If you right clik on the T2 form or the S7, and select CRA Submission view, do you see S7 in the data. You should see something like in the picture if its being transmitted.
So you are correct, S7 will not be transmitted in this case. Do you have a notice of assesment? What was the exact wording from CRA to explain that they refused the SMD ?
Sorry , I meant to write Small Business Deduction (SBD)
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