Schedule 5, Tax Calculation Supplementary (corporations)

Calculated Percentages

Even when there is no taxable income (e.g., a corporation with a non-capital loss), the gross revenue and salaries and wages determine the allocation percentage. This percentage is used to calculate the provincial capital tax liability.

Permanent Establishments

When you enter gross revenue or salaries and wages, an X will appear in the permanent establishment field for that province. Enter an X manually for provinces where the corporation has no activity but it maintains a permanent establishment.

Provincial Credit Forms

Several of the less common provincial credit forms are not included in the program. In these cases complete the provincial credit form manually and enter the credit amount in the input cell provided in Schedule 5. Attach the provincial credit schedule to your return.

Regulation

The following instructions are taken from the form.

• Use this schedule if, during the tax year, the corporation:
• had a permanent establishment in more than one jurisdiction (corporations that have no taxable income should only complete columns A, B, and D in Part 1),
• is claiming provincial or territorial tax credits or rebates (see Part 2), or
• has to pay taxes, other than income tax, for Newfoundland and Labrador, or Ontario (see Part 2).
• All legislative references are to the Income Tax Regulations.
• For more information, see theT2 Corporation – Income Tax Guide.
• For the regulation number to be entered in field  100 of Part 1, see the chart below.

Regulation	Type of corporation	Type of entry in column B	Type of entry in column D
402	Corporations not specified	Salaries and wages	Gross revenue
403	Insurance corporations	No entry required	Net premiums
404	Banks	Salaries and wages	Amount of loans and deposits
404.1	Federal credit unions	Salaries and wages	Amount of loans and deposits
405	Trust and loan corporations	No entry required	Gross revenue
406(1) *	Railway corporations	Equated track miles/kilometres	Gross ton miles/kilometres
406(2) *	Railway corporations **	The method of allocation depends on the business line - see the proper regulation.
407	Airline corporations	Capital cost of fixed assets ***	Revenue plane miles/kilometres ****
408	Grain elevator operators	Salaries and wages	Bushels of grain received
409	Bus and truck operators	Salaries and wages	Miles/kilometres driven
410 *****	Ship operators	Salaries and wages ******	Port-call-tonnage
411	Pipeline operators	Salaries and wages	Miles/kilometres of pipeline
412	Divided businesses	The method of allocation depends on the business line - see the proper regulation.
413	Non-resident corporations	The method of allocation depends on the business line - see the proper regulation.

*	Enter brackets when completing field 100 in Part 1 for this regulation.
**	Operating an airline service, ships, hotels, or receiving substantial revenues from petroleum or natural gas royalties.
***	Exclude aircraft.
****	Exclude miles/kilometres flown over the territorial waters of Canada.
*****	In Part 1, instead of taxable income, use the excess of taxable income over allocable income for the calculation in column C and allocable income for the calculation in column E.
******	Only where taxable income exceeds allocable income.