Getting Started
TaxTron has been designed, by Canadians
for Canadians, to allow the user to prepare their T2 corporate Canadian
tax returns quickly and easily. Able to handle returns from simple to
complex, electronic filing or the traditional printing and mailing of
your return, the program has been engineered to prepare your return efficiently
and easily, so you can sure your taxes are done correctly.
The Help file for TaxTron is an online
resource. This allows the help to be kept up-to-date as new developments
arise.
Help and Support
Our TaxTron support staff are ready to
assist you. Should you have questions or require assistance, you can contact
us by several methods:
Traditional
Mail
E-Mail
Phone
What's
New in TaxTron
TaxTron
T2 is currently is at version 2013.1. The software has been certified
by Canada Revenue and currently supports a year end from January 1, 2010
to October 31, 2013.
Note:
The software is not currently approved for Quebec CO-17 Returns.
This guide may contain changes that
had not yet become law at the time of printing. It may also relate to
forms not currently supported by the software.
TaxTron T2 now comes in a Professional
version and a NETFILE version. TaxTron Professional is meant for practitioners
who have an efiler number. An Efile number is required to electronically
file corporate tax returns with TaxTron Professional. You can obtain an Efiler Number from
CRA, if you don’t have one. TaxTron NETFILE is designed
for individuals who want to file their own corporate tax return, non-resident tax return and for those tax preparers who are not eligibile to have an EFILER number.
To electronically file a corporate return with TaxTron NETFILE, you will need
a web access code. You can obtain a web access code from CRA,
if you don’t have one. Streamlined
submission of files to CRA: Now you can submit your return
with one click. No more browse for the file and attach it on CRA’s
form. This process will be automatically completed for you. For
more watch demos.
Filing
via NETFILE
Filing via EFILE
New
Corporation Identification Form: Data entry that has been
done on the T2 form has been moved to a new corporation identification
(ID) form. This new form is designed to capture the required information
to complete a corporate tax return. You can always use the jumps
from the T2 form and be taken to the corporation identification
form. New Associate Form: This new form is designed to enter
details of associated corporations. Each associated corporation
will have its own instance of the Associate form. You can add
more instances as required. This new form replaces the old Assoc
and SBD. Printing: Printing of the GIFI forms
is now streamlined to print pages with the corresponding data
entry. Online services built for businesses -
CRA
has added new and enhanced online services to give you
more control of your business tax accounts. You can now :
- transfer payments between programs
accounts (for example, from corporation to GST/HST) within
the same nine digit business number; and
- request that we stop issuing
remittance vouchers that accompany notices and statements.
Refer to CRA for
more information.
North American Industry Classification System (NAICS)
codes – Since November
2011, all certified tax preparation software for T2 returns use
self identified North American Industry Classification System
(NAICS) codes. As a result, corporations no longer need to fill
out lines 281, 282 and 283, which were removed from the 2011 T2
return. Partnerships - Elimination of corporation
tax deferral –
A corporation that has a significant interest in a partnership
with a fiscal period different from the corporation’s tax year
will no longer be able to defer tax. This rule may also affect
other corporations if the fiscal period (of the partnership they
are a member of) is changed. Stop-loss rule on the redemption of a share
– This stop-loss rule is extended for shares disposed of after
March 21, 2011.
Capital cost allowance (CCA) – Accelerated
CCA for Clean Energy Generation - For eligible assets acquired
after March 21, 2011, that have not been used or acquired
for use before March 22, 2011, Class 43.2 is amended
to include equipment used by the taxpayer, or by a lessee of the
taxpayer, to generate electrical energy in a process in which
all or substantially all of the energy input is from waste heat.
Accelerated CCA
for Manufacturing and Processing Sector - Eligible machinery and
equipment acquired by the taxpayer in 2012 or 2013, will continue
to be included in Class 29 and eligible for a 50% straight line CCA
rate.
Oil sands - Canadian exploration expense (CEE)
and Canadian development expense (CDE)
– Oil sands and shale resource properties - For acquisitions
made after March 21, 2011, the cost of acquiring oil
sands leases, and other oil sands or shale resource property,
is treated as Canadian oil and gas property expense (COGPE), which
is deductible at 10% per year on a declining balance basis, instead
of being treated as CDE, which is deductible at 30% per year on
a declining basis.
