Corporate Taxpayer Summary

The Corporate Taxpayer Summary (Jump Code: SUM) is a useful two-page synopsis of the federal and provincial returns. It contains such information as federal and provincial carryforward balances, and income and capital tax amounts, etc. A Corporate Taxpayer Summary for the last five years is also provided.

A Corporate Taxpayer Summary may be useful in the following situations:

  • a comparison of summaries for different "what-if" scenarios can highlight the effect of changes on a corporation's situation;
  • summaries from successive re-runs of a return can be compared to ensure that only intended changes occurred;
  • the corporate taxpayer summary can provide the client with an overview of his or her tax position without having to refer to items throughout the return;
  • clients may find the corporate taxpayer summary useful as a tool for reviewing the accuracy of their returns;
  • a copy of the corporate taxpayer summary, appropriately appended with comments, could be given to the client to serve as a reminder of information to be gathered and/or deductions to be made throughout the current taxation year.

The "Total amount due (refund) federal and provincial" line in the "Corporate information" part, contains the following information:

  • Balance due or federal and provincial refund – T2
  • Balance due or Québec refund – CO-17
  • Québec logging tax payable
  • Balance due or Alberta refund – AT1
  • British Columbia logging tax payable
  • Manitoba Income tax payable – Credit Unions and Caisses Populaires Tax Return
  • Saskatchewan capital tax payable
  • Prince Edward Island capital tax payable
  • Newfounland and Labrador capital tax payable
  • Manitoba capital tax payable

Detailed listing of  "Other" lines contents

Note: The information on the following lines is with reference to Schedule 200, T2 Corporation Income Tax Return.

The "Abatement/Other" line in the "Credits against Part I tax" part, contains the following information:

  • Federal tax abatement, line 608
  • Investment corporation deduction, line 620
  • General tax reduction for CCPCs from amount I on page 5, line 638
  • General tax reduction from amount P on page 5, line 639
  • Federal logging tax credit from Schedule 21, line 640
  • Eligible Canadian bank deduction under section 125.21, line 641
  • Federal qualifying environmental trust tax credit, line 648

The "Other" line in the "Summary of tax" part, contains the following information:

  • Part IV.1 tax payable from Schedule 43, line 716
  • Part VI tax payable from Schedule 38, line 720
  • Part VI.1 tax payable from Schedule 43, line 724
  • Part VI.2 tax payable from Schedule 67, line 725
  • Part XIII.1 tax payable from Schedule 92, line 727
  • Part XIV tax payable from Schedule 20, line 728

The "Other" line in the "Refunds/credits" part, contains the following information:

  • Federal capital gains refund from Schedule 18, line 788
  • Federal qualifying environmental trust tax credit refund, line 792
  • Return of fuel charge proceeds to farmers tax credit, from Schedule 63, line 795
  • Canadian film or video production tax credit (Form T1131), line 796
  • Film or video production services credit (Form T1177), line 797
  • Canadian journalism labour tax credit from Schedule 58, line 798
  • Air quality improvement tax credit from Schedule 65, line 799
  • Tax withheld at source, line 800
  • Provincial and territorial capital gains refund from Schedule 18, line 808
  • Provincial and territorial refundable tax credits from Schedule 5, line 812

The Section "Summary – taxable capital" allows you to display the taxable capital amount of the filing corporation and associated or related corporations and to see how it is used. Note that, in this section, only the appropriate columns are completed, according to the province(s) where the corporation has a permanent establishment and based on tax measures listed below for which the corporation qualifies.

