M&PProfits

Choose whether the corporation is claiming the manufacturing and processing profits deduction here.

The following options are applicable for the keyword M&PProfits.

Eligible for the deduction

Non-eligible for the deduction

PrevYr-Exempt

Use the keyword PrevYr-Exempt to indicate whether or not the qualifying M&P corporation was exempt from corporation capital tax in the previous year.

If a corporation qualifies for this exemption, no further Corporation Capital Tax Returns will be required to be filed in the future. However, if in a fiscal year beginning before Jan. 1, 2011, the percentage of M&P activities in Manitoba reduces to 50% or less, the corporation must file a Corporation Capital Tax Return for that year.

The following options are applicable for the keyword PrevYr-Exempt.

Yes

No

M&PActivity

A brief description of the corporation's manufacturing or processing activities which form the basis of the deduction claimed is requested on AT1 schedule 11 for the Alberta manufacturing and processing profits deduction.

Tobacco-M&P

Use the keyword Tobacco-M&P to indicate that the corporation is engaged in tobacco manufacturing. Tobacco manufacturing is any activity (other than farming) relating to the manufacture or processing in Canada of tobacco or tobacco products in or into any form that is, or would after any further activity become, suitable for smoking.

The following options are applicable for the keyword Tobacco-M&P.

Yes

No

Ont-M&PActivity

Use the keyword Ont-M&PActivity to indicate the type of activity in Ontario that generated eligible Canadian profits in order to determine the tax credit for M&P.

The following options are applicable for the keyword Ont-M&PActivity.

Type of manufacturing and processing income

Reg. activities only

Farming/Fishing/Logging only

Mining only

Reg. activities & Farming/Fishing/Logging

Reg. activities & Mining

Farming/Fishing/Logging & Mining

Reg. activities, Farming/Fishing/Logging, Mining

Income.m

Use the keyword Income.m to enter the amounts related to the cost of capital and the cost of labour for the specified activity in order to determine the eligible Canadian income for that activity.

The following options are applicable for the keyword Income.m.

Components to derive at income from M&P.

Cost of capital - Farming/Fishing/Logging

Cost of M&P capital - Farming/Fishing/Logging

Cost of labour - Farming/Fishing/Logging

Cost of M&P labour - Farming/Fishing/Logging

Cost of capital - Mining

Cost of M&P capital - Mining

Cost of labour - Mining

Cost of M&P labour - Mining

Mining-Profits

Use the keyword Mining-Profits to enter the mining profits under subparagraph 33(7)(2)(i) of the Taxation Act (Ontario).

Capital   

Enter the gross cost of the each of the capital types in the Capital keyword.

The following options are applicable for the keyword Capital.

Classifications of capital on schedule 27 (T2S(27)) for purposes of the manufacturing and processing capital calculation.

Depreciable prop. eligible for CCA

Gross cost of depreciable property eligible for CCA is capital cost for tax purposes before any adjustments made e.g. capitalized interest (Fed ITA sect. 21), grants, investment tax credits and sect. 80 debt forgiveness reductions. This property is included in the gross cost of property used to calculate the cost of capital on part 4 of schedule 27 (T2S(27)).

Timber limits & cutting rights

Immovable wood assets (class 15)

Industrial mineral, mines

SR&ED capital expenditures

Part XVII property

All of the above property must be included in the gross cost of property used to calculate the cost of capital on part 4 of schedule 27 (T2S(27)).

Rental cost for use of property

Enter the rental cost for the use of property which would have been included in any of the above categories of capital if this property were owned by the corporation. The amount entered will appear on part 4 of schedule 27 (T2S(27)).

Share of partnership's capital

Enter the corporation's share of partnership's capital here. This amount will appear on part 4 of schedule 27 (T2S(27)).

Manufacturing & processing capital

If no manufacturing & processing capital is entered, the total adjusted amount of capital entered in Capital will be used.

M&P capital - electrical energy corp.

Manitoba manufacturing capital costs

Manitoba capital costs

Sal&Wages   

Enter the cost of labour for each of the relevant labour types in the Sal&Wages keyword.

The following options are applicable for the keyword Sal&Wages.

Classifications of salaries and wages on schedule 27 (T2S(27)) for purposes of the manufacturing and processing labour calculation.

Total salaries & wages paid/payable

Enter the total amount of salaries and wages paid or payable during the year here. This amount will appear in part 6 of schedule 27 (T2S(27)) where the cost of labour is calculated.

Included in gross cost of property

Salaries and wages which are included in the gross cost of property entered in Capital are excluded from salaries and wages for purposes of manufacturing and processing labour. This amount will appear on line (F) in part 6 of schedule 27 (T2S(27)).

Active business outside Canada

Salaries and wages which are related to an active business outside Canada are excluded from salaries and wages for purposes of manufacturing and processing labour. This amount will appear on line (G) in part 6 of schedule 27 (T2S(27)).

Resource profit activities

Salaries and wages which are related to activities engaged in for the purpose of earning resource profits (Fed Income Tax Reg. 5202) are excluded from salaries and wages for purposes of manufacturing and processing labour. This amount will appear on line (G) in part 6 of schedule 27 (T2S(27)).

