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T2 Data Connection
Populating the required schedules when preparing T2 returns for a group of related and associated corporations is always challenging.
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Key Benefits
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Simplify and save data entry timewhen dealing with corporations that are part of a related and associated group.
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Optimize allocation by providing the key results for all the corporations of the group.
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Increase quality and simplify the review process by keeping all the information synchronized within the group.
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Main Challenges
The main challenges when preparing returns for a related or associated group are:
- Building the list of Related and Associated Corporations in each file, particularly when the group is large (i.e. > 20 corporations).
- Keeping the Related and Associated Corporations forms and schedules information synchronized in each return.
- Optimizing allocations within the group.
Solutions
The revolutionary features in Corporate Taxprep’s new T2 Data Connection answer all these challenges.
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The list of R&A corporations and the information contained in the Schedule 9 Workchart from one T2 return
can be imported into another T2 return that is part of the same group. For example, if you have a group of five
related corporations that have been entered in one of the corporation’s files, you can import that list into each of the
four other corporations’ files in a few seconds. This saves a tremendous amount of time and reduces the risk of errors
due to re-keying the same information in every file.
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The T2 Data Connection feature keeps links between all the files of a R&A Corporations group (there is still one file for
each T2 tax return). These links allow the software to flag any discrepancies between the information entered in the
Schedule 9 Workchart and the information entered in each source file. Diagnostics are displayed when the information
entered in the workchart differs from the content of each file.You can then easily synchronize the information of the
workchart by using a hot-key.
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With the standard method of working with a group of returns, it is cumbersome to calculate the impact of the
allocation for the group of returns.You need to open the related files, modify the allocation amounts in all these
files and then calculate the total impact. These steps need to be repeated each time you want to calculate another
scenario.With T2 Data Connection, the software allows you to test each allocation amount and retrieve the results for
each of the corporations in the group.You can easily create several scenarios and find the one that is optimal. By
clicking on the Calculate button, available in all the R&A schedules, the allocation amount is pushed to all the linked
returns to calculate the impact.
Additional Notes
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T2 Data Connection can be used even if the preparer doesn’t have access to all the Taxprep files for the group (i.e. if the return
has been prepared by another firm).
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The T2 Data Connection can be used for large group of corporations (i.e. more than 100 corporations).
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The T2 Data Connection is optional and returns can be prepared as before without modifying the current process.
How to use T2 Data Connection
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STEP 1 – When preparing the first return of the group, the preparer must link the source files and the workchart corporations
list that is found in the Schedule 9 workchart. This establishes the connection between all the files to enable the synchronization
and the scenario calculations. The links between the source files and the workcharts corporation list need only be done once.
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STEP 2 – For each applicable form related to corporation groups (i.e. Sch. 23, 36, O591, CO-771.1.3…) the amounts for each
corporation are allocated by using the usual method.
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STEP 3 – See the impact of the proposed allocation on all corporations (not only the filing corporation) by clicking the
"Calculate" button. This will send the allocation to each individual file and retrieve the key indicators to determine the optimal
allocation.You can then modify the allocation and test again to calculate the impact of this new scenario. By seeing the key results
for each return you can be sure you are making the best allocation.
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STEP 4 – Once the optimal allocations are determined in the first return, you can open each return in the group to import the
allocations established in the first return. All the links created between the corporations are imported at the same time.
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STEP 5 – If the information contained in some of the related and associated schedules is modified, diagnostics will identify any
discrepancies between the source files and the information contained in the workcharts. These diagnostics simplify the review
process and reduce the risk of having desynchronized data among the group of corporations.
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