The T2SCH10 Cumulative Eligible Capital (CEC) Deduction is incorrectly calculated for corporations with taxation years that end on or after January 1, 2017 and include December 31, 2016.
For a corporate tax year that ends on or after January 1, 2017 and includes December 31, 2016, there should be no current year cumulative eligible capital (CEC) deduction.
For a corporate tax year that ends on or after January 1, 2017 and includes December 31, 2016, there should be no current year cumulative eligible capital (CEC) deduction.
- Schedule 10, line 250
- AT1 Schedule 14, line 024
- CO-130.B (QS10), line 36
Workaround
If a corporation has a tax year that straddles 2016 and 2017, override the current year CEC deduction amounts to a value of 0 on the following:
- Schedule 10, line 250
- AT1 Schedule 14, line 024 (if applicable)
- CO-130.B (QS10), line 36 (if applicable)
Then, enter the closing CEC balance (Schedule 10, line 300) on line 201 of Schedule 8 in respect of Class 14.1.