Setting Up Canadian Low-Interest Loans

Canadian Company Tax Table Page

CAN_USR_TAX_TABLE1

(CAN) Identify the prescribed interest percent, province, provincial premium tax percent, and health insurance rate override for each company that you set up.

You must maintain the government's prescribed interest rate on this page.

See (CAN) Setting Up the Canadian Company Tax Table.

General Deduction Table Page

GENL_DEDUCTION_TBL

(CAN) Activate the unique calculation routines used for low-interest loans.

To activate the unique calculation routines used for low-interest loans, select the Loan Processing (Canada) check box.

See Defining General Deductions.

Deduction Table - Tax Class Page

DEDUCTION_TABLE2

(CAN) Specify deduction classifications and sales taxes applicable to deduction codes that are used for Canadian low-interest loans.

In the Deduction Classification group box, select the Taxable Benefit option.

See Defining General Deductions.

Deduction Table - Tax Effect Page

DEDUCTION_TABLE3

(CAN) Specify tax considerations for the low-interest loan deduction that you are defining.

In the Canadian Only group box, select the appropriate Canadian tax effects. Select Adds To in the following fields: Effect on QIT Gross (effect on Quebec income taxes gross), Effect on CPP Gross (effect on Canada Pension Plan gross), Effect on QPP Gross (effect on Quebec Pension Plan gross), Eff on True T4 Gross (effect on true T4 gross), Eff on True RL Gross (effect on true RL gross), and Eff on Payroll Tax Gross (effect on payroll tax gross).

See Defining General Deductions.