This Schedule is for CPCCs and DICs. A corporation that is a DIC must answer “yes” to the question “Is this a deposit insurance corporation as defined in subsection 137.1(5) ITA?” located under line 040 of the Corporate Identification and Other Information (Jump Code: ID) form in order for the calculations to be performed correctly in the GRIP.
The corporation can pay dividends up to the limit of the GRIP.
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A CCPC that elects not to be a CCPC for the purpose of dividends taxation must complete Schedule 54, Low Rate Income Pool Calculation (LRIP) (Jump Code: 54). A question to that effect can be found under line 040 of the ID form to allow the corporation to make this election for calculation purposes. Form T2002, Election, or Revocation of an Election, Not to Be a Canadian-Controlled Corporation must also be sent to the CRA. This form is available on the CRA Web site.
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A question has been added at the top of this schedule to allow more flexibility regarding its transmission, since not all corporations pay or are expecting to pay eligible dividends.
The Section “Eligibility for the various additions” helps you when entering data in the different applicable parts. Parts 3, 4 and “GRIP addition for 2006” will be dynamic, thus they will only display when one of the situations mentioned in the eligibility section exists.
Parts 3 and 4 are multiple parts, thus enabling you to create a Part 3 or 4 for each of the amalgamated or wound-up corporations. Remember to indicate the adjustment type in the copies of Parts 3 and 4 in order for the amounts to be correctly carried over to Part 1 of the schedule.
Part “GRIP addition for 2006” is used to determine the 2006 GRIP addition. This addition is available once only (must only be transmitted once), if a corporation was (or, but for an election under subsection 89(11), would have been), throughout its first tax year that includes any part of January 1, 2006, a Canadian-controlled private corporation. By default, this part is displayed in the corporation’s tax year that includes January 1, 2006. In the event that data from Part “GRIP addition for 2006” was never transmitted, an amended return should be filed to transmit the information to the CRA. A question has been added at the end of the history copies to display Part “GRIP addition for 2006” in a different history copy than the one that includes January 1, 2006.
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In Part “GRIP addition for 2006”, enter the appropriate amounts for each of the tax years ending in each of the concerned years (2001 to 2005). If this period includes tax years with less than 365 days, you might have to combine the tax years ending in the same calendar year. This data can be found in your client files from previous years; we recommend that you consult them to facilitate the entry of the required amounts.
Data from the preceding year might be available in the Five Year Comparative Summary (Jump Code: SUM5) depending on when the original client file was prepared. An option located at the top of Part “GRIP addition for 2006” allows you to automatically update any data available from the Five Year Comparative Summary. When this option is used, the pertinent data entry cells become calculated cells. If data already exist in one of these cells at the time this option is enabled (e.g. due to a roll forward), it will be saved as overridden data.
For any additional data you may require, you might want to refer to client files from previous years.
All amounts that were updated from previous years client files should be verified to ensure that they reflect any new contribution received or any adjustment made after the transmission of the original files.
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