This major TaxCycle release extends Canada Revenue Agency (CRA) and Alberta certification for filing T2 and AT1 returns with corporate year ends up to May 31, 2020.
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 Auto-update files page.)
Ces notes de version sont également disponibles en français.
Patch to version 9.0.37435.0
On December 6, 2019, we released a patch to version 9.0.37435.0 containing the following issues:
- Carryforward: Taxprep and non password-protected files—When carrying forward a Taxprep T2, T3 or Forms return, whether the file was password-protected or not, TaxCycle prompted for a password. This also occurred with a Taxprep T1 file that had once been password-protected.
- AT1 return—When an existing AT1 return is opened, the TaxCycle banner shows that the AT1 return has changed since it was filed. The calculation for AT1 Schedule 18, line 070 was updated. However, this change was not correctly reflected in AS18’s used condition. This resulted in the form showing as “used” in TaxCycle.
Both of these issues have been resolved in this patch.
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 May 31, 2020.
Submit e-Documents Services for T106, T1134, T1135
The Canada Revenue Agency (CRA) Foreign Reporting Requirements Management System (FRRMS) Submit e-Documents Service for electronically filed foreign returns (T106, T1134 and T1135) allows EFILE-authenticated tax preparers to send supporting documents to the CRA directly from TaxCycle. Please read the FRRMS Submit e-Documents Services (T106, T1134, T1135) help topic for full details on how to use this service.
Updated T2 forms
The following forms have been updated in this release. (Changes are minor unless additional info is provided.)
- Schedule 1, Net income (loss) for income tax purposes
- Schedule 2, Charitable Donations and Gifts
- Schedule 5, Tax Calculation Supplementary
- added lines 562, 563 (Nova Scotia)
- added line 699 (Yukon)
- Schedule 7, Aggregate Investment Income and Income Eligible for the Small Business Deduction
- lines 730 and 735 in Part 2 now allow negative amounts to be calculated as per CRA’s request
- Schedule 12, Resource-Related Deductions: additional lines added to Parts 5 and 6 to calculate accelerated resource deductions
- Schedule 17, Credit Union Deductions
- Schedule 23, Agreement Among Associated Canadian-Controlled Private Corporations to Allocate the Business Limit
- Schedule 27, Calculation of Canadian Manufacturing and Processing Profits Deduction
- Schedule 31, Investment Tax Credit
- Part 3 - line 103 is now calculated
- Part 8 - line 360 is removed
- Part 11 - various lines related to tax year ending before January 1, 2017 are removed
- Part 18 - lines 870, 872, 874, 876 removed
- Schedule 39, Agreement Among Related Financial Institutions
- Schedule 49, Agreement Among Associated Canadian-Controlled Private Corporations to Allocate the Expenditure Limit
- Schedule 50, Shareholder Information
- Schedule 53, General Rate Income Pool (GRIP) Calculation
- Schedule 55, Part III.1 Tax on Excessive Eligible Dividend Designations
- Schedule 71, Income Inclusion for Corporations that are Members of Single-Tier Partnerships
- Part 1
- Removed the alignment election question and the Old fiscal period dates from/to.
- Removed the transitional reserve year but left the check boxes for the fourth and fifth reserve years.
- Parts 2, 5 and 6 removed
- More detail added to support the calculation of the income type. Specifically:
- Added Other Income fields to Part 2 (ASPA) and Part 3 (New Partnership Income) and included this in the income type calculation
- Updated the calculation for the stub period income
- Added calculation for the New Partnership income
- Added lines for the prior year adjustments
- Changed the capital gain /loss assignment to record a taxable capital gain as net of allowable capital losses. Zero if negative. In the subsequent year, the taxable capital gain is recorded as an allowable capital loss per ITA 34.2(4)
- Schedule 72 (Income Inclusion for Corporations that are Members of Multi-Tier Partnerships), see detailed notes on Schedule 71
- Schedule 73, Income Inclusion Summary for Corporations that are Members of Partnerships
- Schedule 125, Income Statement Information
- T1044, Non-Profit Organization (NPO) Information Return
- RC366, Direct Deposit Request for Business. Use RC366 was discontinued by the CRA as of July 5, 2019. The form in TaxCycle T2 has been changed into a worksheet in order to preserve previously-entered data.
