TaxCycle 13.2.53500.0—T2 and AT1 (Revised)

This certified release of TaxCycle T2 and AT1 extends the supported corporate tax year ends up to October 31, 2024. It also updates the CO-1029.8.36.II and CO-1029.8.36.IK to include changes from Québec’s mini budget from November 7, 2023.

To install this version immediately, download the full installer from our website or request a free trial. Once we enable the automatic update for this version, TaxCycle will prompt you to install it according to the priority set in your TaxCycle Options. (To deploy auto-update files from your network, see the Auto-Update Files page.)

Release Highlights

• T2 and AT1 Filing Date Extension
• T2 File Conversion Message
• New T2 Forms
• Updated T2 Forms
• Alberta AT1 Form Changes
• Québec CO-17 Form Changes
• Data Mining
• Other Updates
• Resolved Issues

T2 and AT1 Filing Date Extension

TaxCycle supports the preparation and filing of federal T2 and Alberta AT1 corporate tax returns with tax year ends up to October 31, 2024.

T2 File Conversion Message

When you open an in-progress T2 return, TaxCycle may prompt you to convert it to the new module. This message appears when the status of the T2 return you are working on is other than “Completed” and the corporation’s tax year starts on or after January 1, 2022.

1. Click the Convert button or the link to convert the return to the newer module. 
2. Save the new return. You can choose to delete the old file by answering Yes to the Delete old return question in the dialog box that pops up. Once a file is deleted, it will no longer appear in the Client Manager or in the recent files list.
3. The new file extension is .2024T2 and supports returns up to October 31, 2024. To learn more about T2 file name extensions, read the T2 File Name Extensions help topic.

New T2 Forms

Schedule 56 (Part II.2 Tax on Repurchases of Equity)

• Introduced in Bill C-59, Schedule 56 calculates the proposed Part II.2 tax on repurchases of equity if a corporation, other than a mutual fund corporation, is resident in Canada and has redeemed, acquired or cancelled equity listed on a designated stock exchange in the tax year.
• The calculation of Part II.2 tax on amount G in Schedule 56 flows to line 705 on page 9 of the T2 jacket. 
• Page 3 of the T2 jacket includes a new check box on line 277 in the Attachments section. 

Schedule 572 (Ontario Made Manufacturing Investment Tax Credit)

• Complete this schedule to claim the Ontario Made Manufacturing Investment Tax Credit.
• Schedule 572 supports line 474, which was added to the Schedule 5 without a supporting schedule in the November 2023 release of TaxCycle T2.
• Complete Part 2 of the Schedule 572 to allocate the $20 million expenditure limit amongst associated corporations directly in Schedule 572 or on the Corporate Group Information (CGI) worksheet.

Updated T2 Forms

Info worksheet

• Added a new question to indicate if the corporation meets the definition of a substantive CCPC under subsection 248(1) as announced in Bill C-59.
  
• This question flows to the new question 290 on page 3 of the T2 jacket.

Engagement worksheet

• Added a Client since field to track how long the client has been a client of your firm. We will link this field to the Client Manager in a future release.
• Added a Salutation field to determine the name TaxCycle will use in templates, and updated the English templates to use the new Salutation field.
• Updated the “Nickname” field to Preferred name.
• Moved the question about whether filing a UHT-2900 return is required from the Info worksheet to the Other Engagements section of the Engagement worksheet.

Schedule 200 (T2 Jacket)

• Added question 290 on page 3 to indicate if the corporation meets the definition of a substantive CCPC under subsection 248(1) as announced in Bill C-59.
• Added a new check box on line 277 and new line 705 to calculate the new Schedule 56 (Part II.2 Tax on Repurchases of Equity).
• Revised calculation conditions in various sections of the T2 jacket to accommodate substantive CCPCs. The following sections will calculate when you answer Yes to the new Substantive CCPC question on the Info worksheet:
  • The section for “General tax reduction for Canadian-controlled private corporations” on page 5 now calculates when a corporation is a substantive CCPC.
  • The section for “General tax reduction” on page 5 is now excluded from the calculation if a corporation is a substantive CCPC.
  • Line 604 on page 8 of the T2 jacket now calculates when a corporation is a substantive CCPC.

Schedule 5

• Line 474 for Ontario now calculates from Schedule 572.
• Minor update.

