History from Schedules 53 and 54

Schedules 53 and 54 are multiple copy forms in which each copy (except for the first copy) contains data from previous years. This group of copies allows you to save the historical data used to calculate the balance of the general rate income pool (GRIP) calculation and the low rate income pool (LRIP) calculation for taxation years ending after December 31, 2005.

Opening balance calculation

Each copy of Schedules 53 and 54 is linked together. The opening balance in each copy of Schedules 53 and 54 is determined from the closing balance in the copy for the previous taxation year: the opening balance in the first copy is the closing balance in the second copy, the opening balance in the second copy is the closing balance in the third copy, etc.

Schedules 53 and 54 multiple copy forms allow you to modify the data from the previous taxation years within the current client file. For example, if you are preparing the return of a corporation whose current taxation year is 2007 and you need to modify the prior year Schedule 53 data as a result of a reassessment of the return for the 2006 taxation year, you can access the second copy of Schedule 53 and make the necessary corrections. The opening balance appearing in the first copy will be adjusted automatically.

Note: Modifying the history copies does not exempt you from the obligation to file the amended return again, if necessary.

Creating copies of the history when rolling forward

When a return is rolled forward, a new copy of Schedules 53 and 54 will be created automatically for the immediately prior tax year and the data from that year will be carried forward to this new copy. The first copy of Schedules 53 and 54 multiple copy forms represents the current taxation year and its contents are determined from the data in the current return. For example, in the event that you are rolling forward a corporation that is a CCPC whose last taxation year began on January 1, 2006, and ended on December 31, 2006, the data in Schedule 53 for the 2006 taxation year will be carried forward to the second copy of Schedule 53. The first copy of Schedule 53 will be used to determine the GRIP for the current taxation year (2007).

Creating copies of the history

If you would like to create copies of Schedules 53 and 54 in order to retain a history of the GRIP and the LRIP calculations on year by year basis (e.g. in the case of a new tax return), we suggest that you use the following method:

Create the number of copies required for the history.
Beginning with the oldest taxation year and ending with the most recent, enter the taxation year end in the applicable cell at the beginning of the schedule as well as any other pertinent data in each copy.
Respecting this order will prevent you from having overridden opening balances.

Example : You are preparing the return of a corporation that is a CCPC with a taxation year ending on December 31, 2009, and for which you want to create a history for Schedule 53 for the 2006 to 2008 taxation years inclusively. If you are using the suggested method, here are the steps to follow:

Create three new copies of Schedule 53
Display the fourth copy, and enter the data concerning Schedule 53 of the 2006 return.
Display the third copy, and enter the data concerning Schedule 53 of the 2007 return.
Display the second copy, and enter the data concerning Schedule 53 of the 2008 return.

The opening balance in the first copy (current year copy) will be equal to the closing balance of the previous taxation year (2008).

Notes:

Only the data on the first copy of Schedules 53 and 54 are filed with the CRA. To print copy 2 and any following copies of those multiple copy schedules, display each copy, and then press Ctrl+P. From the Form Manager, you can also select the forms that you want to print and then press Ctrl+P to print all copies.
The first copies of Schedule 53 and Schedule 54 cannot be deleted, because they are copies of the active return.