- The AgriStability/AgriInvest forms for corporations have been updated to their 2019 versions. This covers the harmonized version for Newfoundland, Nova Scotia, New Brunswick, Manitoba, British Columbia and Yukon as well as the versions for Ontario, Saskatchewan and Alberta. The Prince Edward Island version, though not yet available, has been updated with 2019 year references.
- All commodity code and inventory code dropdown lists have also been updated to those provided by CRA for 2019.
T2 Auto-fill My Return
The following new tax data for T2 jacket are now available to download.
- Line 520 (Eligible refundable dividend tax on hand (ERDTOH) at the end of the previous tax year)
- Line 570 (ERDTOH dividend refund for the previous tax year)
- Line 535 (Non-eligible refundable dividend tax on hand (NERDTOH) at the end of the previous tax year)
- Line 575 (NERDTOH dividend refund for the previous tax year)
T2 Auto-fill (AFR) worksheet has been adjusted to add this new tax data.
You can now electronically submit supporting documents for the following lines:
- T2SCH5/line 328 and 889 - Manitoba Child Care Centre Development tax credit
- T2SCH5/line 556 and 834 – Nova Scotia Corporate Tax Reduction For New Small Businesses
Attach-A-Doc worksheet has been revised to add the lines for the above additions
- AT1 (Alberta Corporate Income Tax Return)
- Schedule 1 (Alberta Small Business Deduction)
- Schedule 15 (Alberta Resource Related Deductions) – Additional lines added to Areas D and E to calculate accelerated resource deductions
- Schedule 18 (Alberta Dispositions of Capital Property)
- New lines 071, 073, 077, 078, 096, 098
- Removed lines 072, 074
On October 24, 2019, Alberta’s President of Treasury Board and Minister of Finance delivered the first provincial budget under the new government. The budget proposed to eliminate the following tax credits effective immediately. As such, no new applications are approved after the budget date for the following credits:
- Alberta Investor Tax Credit (AITC) - AT1 Schedule 3
- Community Economic Development Corporation Tax Credit (CEDCTC)
- Capital Investment Tax Credit (CITC) - AT1 Schedule 3
- Interactive Digital Media Tax Credit (IDMTC)
In addition, the Alberta Scientific Research and Experimental Development (SRED) tax credit will be eliminated starting in 2020, with expenses incurred after December 31, 2019 no longer eligible.
The following Alberta SRED schedules in TaxCycle have been adjusted to take this into account:
If a tax year begins after December 31, 2019, Alberta SRED credits will no longer calculate. For a tax year that straddles December 31, 2019, a new field has been provided in AS9Step, Step 2, to reduce Alberta eligible SRED expenditures by the expenditures incurred after 2019.
Corporate income tax special notice Vol. 5 No. 54 : Budget 2019 elimination of corporate tax credits
- Schedule 421 (British Columbia Mining Exploration Tax Credit)
- Schedule 427 (British Columbia Corporation Tax Calculation)
- Schedule 428 (British Columbia Training Tax Credit)
- Schedule 430 (British Columbia Shipbuilding and Ship Repair Industry Tax Credit)
- T1196 (British Columbia Film and Television Tax Credit)
- Schedule 381 (Manitoba Manufacturing Investment Tax Credit)
- Schedule 383 (Manitoba Corporation Tax Calculation)
- Schedule 384 (Manitoba Paid Work Experience Tax Credit)
- Schedule 389 (Manitoba Book Publishing Tax Credit)
- Schedule 366 (New Brunswick Corporation Tax Calculation) – As per the budget announced on March 19, 2019, the New Brunswick government will maintain the current rules for the New Brunswick Small Business Corporate Income Tax Rate rather than implementing the federal passive income tax measure.