Schedule 31

• Added the following new sections:
  • Part 24—Clean technology ITC
  • Part 25—Carbon capture, utilization, and storage ITC

Schedule 60 (Part 2 of T661)

• Revised the following field of science or technology codes:
  • Code 1.06.12: Biology (theoretical, thermal, cryobiology, biological rhythm)
  • Code 4.02.02: Animal husbandry (animal biotechnology under 4.04.01)

Schedule 63

• The following lines added in the November 2023 release of TaxCycle T2 are now transmittable to the CRA: 
  • Part 10—150, 160, 170, 180
  • Part 11—350, 360, 370, 380

Schedule 65

• Minor text update.

Schedule 150

• Added new lines 264 and 288.

Schedule 151

• Minor update.

Schedule 322 (PEI)

• Minor update.

Schedule 385 (Manitoba)

• Eligible property acquired after April 11, 2017, is not eligible for this credit. Removed obsolete parts and lines accordingly.

Schedule 394

• Removed section 1 for the Manitoba refundable rental housing construction tax credit as the credit is no longer available.

Schedule 411 (Saskatchewan)

• Postponed Saskatchewan’s effective date for the application of the lower tax rate of 2% to July 1, 2025, as per Bill 157.

Schedule 444 (Yukon)

• Minor update.

Schedule 461 (NWT)

• Minor update.

Schedule 554 (Ontario)

• Removed old parts 6, 7 and 8 (lines 600, 610, 612) related to the period before April 24, 2015.

Schedule 556 (Ontario)

• Minor update.

T106

• The functional currency code field on the T106 Summary (T106S) now includes the Japanese yen (JPY) as a choice.
• Minor update.

T1134

• The functional currency code field on page 1 now includes the Japanese yen (JPY) as a choice.
• Minor update.

T1135

• The functional currency code field on page 1 now includes the Japanese yen (JPY) as a choice.
• Minor update.

Customer Request Federal Instalments worksheet

• Added the following new questions to the Federal Instalments worksheet to allow preparers to verify whether a corporation’s (and the associated corporations’) estimated taxable income and taxable capital for the current year is nil:
• In order for TaxCycle to accurately determine the instalment method (monthly or quarterly), you must provide the current year’s estimated taxable income and taxable capital amount for all associated corporations.
• The review messages on this worksheet remind you to prepare and enter the amounts. However, if the estimated amounts are nil, you can sign off on the message or disable the message for all files by clicking on the light bulb icon in the Review sidebar. 

RC4649 Country-by-Country (CbC) Report

• The purpose of the RC4649 CbC Report is to report the allocation of global income, profit, taxes paid and business activities of multinational enterprise groups (MNE groups) in the tax jurisdictions in which they operate.
• Large MNE groups with a total consolidated group revenue of €750 million or more must file the RC4649 report with the tax administration of the jurisdiction in which the ultimate parent entity (UPE) of the MNE group resides.
• To learn more about CbC reporting and filing obligations, read the CRA’s Guidance on Country-by-Country Reporting in Canada. 

Alberta AT1 Form Changes

AT1

• Added JPY to line 41.

AT1 Schedule 3

• Added new sections and fields for the Agri-processing Investment Tax Credit.

AT1 Schedule 12

• Removed lines related to eligible capital deduction (011, 010, 012, and 013) as they are no longer applicable. 

AT1Exempt Filing Exemption Checklist

• Minor update.

Québec CO-17 Form Changes

CO-1029.8.36.II and CO-1029.8.36.IK

• Updated to include changes announced in Québec’s mini budget on November 7, 2023.

Data Mining

This release adds a new Data Mining button to the Data menu in all TaxCycle modules. This new feature will allow you to run queries and identify clients that match those queries. This new feature will be available for purchase starting June 1, 2024. 

Other Updates

• T2 and Forms modules—Split the T183SER into a separate form to allow printing for paper-filing without having to print the T183SER form.
• Customer Request T4—Added Smart Copy/Paste to the T2200.
• T5013—Updated the certification for the T1134 and T1135 to October 31, 2024.
• Forms module—Added new form RC312 Reportable Transaction and Notifiable Transaction Information Return.

Resolved Issues

• RESOLVED: T4 2024—T4Summary Box 80 Excluding T4 Boxes 16A and 27A