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Known Issue: AT1 Schedule 1, SBD Rate Should Be 0.06 as of July 1, 2020

In TaxCycle T2, on the Alberta AT1 Schedule 1, the Alberta small business deduction (SBD) effective date and rate in the current version of TaxCycle T2 has not been revised according to the recent announcement of Alberta’s Recovery Plan. If an Alberta CCPC has days in the tax year on or after July 1, 2020, the correct Alberta SBD effective date and rate should be July 1, 2020, and 0.060, respectively.

Workaround

  1. Open the TaxConstantsWS.
  2. Go to Small Business Limit table in the Alberta AS1 section.
  3. Change the effective date of 2021/01/01 to 2020/07/01.
  4. Reduce the SBD rate from 0.070 to 0.060.

Screen Capture: Tax Constants Worksheet

Anticipated Resolution

We will resolve this issue in the next TaxCycle release.