- Schedule 341 (Nova Scotia Corporate Tax Reduction for New Small Businesses)
- Schedule 346 (Nova Scotia Corporation Tax Calculation)
- New! Schedule 349 (Nova Scotia Innovation Equity Tax Credit)
- This form has been added as a worksheet as the CRA does not yet accept this form when the return is paper-filed or Internet-filed.
- The calculated tax credit amount is transferred to line 562 of Schedule 5
- New! Schedule 350 (Nova Scotia Venture Capital Tax Credit)
- This form has been added as a worksheet as the CRA does not yet accept this form when the return is paper-filed or Internet-filed
- The calculated tax credit amount is transferred to line 563 of Schedule 5
- Schedule 461 (Northwest Territories Corporation Tax Calculation)
- Schedule 481 (Nunavut Corporation Tax Calculation)
- Schedule 500 (Ontario Corporation Tax Calculation)
- Schedule 504 (Ontario Resource Tax Credit)
- Removed parts 3 and 4
- Small business tax rate is decreased to 3% for number of days after 2019 in the tax year per Bill 12 which received Royal Assent on July 12, 2019
Prince Edward Island
- Schedule 322 (Prince Edward Island Corporation Tax Calculation) – Small business tax rate is decreased to 3% for number of days after 2019 in the tax year per Bill 12 which received Royal Assent on July 12, 2019
- Schedule 404 (Saskatchewan Manufacturing and Processing Profits Tax Reduction)
- Schedule 411 (Saskatchewan Corporation Tax Calculation)
- Schedule 443 (Yukon Corporation Tax Calculation)
New Workflow summary
The new Workflow summary shows the current status of tasks for clients. It provides the information that appears in the Workflow sidebar in a printable format.
To better support integration with the Track sidebar, the Engagement worksheet in TaxCycle T1/TP1 2019 has a new look and new fields to track various due dates. TaxCycle now also synchronizes these due date fields with the Workflow tasks in the sidebar.
This release includes the following changes to built-in templates:
- Customer Request Softened the language in the paragraphs informing T1 clients that their return is late and must be filed as soon as possible. This change applies to CLetter and JLetter.
- Customer Request Added a checklist about Tax on Split Income (TOSI) to the T1 2018 and 2019 Pre-Season (PreSeason, JPreSeason, FPreSeason) and Post-Season (PostSeason, JPostSeason, FPostSeason) letters.
- Customer Request Revised the tuition transfer paragraphs in the 2019 T1 client letters (CLetter and JLetter) to only show federal or provincial credit based on what applies in the return. Previously, it used the words "and/or" rather than being specific.
- Customer Reported The subtotal of the combined balance on the T1 Family Invoice (FInvoice) now correctly includes all dependants instead of only the first dependant.
- Added a section on penalties and interest if the return is late in the T2 client letter (Cletter).
- Added the list of data missing from T4PS and T4A-RCA slips in the Missing Slips (MLetter) template in TaxCycle T4/T4A
- Updated the field code in the Missing Slips (MLetter) template in TaxCycle T5018 to use the Legal Name of the issuer.
- Client Manager – New filter for displaying only search results for Non-principal taxpayers. The check box for this filter appears in the Taxpayer group under Custom filters in Quick Searches sidebar.
- T1 – New links added to the Prices pages in T1 module options for applying price increases to per-item/per-form pricing. Click the Increase prices by 1% and Decrease prices by 1% links to update all the prices in the list.
- T2 – Made the Instalment Worksheet (Federal, AT1 and CO-17) print-friendly format. The on-screen version can still be printed by selecting the "Print as appears on screen" check box in printer/output options.
- T3 – Additional support for allocation of foreign income expenses to link from the S9 Allocation Worksheet to the Foreign Tax Credit Worksheet and corresponding allocations to the T3 Beneficiaries.
- T3 – Fix to audit messages for non-resident beneficiaries when amounts are fully allocated.
- T4 – New net employment income reconciliation worksheet for T4 slips.
- T5013 – Fixed transmission error 440 that occurred when attempting to transmit a T1135.