I always get this confused, and I’ve seen it reported different ways, so I’m not sure CRA even cares, but which is the correct code to use when you have a parent-sub?
Code 1 is for “parent” but does that mean the corp for which you are preparing the T2 is the parent, or the corp you are listing on S9 is the parent?
More specifically, at the moment I am preparing a return for a parent corp. I am listing the sub on S9. Should I enter 1 or 2? (Code 2 is for subsidiary)
If you are preparing a T2 return for the Parent Corporation then the Subsidiary corporation that you list in field 100 of Schedule 9 (or in the CGI Worksheet) will have code 2 - Subsidiary.
Essentially the question is; What is the relationship of the corporation listed in field 100 of Schedule 9 to the corporation that you are preparing the T2 for and NOT what is the relationship of the corporation you are preparing the T2 for to the corporation listed in field 100 of Schedule 9.
I do realize it is a little ambiguous and the Notes don’t help.