Pre-production development expenses of oil
sands or shale mines - The development expenses incurred to bring
a new oil sands or shale mine into production in reasonable commercial
quantities are to be treated as CDE, which is deductible at 30% per year
on a declining balance basis. The change applies for expenses incurred
after March 21, 2011, and will be phased-in until 2016. These
expenses were previously treated as CEE, which is deductible at 100% in
the year incurred. This last treatment will be maintained for expenses
incurred before 2015 for new mines on which major construction began before
March 22, 2011.
Federal qualifying environmental trust tax credit
– The definition of qualifying environmental trust tax
credit is extended for 2012 and later tax years. Nova Scotia small business income tax rate
– The small business income tax rate has been reduced from 4.0%
to 3.5%, effective January 1, 2013. This rate will be pro-rated
for tax years that straddle January 1, 2013. New Brunswick income tax rates
– Effective July 1, 2011, the higher income tax
rate is reduced to 10%. The reduction of this rate formerly planned
for July 1, 2012, is cancelled. Effective January 1, 2012,
the small business income tax rate is reduced from 5% to 4.5%.
This rate is pro-rated for tax years that straddle these dates.
New Brunswick film tax credit - The
New Brunswick film tax credit will be phased out starting April 6, 2011.
Ontario Media Development Corporation (OMDC) application
- Effective April 1, 2011, online application for the
OMDC is mandatory. Ontario book publishing tax credit - Qualifying
expenditures incurred after March 29, 2011, include
the marketing expenditures incurred 12 months before to 12 months
after the literary work is published. Ontario basic income tax rate - The basic
income tax rate will remain at 11.5%. The rate was scheduled to
fall to 11% on July 1, 2012, and to 10% on July 1, 2013. Manitoba film and video production tax credit
- For productions that start after April 17, 2012, accommodation
costs incurred and paid up to $300 (including tax) per night per
unit will be added in the calculation of the production costs. Manitoba data processing centre investment tax
credit - This is a new refundable tax credit available
to data processing corporations with a permanent establishment
in Manitoba. The tax credit will be equal to 4% of the capital
cost of new qualified property that is a building and 7% of the
capital cost of new qualified property that is machinery or equipment.
The property must be purchased or leased by the company for use
in its data processing centre in Manitoba and be available for
use after April 17, 2012 and before 2016. Manitoba nutrient management tax credit
- Agribusiness corporations with a permanent establishment in
Manitoba will be eligible for this new refundable tax credit.
The credit will be equal to 10% of the costs related to the acquisition
and installation of environmentally sound systems installed for
use in Manitoba that reduce the risk of nutrient transport to
water and help to improve the water quality of Lake Winnipeg.
The assets must be acquired and available for use after April
17, 2012, and before 2016. Manitoba manufacturing investment tax credit
- This credit is extended to December 31, 2014. A corporation
can renounce, in whole or in part, the manufacturing investment
tax credit. Manitoba co-op education and apprenticeship tax
credit - The components of the credit that were scheduled
to expire on December 31, 2011 (the co-op student hiring
incentive, the co-op graduate hiring incentive and the advanced-level
apprentice hiring incentive), are extended to December 31, 2014.
The following three components of the credit will be enhanced
for employers of apprentices who complete a level after 2012,
or of journeypersons who become newly certified after 2012:
The
early-level apprentice hiring incentive (currently 10% of
wages and salaries up to a maximum of $2,000 per year per
apprentice) is enhanced by half to 15% of wages and salaries
up to a maximum of $3,000. It is doubled to 20% of wages and
salaries up to a maximum of $4,000 for employers who hire
early-level apprentices who normally reside outside of Winnipeg
and who normally report to an employer's office in rural and
northern Manitoba. This component of the credit is also expanded
to cover employers eligible for the federal apprenticeship
job creation tax credit, who will receive a top-up that is
equal to the difference between the CEATC and the federal
credit. The
advanced-level apprentice hiring incentive (currently 5% of
wages and salaries up to a maximum of $2,500 per level per
employee) is doubled to 10% of wages and salaries up to a
maximum of $5,000. The
journeypersons hiring incentive (currently 5% of wages and
salaries up to a maximum of $2,500 per year per employee)
is also doubled to 10% of wages and salaries up to a maximum
of $5,000.