The Federal table in the "Summary – taxable capital" section contains the following information:

  • Column Taxable capital used to calculate the business limit reduction (T2, line 415):
  • If, in both the particular taxation year and the preceding taxation year, the filing corporation is not associated with any other corporation, the taxable capital employed in Canada for the preceding year is used to calculate the business limit reduction.
  • If, in the particular taxation year, the filing corporation is not associated with any other corporation, but was associated with one or more corporations in the preceding taxation year, the taxable capital employed in Canada for the particular year is used to calculate the business limit reduction.
  • If, in the particular taxation year, the filing corporation is associated with one or more corporations, the total taxable capital employed in Canada in the filing corporation’s and the associated corporations’ preceding year is used to calculate the business limit reduction.
  • For more details, refer to the Schedules 23 and 49, Agreement Among Associated Corporations help topic.
  • Column Taxable capital used to calculate the SR&ED expenditure limit for a CCPC (Schedules 31 and 49): The total taxable capital employed in Canada of the filing corporation’s and the associated corporations’ preceding year is used to calculate the SR&ED expenditure limit. For more details, refer to the Schedules 23 and 49, Agreement Among Associated Corporations help topic.
  • Column Taxable capital used to calculate line 233 of the T2 return: The total taxable capital employed in Canada in the filing corporation’s and the related corporations’ particular year is used, among other things, to determine whether or not the filing corporation is a large corporation. For more details, refer to the T2 Corporation – Income Tax Guide.
  • Column Taxable capital used to calculate line 234 of the T2 return: The total taxable capital employed in Canada in the filing corporation’s and the associated corporations’ particular year is used, among other things, to determine whether or not the corporation is eligible to remit quarterly instalments. For more details, refer to the Federal Tax Instalments help topic.

The Québec table in the "Summary – taxable capital" section contains the following information:

  • Column Paid-up capital used to calculate the Québec business limit reduction (CO-771) and the additional deduction for transportation costs of remote manufacturing SMEs (CO-156.TR): The total paid-up capital in the filing corporation’s and the associated corporations’ preceding year is used to calculate the business limit reduction as well as the additional deduction for transportation costs of remote manufacturing SMEs. For more details, refer to the Guide d’aide au calcul du capital versé (available in French only).
  • Column Paid-up capital used to calculate the tax credit for investment (CO-1029.8.36.IN) and to determine the applicability of Form CO-1029.8.33.TE: The total paid-up capital in the previous taxation year of the filing corporations and associated corporations is used to calculate the reduction of the increase in the basic rate and the refundable portion of the tax credit, and is also used to answer the question Is the paid-up capital1 determined for the preceding taxation year, including that of members of an associated group less than $15 millions, which is located at the top of Form CO-1029.8.33.TE. For more details, refer to the Guide d’aide au calcul du capital versé (available in French only).
  • Column Paid-up capital used to calculate the 1 million deduction (CO-1137.A): The total paid-up capital in the filing corporation’s and the associated corporations’ preceding year is used to determine whether or not the corporation is eligible for the 1 million deduction. For more details, refer to the Guide d’aide au calcul du capital versé (available in French only).

The Ontario table in the Summary – taxable capital section contains the following information:

  • Column Specified capital used to calculate the expenditure limit − Ontario innovation tax credit (Schedule 566): The total qualified capital employed in Canada in the filing corporation’s and the associated corporations’ preceding year is used to calculate the amount of expenditure limit allocated for the Ontario innovation tax credit.

The Alberta table in the Summary – taxable capital section contains the following information:

  • Column Taxable capital used to calculate the Alberta innovation employment grant (Schedule A29) The total taxable capital employed in Canada of the filing corporation’s and the associated corporations’ preceding year is used on line 126 of the AT1 Schedule 29 to calculate the grant.

The Other provinces table in the section Summary – taxable capital section contains the following information:

  • Column Capital used to calculate the Newfoundland and Labrador capital deduction on financial institutions (Schedule 306): The total capital employed in Canada in the filing corporation’s and related corporations’ particular year is used to determine the filing corporation’s eligibility to the allocation of capital deduction on financial institutions. For more details, refer to the Schedules 305-306, Newfoundland and Labrador Capital Tax on Financial Institutions help topic.
  • Column Capital used to calculate the Nova Scotia basic capital deduction on financial institutions (Schedule 353): The total capital for the year in the filing corporation’s and related corporations’ particular year is used to determine the filing corporation’s eligibility to the allocation of the basic capital deduction on financial institutions. For more details, refer to the Schedules 352-353, Nova Scotia Financial Institutions Capital Tax help topic.