Sch 141 in T2

T2
1

Hi everyone,

I have a question regarding Sch 141 in T2. There are some new questions added by the CRA in this schedule. The question is:

Part 1: Information on the person primarily involved with the financial information

  • Can you identify the person* specified in the heading of Part 1?..Yes/No

What should you select if you are just preparing the tax return for the client with a few adjusting entries? Bookkeeping is done by the client. What exactly does the word “identify” mean in the heading?

Your help is really appreciated. Thank you

2

great question. i have wondering this as well.
i prepare financial statements, adjusting entries and tax returns -

3

Not sure what the issue is. The question is: can you (the signer of the document) ID the person “primarily involved with the financial information”?

The return is entitled the General Index of Financial Information (GIFI) - Additional Information.

So the “primarily involved with” relates to the financial information provided in the GIFI as defiined in the asterisked portion below (ie 50% or more).

Yes. It’s stupid, but CRA was never known for being smart.

(I’ll admit I had to read the whole thing several times to make sure I was interpreting it correctly when I first saw it…and it is highly ambiguous as to what one’s involvement is if just providing financials and others are doing all the base work. One could easily argue that a company that spent thousands of hours on bookkeeping is >50% responsible and you, as the accountant, only spent 10 hours assembling it…)

4

It means can you identify the person primarily involved with the financial data to which income tax is ultimately being calculated on.

Part 1 - Information on the person primarily involved with the financial information

The schedule also cites examples;

  • A person primarily involved with the financial information is a person who has more than a 50% involvement in preparing the financial information that the T2 return is based on. For example, if three persons prepared the financial information by doing respectively 30%, 30%, and 40% of the work, answer no at line 111. If they did respectively 10%, 20%, and 70% of the work, answer yes at line 111 and complete part ! by referring only to the third person.

Clear as mud?

Without saying this is a good or bad thing, I’m guessing it’s the CRA’s way of trying to figure out whether the majority of the work actually done on the file was performed by a designated accountant or not. In typical government fashion they just made a mess of the form and made it more confusing. :grinning:

3 Likes
5

hi ayisha_f- I had the same question and just saw your post…

So what did you end up selecting for a client where bookeeping is done by the client and you just did the tax return?

Im finding this update to the schedule so confusing…