		Navigation

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.

Getting Started with TaxTron

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 2015.2. The software has been certified by Canada Revenue and currently supports a year end from January 1, 2013 to May 31, 2016.

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 T2 Professional for Corporations is meant for practitioners who have an efiler number. An Efile number is required to electronically file corporate tax returns. If you do not have an Efile number, you can obtain one from CRA. TaxTron T2 for Corporations is designed for individuals who want to file their own corporate tax return. To electronically file your own corporate return, you will need a web access code. If you don't yet have one, the software will automatically contact CRA when you NETFILE and generate a Web Access Code for you.
- NETFILE of the Alberta AT1 return (NEW in 2015.2): TaxTron now supports electronic filing of the Alberta AT1 corporate tax return.
  
  Individuals and Tax Professionals will have to fill out the Alberta EDI form. Professionals will also have to ensure they have recorded their full information in the Preparer tab of the Preferences. The information will flow from there to part 2 of the Alberta EDI form.
  
  You can access the new Alberta NETFILE option through the Transmission File menu.
- Schedule 8 Supplement: Additional information is now required when clean energy equipment is acquired. The new fields can be found on the form named Schedule 8.
- 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 information, check out our demos:

Filing via NETFILE

Filing via EFILE

Aggressive tax planning
Changes were announced concerning captive insurance, synthetic equity arrangements, and tax avoidance related to
corporate capital gains (section 55):
Captive insurance – The foreign accrual property income (FAPI) rules ensure that the profits of a Canadian taxpayer
from the insurance of a specified Canadian risk (typically a risk insured through a life, property, or business insurance
Policy) remains taxable in Canada. These rules will be strengthened for tax years of taxpayers that begin after
April 20, 2015.
Synthetic equity arrangements – A corporation is allowed to deduct, subject to certain exceptions, taxable dividends received in computing its taxable income. This deduction will be denied on certain arrangements between a corporation (typically a financial institution) and an investor that does not pay Canadian income tax. This is effective for dividends that are paid or that become payable after April 2017 and, in some circumstances, for dividends that are paid or become payable after October 2015 and before May 2017.
Tax avoidance related to corporate capital gains (section 55) – A corporation is allowed to deduct, subject to certain exceptions, taxable dividends received in calculating its taxable income. Where these dividends significantly reduce the capital gain on a share of a corporation, an anti-avoidance rule deems them to be a capital gain, and they are taxed accordingly. This rule will be expanded so that it also applies where one of the purposes of this type of dividend is to increase a loss. This is generally effective for stock dividends received after April 20, 2015.

Repeated failure to report income penalty

For tax years that begin after 2014, this penalty may now be charged only if the amount of income you failed to report on a return is $500 or more. The calculation of the penalty has also been modified.

Capital cost allowance

Accelerated capital cost allowance (CCA): Manufacturing and processing machinery and equipment – Eligible machinery and equipment acquired after 2015 and before 2026 for use in Canada primarily for the manufacturing and processing of goods for sale or lease will be included in a new class 53. This class will provide an accelerated CCA rate of 50% on a declining-balance basis and will be subject to the half-year rule. These assets will be qualified property for the purposes of the Atlantic investment tax credit. The assets acquired before 2016 currently qualify for a temporary accelerated CCA rate of 50%, on a straight-line basis under class 29.

Accelerated capital cost allowance: Liquefied natural gas – A CCA rate of 30% now applies for equipment used in an eligible liquefaction facility (22% allowance in addition to the 8% allowed by class 47). A CCA rate of 10% now applies for eligible liquefaction buildings used as part of an eligible liquefaction facility (6% allowance in addition to the 4% allowed by class 1). The amount of these additional allowances of 22% and 6% can only be deducted from, and cannot exceed, the income for the tax year from the eligible liquefaction activities in respect of the eligible liquefaction facility. A separate class 47 is prescribed for the eligible equipment and a separate class 1 is prescribed for the eligible buildings. The above rules apply to eligible equipment and buildings acquired after February 19, 2015, and before 2025.

Canadian exploration expenses (CEE)

For expenses incurred after February 2015, the costs associated with undertaking environmental studies and community consultations that are required in order to obtain an exploration permit or licence are eligible for CEE treatment.

Agricultural cooperatives: Deferral of tax on patronage dividends paid in shares

The temporary deferral of tax on patronage dividends paid by an agricultural cooperative corporation in the form of eligible shares is extended for eligible shares issued before 2021.

Gifts to foreign charitable foundations

While a charitable organization outside Canada to which Her Majesty in right of Canada made a gift could be registered as a qualified donee (provided certain conditions were met), foreign charitable foundations were not eligible for qualified donee status. For applications made on or after June 23, 2015, any foreign charity (including foreign foundations) can apply to be registered as a qualified donee if all the other conditions are met.

Gifts to Canada, a province or a territory

As specified in Bill C–43, the eligible amount of gifts to Canada, a province, or a territory that is currently deductible under paragraph 110.1(1)(b) will be deductible as charitable gifts under paragraph 110.1(1)(a) when the gifts are made in 2016 and later tax years.

Small business tax rate

The small business tax rate will be reduced from 11% to 9% over a four-year period, starting in 2016.

