Corporate Tax Continuity Worksheet

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Richard Ball
6 years ago
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1 Worksheet This worksheet reconciles CRA to tax amounts, and determines the current tax provision. Your client s situation: Tax year end Dec 31, 2016 Opening tax o Dec 31, 2015 (15,000) - payable from prior year filing o Dec 31, ,000 - refund from capital loss carryback 2015 assessment o Total federal taxes 25,000 o Net provincial taxes 10,000 o Instalments paid 20, reassessment (in current tax year) o Total federal taxes 45,000 o und interest assessment (in previous tax year) o Total federal taxes 55,000 Payments (received) paid during the tax year o Payment (refund) related to ,000 o Payment (refund) related to 2014 (10,500) 2016 corporate tax return o Total tax payable 25,000 o Instalments paid in ,000 o Taxable credit entitled 5,000 Reconcilie the tax provision amounts, and determine applicable journal entries for the year. TTI helps you provide quick and effective tax planning and tax accounting solutions for your clients. sales@taxtemplates.ca

2 December 31, 2016 Date Tax year end T2 - Line 061 Dec 31, 2016 o Tax year start T2 - Line 060 Jan 1, 2016 Journalized tax balances Opening income tax for tax year ended Income tax Unrealized events with accruals unds held back Adjusted income tax Dec 31, 2015 (15,000) (15,000) Dec 31, ,000 8,000 Dec 31, Dec 31, Dec 31, Total (7,000) o (7,000) Opening for tax year ended Unrealized events with accruals unds held back Adjusted Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Total - o -

3 December 31, 2016 (Re)assessments between January 1, 2016 and December 31, 2016 Dec 31, 2015 Dec 31, 2014 Assessment / reassessment / interest only Assessment o Reassessment Debited (credited) to equity - refundable taxes Debited (credited) to equity - dividend refund Debited (credited) to income statement - taxable credits, excluding R&D As per current (re)assessment Dec 31, 2015 Dec 31, 2014 Event date undable Part I Tax Total / sum of federal taxes 25,000 o 45,000 Net provincial and territorial tax (credit) 10,000 (Investment Tax Credit refund) (Other credits) (Taxable credits only, excluding R&D) (Instalments and payments) (20,000) Reversal of (refund interest) (500) Reversal of (refund interest) GL - (Reversal of) interest and penalties (Reversal of) interest and penalties GL As per previous (re)assessment Dec 31, 2014 Event date undable Part I Tax Total / sum of federal taxes 55,000 Net provincial and territorial tax (credit) (Investment Tax Credit refund) (Other credits) (Taxable credits only, excluding R&D)

4 December 31, 2016 Tax effects from - journal entry Account Debit (credit) Adjustment Adjustment Adjustment Adjustment Adjustment Adjustment Adjustment Adjustment Income tax 2,500 o Income tax provision (2,000) undable taxes paid - Dividend tax refund - Investment Tax Credit - Reduction of R&D expenses / R&D income - Reduction of other expense accounts / other income - Interest income (500) Interest and penalties expense - Adjustment - Adjustment - Reconciliation of prior year tax balances Reconciliation - income tax Adjusted income tax 2015 Increase to income tax Current year net interest receivable (payable) unds held back Total amount paid (refunded) Income tax from loss carrybacks or other adjustments Ending income tax 2016 Dec 31, 2015 (15,000) - 15,000 - Dec 31, ,000 2, (10,500) - Dec 31, Dec 31, Dec 31, Total (7,000) 2, ,500 o - o Reconciliation - R&D Adjusted 2015 Increase to Current year net interest receivable (payable) unds held back Total amount paid (refunded) from loss carrybacks or other adjustments Ending 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Total o - o

5 December 31, 2016 Tax provision (recovery) - Dec 31, 2016 tax year Tax return input - Dec 31, 2016 tax year undable portion of Part I tax Total tax payable T2 - Line 450 Sch 3 - Line 360 T2 - Line ,000 (und of Investment Tax Credit) Sch 31 - Line 560 Sch 31 - Line 610 T2 - Line 784 (Instalments paid on or before Dec 31, 2016) (18,000) T2 - Line 840 (Instalments paid after Dec 31, 2016) (Total credits) T2 - Line 890 (23,000) o (Taxable credits, excluding R&D credits for Dec 31, 2016) (5,000) Type of adjustment Estimated income taxes Estimated R&D credits Increase (decrease) to refundable taxes paid (Increase) decrease to dividend refund (Increase) decrease to expense reduction / other income Taxes from loss carrybacks or other adjustments o Account Tax provision (recovery) - journal entry Debit (credit) Adjustment Financial statement integration Tax year components - Dec 31, 2016 Account Balance Income tax (20,000) o - Income tax (2,000) o (2,000) 22,500 Income tax provision 25,000 Income tax provision 23,000 25,000 undable taxes paid - undable taxes paid Dividend tax refund - Dividend tax refund Investment Tax Credit Investment tax credit Reduction of R&D expenses / R&D income - Reduction of R&D expenses / R&D income Reduction of expenses / other income (5,000) Reduction of expenses / other income (5,000) (5,000) Adjustment - Interest income from taxes (500) Adjustment - Interest and penalties expense - Balance Net payments (refunds)

Corporate Tax Scenario Worksheet

Corporate Tax Scenario Worksheet This worksheet projects corporate tax outcomes for CCPCs or other private corporations, and provides visual summaries. Your client s situation: Corporate inputs o Tax province