Manitoba odour-control tax credit - This
credit is extended to December 31, 2014. A corporation
can renounce, in whole or in part, the odour-control tax credit.
Manitoba “Neighbourhoods Alive!” tax credit
- Effective April 13, 2011, corporations that make financial
donations and provide an eligible service contribution to help
charitable organizations set up eligible social enterprises in
Manitoba can claim a 30% non-refundable tax credit of up to $15,000
a year, on top of their charitable donation deduction. Manitoba cultural industries printing tax credit
- This is a new refundable tax credit for Manitoba printers equal
to 15% of eligible printing costs incurred and paid after April 12, 2011,
and before 2016 to produce eligible books. Manitoba book publishing tax credit - This
credit is extended to December 31, 2014. It is also
expanded to include non-refundable monetary advances and labour
costs related to publishing an electronic version of an eligible
literary work, for eligible expenses incurred and paid after April 12, 2011.
Also, the bonus applied to Manitoba printing costs when an eligible
book is printed on paper with a minimum of 30% recycled content
is increased from 10% to 15%, for printing costs incurred and
paid by a publisher after April 12, 2011. Manitoba green energy equipment tax credit
- For installations after April 12, 2011, the tax credit
for Manitoba manufacturers
of qualifying geothermal heat pumps is increased from 5% to 7.5%.
The credit for Manitoba manufacturers is also expanded to include
a credit for green energy transmission equipment. The tax credit
for purchasers
of qualifying made-in-Manitoba geothermal heat pumps installed
in Manitoba is also increased from 5% to 7.5%. The tax credit
applicable to other eligible installation costs for geothermal
heating systems installed in Manitoba is increased from 10% to 15%. Saskatchewan small business income tax rate
- The small business income tax rate is reduced from 4.5% to 2%
effective July 1, 2011. Saskatchewan research and development tax credit
- Effective for qualifying expenditures incurred after March 31,
2012, the 15% tax credit will continue to be refundable only for
Canadian-controlled private corporations, up to a maximum annual
limit of $3 million in qualifying expenditures. Qualifying expenditures
that are more than the annual limit, and all qualifying expenditures
incurred by other corporations, will be eligible for a 15% non-refundable
tax credit. Any unused non-refundable tax credits earned in a
year can be applied against tax payable in any of the following
10 tax years, or the previous 3 tax years. Saskatchewan film employment tax credit
- The credit is eliminated for new productions. Film productions
that are registered with SaskFilm before July 1, 2012, will continue
to be eligible for the tax credit, which will be fully phased
out by December 31, 2014. British Columbia film and television tax credit
- For interprovincial co-productions that start principal photography
after December 31, 2011, the credit reduction that was applied
when the corporation owned less than 100% of the copyright is
cancelled. For productions that started principal photography
on or after September 1, 2010, cutscene productions are excluded
from the tax credit. British Columbia interactive digital media tax
credit - For productions that started principal photography
on or after September 1, 2010, cutscene productions are eligible
activities, provided that all other requirements of the credit
are met. British Columbia book publishing tax credit
- The British Columbia book publishing tax credit is extended
to March 31, 2017. British Columbia training tax credit for shipbuilding
and ship repair industry - Eligible employers who employ
apprentices in the British Columbia shipbuilding and ship repair
industry can receive a refundable tax credit equal to 20% of salaries
and wages paid per year, up to $5,250, per eligible apprentice
in the first 24 months of an eligible apprenticeship program.
They can also receive similar credits based on an apprentice's
completion of higher training levels. These tax credits are enhanced
by 50% for apprentices who are First Nations individuals or persons
with disabilities. You cannot claim the existing British Columbia
training tax credit if you claim this new training tax credit
for shipbuilding and ship repair industry.
Refer to CRA
for more information.
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