T2 Schedule 1 : Provision for income taxes Box 101

Tax Topics
1

I am really sorry if this is a stupid question.

For a T2 return, after filling the GIFI 125, the net income is calculated automatically in box 9999. After completing all other schedules, the final income tax shows up on T2 page 9 Box 770. Now coming to Schedule 1 , the first box 101 “Provision for income tax” needs to be filled up with the amount of Current Income taxes. In order to do that I go back to GIFI 125 and fill the Line 9990 using the amount from T2 page 9 Box 770. And then S1 box 101 populates automatically.

Am I way off?

2

Line 9990 on schedule 125 is the current income taxes as reported in the accounting file. It doesn’t mean is correct. This is why the total of S125 [Line 9999] shows up on line A of S1 and on S1 Line 101 is added because the taxes reported on S125 is not an actual expense that can be deducted for income tax purposes.

3

Thanks Rein.

I totally get the intention behind this treatment. Does the next step to fix the tax provision in the Accounting software using the amount from T2Box 770 and re-import the GIFI into Taxcycle?

thanks in advance for direction.

Vipul

4

Yes, exactly. And rather than scrolling down the T2 to find line 770 - just view the T2 Summary page - everything you need is shown there.

5

Yes. Agree with Nezzer.