. For further information, please refer to the section on The Ontario Research and Development Tax Credit in the 2018 Ontario budget.
Schedule 566 (OITC)
For eligible R&D expenditures incurred on or after March 28, 2018, if a company qualifies for the OITC and has a ratio of R&D expenditures to gross revenues that is:
- 10% or less, the company would remain eligible for the OITC at the 8% rate;
- Between 10% and 20%, the company would be eligible for an enhanced OITC rate that would increase from 8% to 12% on a straightline basis as the company’s ratio of R&D expenditures to gross revenue increases from 10% to 20%; and
- 20% and above, the company would be eligible for the OITC at a 12% rate.
For the purposes of this calculation, both the gross revenues and R&D expenditures must be attributable to Ontario operations. Gross revenues and R&D expenditures attributable to Ontario operations of associated corporations would be aggregated. The rate enhancement would be prorated for taxation years straddling March 28, 2018.
In Part 7 of S566, above line 712, enter the eligible expenditure and rate subject to the additional refundable credit. The refundable credit is calculated and is added to the total of line 712.
For further information, please refer to the section on The Ontario Innovation Tax Credit in the 2018 Ontario budget.
Québec budget updates
The following changes address the Québec budget update from March 27, 2018.
- For 2018, where the employer's total payroll for the year is $1 million or less, Health Services Fund (HSF) contribution rate is reduced from 1.50% to 1.45% in respect of wages paid or deemed paid after March 27, 2018.
- For 2018, where the employer’s total payroll for the year is over $1 million but under $5 million, HSF contribution rate in respect of wages paid or deemed paid after March 27, 2018 is calculated as: 0.7475% + ((0.7025% x employer’s total payroll for the year) / $1 million).
The calculation for line 23 in section 2.2 has been revised. If the calendar year on line 07 is 2018, enter the tips paid in 2018 before March 28, 2018 and after March 27, 2018 in the following new fields:
For further information, please refer to page A.53, in the Additional Information document of Québec Economic Plan.
The following budget changes will apply to calculations when the training start date on line 18c is after March 27, 2018:
- For the tax credit rate on line 91, the tax legislation will be amended so that an enhanced rate of 32% (50% for an Aboriginal person enrolled in an education program or a prescribed program) applies where an eligible employer makes a qualified expenditure in respect of an eligible trainee who is an Aboriginal person.
- For the maximum weekly amounts on line 050, increased maximum of $1,225 (from $1,050), $875 (from $750), and $700 (from $600) will apply.
- In section 4.1 table, the maximum amounts for columns C and H will be increased to $21 and $35, respectively (from $18 and $30).
For further information, please refer to pages A.69 to A.74, in the Additional Information document of Québec Economic Plan.
- March 27, 2018 budget announced that the 3.7% Small Business Deduction rate will be raised to 4.7% as of March 28, 2018. As of January 1, 2019, this rate will be increased to 5.6% (6.5% in 2020 and 7.5% in 2021). The calculation for line 98i has been revised.
- Plus, additional maximum deduction for primary and manufacturing sectors will be phased out from the current rate of 4% to 3% (as of March 28, 2018). This rate is further reduced to 2% (as of January 1, 2019), 1% (as of January 1, 2020) and completely phased out to zero as of January 2021.
- If a taxation year of a corporation straddles periods to which different rates apply, the above rates that will apply to the corporation for that taxation year will correspond to an average rate calculated taking into account the number of days in the taxation year included in each period. The calculation for line 98i has been revised.
For further information, please refer to pages A.60 to A.62, in the Additional Information document of Québec Economic Plan.
Prince Edward Island budget update
The budget reduces the small business tax rate by 0.5% to 4% (from 4.5%) effective January 1, 2018.
Improvements to the T2PaymentDueDate worksheet
- Questions 3 and 4 on the T2PaymentDueDateWS are now calculated based on the income and business limit fields below each question. Previously, these fields had to be entered manually.
- A new column 8 for Taxable income has been added to the Schedule 23 section on the CGI worksheet. This column is auto-populated when files are linked using Corporate Linking. When carrying forward a T2 file, the total amount in column 8 in the Schedule 23 section of the CGI worksheet carries forward to Taxable income for the previous tax year fields under questions 3 or 4 on the T2PaymentDueDateWS.
