Corporate Linking

Updated: 2023-11-16

Corporate linking allows you to share T2 tax information automatically (such as the small business deduction limit allocation) between associated/related corporations.

To get started, complete the CGI worksheet, then create a corporate linking (CGILink) file to store the common data for the corporate group.

You can share data in real time or create a corporate linking file to import later, when needed:

• If you open all the T2 files for corporations in the corporate group at the same time, you can create a live link between the files to share data automatically between the files as you work.
• If you open only one T2 file and complete the CGI worksheet, you can create a corporate linking file and import it into returns for the associated/related corporations later.

1. Complete the CGI Worksheet

2. Create a Corporate Linking File

3. Import a Corporate Linking File

Corporation Not Found in the Corporate Linking File

If the corporation name, tax year and business number for all associated/related corporations in the corporate linking file do not exactly match those on the CGI worksheet of the target file, TaxCycle may need assistance establishing the link relationship.

This can occur when source and target files use inconsistent spelling, spacing or punctuation in a corporate name, or if the corporate linking file only contains the corporate name and not the business number or tax year for a target corporation.

If this happens, a dialog box will appear for you to choose how to add the corporation to the corporate group:

1. Click the Cancel to close this dialog box and return to the source file to fix or add any missing data on the CGI worksheet (see step 1, above), then update the corporate linking file from there and import again.
2. Replace the data in the corporate linking file with the data in the file you are attempting to import it into. This second option is most useful if you spot an obvious discrepancy in the corporate names, such as spelling, spacing or punctuation differences and you want to make them consistent.
3. Add the missing corporation to the corporate linking file. This option is most useful if you didn’t list the corporation on the source CGI worksheet before creating the corporate linking file.

Source and Target Files

Once you establish a link between all the files in the corporate group, TaxCycle considers each file either a “source” or a “target” file in the corporate linking relationship. Each corporate group can have only one source file, but it can have as many targets as appear on the CGI worksheet. 

Important! If you make changes to a target file and update the corporate linking file from that target file, it then becomes the new source file and previous source file becomes a target file. To re-establish a live link between all files in the corporate group, you must import the updated corporate linking file into each target file. 

Update a Corporate Linking File

If you make changes to the master allocation data in the source file, update the corporate linking file to share these changes with target returns. Go to the Data menu, click Corporate Linking and select Update CGI file.

Shared Data on the CGI Worksheet

Corporate linking shares two types of data: return-specific data and master allocation data. The type of data determines how the sharing works.

Return-specific data

Return-specific data is data calculated within the tax return and shared through corporate linking. This includes current year paid up capital, taxable income, adjusted aggregate investment income (AAII) and undepreciated capital cost (UCC) of designated immediate expensing property (DIEP).

If you create a live link by opening all related the files at once, TaxCycle will automatically update this type of data in the corporate group and automatically share it with any of the source or target open returns.

Master allocation data

Master allocation data is information from a master agreement in which allocation of a threshold or limit is prepared. This includes the S8 immediate expensing limit allocation, S23 small business deduction limit allocation.

To share any updates to this data, you must return to the source T2 return and make the allocation on the CGI worksheet, then update the corporate linking file to share the allocation percentage or dollar amount with all target corporations.

CGI Worksheet Does Not Match the Latest Corporate Data

1. If you change master allocation data in a target file, TaxCycle will warn you. Click the link to jump to the field with the first discrepancy.
2. Review messages also highlight any differences between the CGI worksheet and the corporate linking file.
3. To use the values in the corporate linking file and reactivate the link with the corporate group, click the link in the message.

Unlink a File

To remove the link to the corporate linking file, go to the Data menu, click Corporate Linking, then select Cancel CGI Link.