Newfoundland and Labrador capital tax on financial institutions

Effective April 1, 2015, this tax is increased from 4% to 5%.

Newfoundland and Labrador interactive digital media tax credit

The Province has introduced a new refundable tax credit for eligible interactive digital media projects in the province. The credit is equal to 40% of qualifying expenditures incurred on or after January 1, 2015.

Nova Scotia film industry tax credit

This credit is ended for film and television productions that start principal photography after June 30, 2015. On July 1, 2015, the Nova Scotia Film & Television Production Incentive Fund began. The fund is not administered by the CRA. Productions that began principal photography before July 1, 2015, are still eligible to apply for and receive the credit based on the Nova Scotia film industry tax credit rules.

Nova Scotia digital animation tax credit

This new credit starts on July 1, 2015 to provide incentive for digital animation productions after the film industry tax credit is ended. The base credit will be 50% of eligible labour. Overhead provisions similar to the digital media tax credit will apply. All digital-animation labour will be eligible for a bonus of 17.5% on digital animation specific activities. There will be a maximum on eligible salary levels within the credit.

Ontario resource tax credit and Ontario additional tax re Crown royalties

Effective April 23, 2015, to harmonize with the federal government and other provinces, the Ontario resource tax credit and the additional tax on Crown royalties are eliminated and replaced with a deduction for royalties and mining taxes. You can carry forward unexpired unused Ontario resource tax credits in the first five tax years beginning after April 23, 2015. The credit and the tax are calculated on a prorated basis for tax years that include April 23, 2015.

Ontario apprenticeship training tax credit

For eligible expenditures incurred by a corporation for a qualifying apprenticeship starting after April 23, 2015, the general rate of this credit is reduced from 35% to 25%. The rate for small businesses (with salaries or wages of $400,000 or less per year) is reduced from 45% to 30%. The annual maximum amount of the credit per qualifying apprenticeship is decreased from $10,000 to $5,000, and the eligibility period is decreased from the first 48 months of an apprenticeship program to the first 36 months.

Ontario computer animation and special effects tax credit

For expenditures incurred after April 23, 2015, the tax credit is decreased from 20% to 18%. Productions starting after April 23, 2015, must also receive the Ontario production services tax credit or the Ontario film and television tax credit to be entitled to claim this credit. Transitional relief is available.

Ontario production services tax credit

For qualifying production expenditures incurred after April 23, 2015, the credit is reduced from 25% to 21.5%. For tax years beginning after April 23, 2015, qualifying production expenditures for a tax year cannot be more than four times the Ontario labour expenditures (including labour under a service contract). Expenditures incurred through non-arm’s length contracts are limited to expenditures that would have been eligible if incurred directly by the corporation. For expenditures incurred after June 30, 2009, only expenditures incurred after the final script stage to the end of the post-production stage are eligible for the credit. Transitional relief is available.

Ontario interactive digital media tax credit

For expenditures incurred after April 23, 2015, the credit focuses on entertainment products and educational products for children under 12. Certain products (for example, search engines, real estate databases, or news and public affairs products) are excluded. The rules that exclude promotional products have been strengthened. Transitional relief is available. Changes have been made to the certification process for products not certified before April 24, 2015. The new requirement will be based on the labour costs of the corporation developing the product.

Ontario sound recording tax credit

This credit is ended for expenditures incurred after April 23, 2015. Transitional relief is available if the eligible sound recording started before April 23, 2015, the expenditure was incurred before May 1, 2016, and the corporation did not receive an amount from the Ontario Music Fund in respect of the expenditure.

Manitoba business limit

Effective January 1, 2016, the Manitoba business limit is increased from $425,000 to $450,000. The business limit is prorated for tax years that straddle January 1, 2016.

Manitoba research and development tax credit

The period for which unused tax credits can be carried forward is increased from 10 years to 20 years for tax years that end after 2005.

Manitoba co-op education and apprenticeship tax credit (name changed to “Manitoba paid work experience tax credit,” as of September 1, 2015)

This credit is expanded to include employers who hire students in high school vocational programs not connected with the apprenticeship system, including areas such as health care, child care, business and hospitality. Other enhancements were also made.

Manitoba small business venture capital tax credit

For eligible shares issued after July 30, 2015, the maximum number of employees an eligible small business corporation can have is increased from 50 to 100 full-time equivalent employees. The list of eligible businesses now includes non-traditional farming ventures and brew pubs.

Manitoba cultural industries printing tax credit

This credit, which was scheduled to expire December 31, 2015, is extended three years to the end of 2018. Changes to the calculation of the tax credit were also made.

Manitoba interactive digital media tax credit

This credit, which was scheduled to expire December 31, 2016, is extended three years to the end of 2019.

Manitoba green energy equipment tax credit

This credit will be expanded to include biomass fuel energy equipment that is installed in Manitoba and used in a business. The tax credit rate will be 15%.

Manitoba film and video production tax credit

This credit, which was scheduled to expire December 31, 2016, is extended three years to the end of 2019.

British Colombia SR&ED Credit (T666)

TaxTron 2015.2 version is supporting form T666 to claim Provincial SR&ED credit

Refer to CRA for more information.