The instalment schedules (Jump Codes: IFED and following schedules) allow you to calculate the instalments payable by the corporation to the various governments for the taxation year following that of the return. Moreover, these forms allow you to view the calculations that were performed to obtain the instalment base used to determine the required instalments. In the following text, we will call “previous taxation year” the year of the return and “current taxation year” the year for which the instalments are calculated. The first section of each schedule displays the corporation’s table of instalments; it is possible to print these tables without the calculations by selecting the appropriate check box in the first section of each form.
Using an Alternative Instalment Method
The program implicitly chooses the first instalment base method (except for Saskatchewan instalments for which method 2 is chosen by default), but you can select another one. The method you choose federally will automatically be selected for the applicable provincial schedules.
To use an alternative instalment method for provincial tax purposes, access the 'Indicate Instalment Method Chosen' section of the provincial instalment schedule and override the cell related to the choice of method.
Combined 1st and 2nd Instalment Base Method
For information purposes, the program calculates the instalment requirements for the 13th and 14th months (as well as the 15th month for Saskatchewan) when you choose the second instalment method (combined 1st and 2nd instalment base method).
Payments Made
Enter the amounts of any instalment payments already made by the corporation in the appropriate column in the first section of the schedule. The program will then automatically calculate the remaining payments.
Late Payments
If the corporation is late with the payment of its instalments, perform an override and enter the month in which the instalments will begin (this information is shown in the 'Indicate Instalment Method Chosen' section of each instalment schedule).
The program will not take into consideration interest charges when the dates and the late payments are entered; you should calculate this manually, if applicable.
Irregular payments
When the corporation makes irregular payments in the taxation year, you can enter zero in the Instalments paid column to report that no payment has been made. The defaulted payment amount will be added to the next payment. To delete an input amount equal to zero, use the Delete command available from the Edit menu.
Short Taxation Years
When the previous taxation year is a short year, the program will automatically provide for a 'bump up' in the calculation of the instalment base, except for Manitoba instalments where such annualization is not required.
However, if the previous taxation year is less than 183 days, you may be obliged to use a prior taxation year to calculate the instalment base, under section 5301(3) of the Income Tax Regulations or similar provincial legislation or regulation. A diagnostic will be flagged when this situation applies.
If you know that the current year is a short year, you will have to override the field “For the taxation year ended” at the top of the appropriate Instalment form(s) with the year end of this taxation year. The program will calculate the required instalment based on a short year.
Corporation’s dissolution
Please note that if you have indicated, on line 078 of Form Identification (Jump Code: ID), that this is the final tax return of the corporation as a result of its dissolution, the program will not calculate any instalment payments, because there will be no taxation year after the year of dissolution.
EDI Workcharts for Instalments
There are two instalment workcharts reserved exclusively for the use of Caisses populaires in the Form Manager. These are the Instalment EDI, Federal EDI Instalment Workchart for Credit Union (Jump Code: IF EDI) and the QC Instalment EDI, Québec EDI Instalment Workchart for Credit Union (Jump Code: IQ EDI) for Québec Caisses populaires.