Incl. in explor. & devel. expenses

Salaries and wages which are included in the corporation's exploration and development expenses are excluded from salaries and wages for purposes of manufacturing and processing labour. This amount will appear on line (G) in part 6 of schedule 27 (T2S(27)).

Partner's share of salaries & wages

Add the corporation's share of salaries and wages related to a partnership of which the corporation is a member. This is the gross amount of salaries and wages less the same type of adjustments as made here to the corporation's own salaries and wages. This amount will appear in part 6 of schedule 27 (T2S(27)).

Manufacturing & processing labour

If no manufacturing and processing labour is entered, the total adjusted amount of salaries & wages entered in Sal&Wages will be used.

M&P labour - electrical energy corp.

Ontario manufacturing labour cost - override

Ontario labour cost - override

Manitoba manufacturing labour costs

Manitoba labour costs

OthPayments   

Enter the cost of other payments for each of the relevant other payment types in the OTHPAYMENTS keyword.

The following options are applicable for the keyword OthPayments.

Classifications of other labour payments (excluding salaries & wages) on schedule 27 (T2S(27)).

Paid - non employees, manag., admin.

Amounts paid to non employees who performed management and administration functions are included in the cost of labour. This amount will appear on line (J) in part 6 of schedule 27 (T2S(27)).

Paid - non employees, SR&ED functions

Amounts paid to non employees who performed SR&ED functions are included in the cost of labour. This amount will appear on line (J) in part 6 of schedule 27 (T2S(27)).

Paid - non employees, employee duties

Amounts paid to non employees who performed any service or function normally performed by the corporation's employees are included in the cost of labour. This amount will appear on line (J) in part 6 of schedule 27 (T2S(27)).

Included in gross cost of property

Any salaries, wages or other payments entered in the above types or in the Sal&Wages keyword which were also included in the gross cost of property entered in the Capital keyword should be entered here. This amount will be deducted from the cost of labour on line (K) in part 6 of schedule 27 (T2S(27)).

Active business outside Canada

Any salaries, wages or other payments entered in the first three types above or in the Sal&Wages keyword which relate to an active business carried on outside of Canada should be entered here. This amount will be deducted from the cost of labour on line (K) in part 6 of schedule 27 (T2S(27)).

Resource profit activities

Any salaries, wages or other payments entered in the first three types above or in the Sal&Wages keyword which relate to activities engaged in for the purpose of earning resource profits should be entered here. This amount will be deducted from the cost of labour on line (K) in part 6 of schedule 27 (T2S(27)).

Included in explor. & devel. expenses

Any salaries, wages or other payments entered in the first three types above or in the Sal&Wages keyword which are also included in the corporation's Canadian or foreign exploration and development expenses should be entered here. This amount will be deducted from the cost of labour on line (K) in part 6 of schedule 27 (T2S(27)).

Partner's share of other payments

Add the corporation's share of other payments related to a partnership of which the corporation is a member. This is the gross amount of other payments less the same type of adjustments as made here to the corporation's own other payments made. This amount will appear in part 6 on schedule 27 (T2S(27)) where it will be added to the corporation's cost of labour.

Other payments - manuf. & processing

If no manufacturing and processing other payments is entered, the total adjusted amount of other payments entered in OthPayments will be used.

Other payments - M&P electrical energy corp.

NI-Resource   

NI-RESOURCE is used to calculate the amount of net resource income excluded from active business income for purposes of manufacturing and processing profits on schedule 27 (T2S(27)).

The following options are applicable for the keyword NI-Resource.

Net resource income adjustments required on schedule 27 (T2S(27)).

Resource profits incl. in partner's share

Resource profits are, as defined in Fed Income Tax Reg. 1204, from a Canadian active business. Include the corporation's share of resource profits earned by a partnership of which the corporation is a member in the amount entered here. This amount will appear in part 8 of schedule 27 (T2S(27)).

Additions to income per ITA 59

Amounts added to income under ITA section 59 are added to resource profits in part 8 on schedule 27 (T2S(27)).

Deductions from income per ITA 65

Amounts deducted from income under ITA section 65 are deducted from resource profits in part 8 on schedule 27 (T2S(27)).

Income from foreign ore processing

Resource profits from the processing in Canada of ore and tar sands from foreign resources are eligible for the manufacturing and processing deduction. This is subject to transitional measures, from 1990 until 1999; see Fed Income Tax Regs 5202 and 5203.

Net resource adjustment per Reg. 5203(3.1)

Refund interest per Reg. 5203(4)

Refund interest as defined in Regulation 5203(4).

Prescribed resource loss

Percentage of prescribed resource loss.

M&PProfitsOV   

M&PPROFITSOV will override manufacturing & processing (M & P) profits eligible for the M & P deduction.

When the M & P profits relating to a particular province which grants the deduction (Newfoundland and Labrador, Ontario, Alberta and the Yukon) differs from the federal amount, use this override. Differences may occur if the definition of eligible M & P activities is different federally and provincially.

If no override is entered, DT Max will calculate the provincial M & P profits as the Federal amount multiplied by the percentage of taxable income allocated to the relevant province. For Ontario, eligible Canadian profits, the basis of the M & P Profits credit, will be calculated as equal to total active business income (for qualifying corporations) or on schedule 27-Ont (T2S(27)-Ont). Use [Alt-J] to enter different values for other jurisdictions.