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Ontario T2 returns calculating Total ECP when corporation is not entitled to this credit

SOLVEDby IntuitUpdated 1 year ago

For Ontario T2 returns, ProFile is incorrectly calculating Total ECP (line 075 in Part 2 of schedule 502) and, if applicable, Ontario tax credit for manufacturing and processing (line H of Part 2 in schedule 502), when a corporation is not entitled to the credit. As a result, ProFile may submit data to the CRA from schedule 502 when schedule 502 is not needed.

If your T2 return contained the above error and was submitted to the CRA, the CRA will not reject the tax return. The return will be accepted and processed. The CRA will appropriately adjust schedule 502 and, if applicable, will disallow the Ontario tax credit for manufacturing and processing to agree with their calculation.

If the corporation does not have a claim for the Ontario tax credit for manufacturing and processing, simply override line 075 in Part 2 of schedule 502 to zero. In all other cases, review schedule 502 and override as needed.

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