- The total business limit allocated in column 6 in the Schedule 23 section of the CGI worksheet carries forward to the Business limit for that tax year fields under questions 3 or 4 on the PaymentDueDateWS.
Rollover of T3 and T5013 modules to 2018
The new modules for TaxCycle T3/TP-646 and T5013 allow you to begin data entry for 2018 returns and slips.
- You can carry forward T3/TP-646 and T5013 files from TaxCycle. Carryfowards from other software are not yet available.
- You can use these modules to begin data entry earlier in the year, and even file returns early if need be. These modules permit CRA Internet File Transfer (XML) and transmission of RL-16 to Revenu Québec.
- The government forms are the 2017 forms updated to include 2018 indexed amounts and budget changes announced or estimated based on the information we have at this time. A review message appears on the year-end date field and in a bulletin at the top of the forms to remind you of this.
Preview of T4PS, T4A-RCA and T4A-NR forms
The following forms in the 2018 T4/T4A and NR4 modules are in preview as of this release. The calculations and rates are not complete and they cannot be used for filing.
- T4PS Data entry form
- T4PS Summary
- T4PS Slips
- T4A-RCA Data entry form
- T4A-RCA Summary
- T4ARCA Slips
- T4A-NR Data entry form
- T4A-NR Summary
- T4A-NR Slips
Client Manager: Refund (Balance due) column
A new column in the Client Manager was added to display the refund as a negative number (similar to the default Data Monitor). You can add this column to any column layout. To learn how, read the Column layouts help topic.
Client Manager: Clients that did not return
Two new filters were added to allow you to show returns that do not have a prior year return and/or a next year return. These filters work differently from the carryforward filters. They look at a file and test whether there is any prior year return, no matter how it was created. When combined with the Year filter, a preparer can use these filters to identify clients that did not return for a particular year. For example:
- Select 2016 in the Year filter.
- Select No next year return.
The results will show all clients with a return in 2016 but not in 2017. For returns with variable year ends, these filters look at the year start/end and add/subtract a year.
Jumping to prior-year adjusted returns
This release improves the linking between files in cases when a file was renamed after filing an adjustment. When there are multiple files available, TaxCycle will prompt you to choose the select the correct version of the file when you try jumping to a prior-year return. (Previously, it would either default to the old file name, or ask you to browse for the file.)
- On the Data menu, click Prior Year (or right-click on the return and select Prior Year).
- A new window opens prompting you to choose the version of the file to jump to.
- The first file in the list is the file modified most recently.
- The row with an asterisk in the first column indicates the prior-year file that is currently linked to the current year file.
- Click on a row to select the version of the file you prefer.
- Click Browse to choose a different file.
- Click Open selected to establish the link.
Customer-requested enhancements and fixes
- T1—The words "Final Return" now appear on the T1 jacket when you prepare a final return.
- T1—Provincial attendant care expense claims now calculate correctly for dependants over the age of 18. This resolves a recent known issue.
- T1—Minor typo corrected in the built-in T1 Client Letter (CLetter). This resolves a recent known issue. If you downloaded the template attached to that known issue, you can now delete it from your templates directory.
- T1—Review messages were added to the T2205 to remind you to complete the spouse's amounts when required.
- T2 Agri—Added Quick Fix solutions to update CCA (line 9936) and recapture of CCA (line 9575)
- Corporate Linking—The data from line S511 of CGI worksheet is now included in corporate linking.
- T2 GIFI—A review message will now appear if GIFI line 9980 has a value but there is no corresponding deduction on Schedule 1 lines 705/395. Thanks to @rick.s for the suggestion in our online community.
- T2 GIFI—Unrealized gains/losses from line 9980 on S125 now flow to Schedule 1. Thanks to @valb for the suggestion in our online community.
- T2—When a third party election code (code 2) is selected in Schedule 23, TaxCycle now triggers a review message to complete S28.
- T2—A new check box has been added to the S28 to allow you to automatically complete it from the CGI worksheet.
- T2—On the T2054 Current year and T2054 Next year worksheets, two new date fields were added to Part 4 for the purposes of calculating the sum of each month (“Amount N”). The Filing due date field is automatically calculated. The Actual date filed is manual date entry.