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New T2 Schedule 141 included in May tax software updates

We understand that the CRA has released a new version of T2 Schedule 141 in the May 2022 tax preparation software updates. The new form allows CPAs to better describe their involvement in T2 preparation. We have summarized how we assume the new form will be completed for the following common engagements.

We understand that the CRA has released a new version of T2 Schedule 141 in the May 2022 tax preparation software updates. The new form allows CPAs to better describe their involvement in T2 preparation. We have summarized how we assume the new form will be completed for the following common engagements (other than for financial statement engagements, which will be dealt with in the same manner as before):

Corporate client prepares financial statements and provides them to the CPA (along with other records where applicable) for T2 preparation:

  • Answer “Yes” in box 111. Then answer box 95 and 97 from the perspective of the corporation that prepared the financial statements.
  • If the answer to box 95 is “Yes”, then go to Part 2 where box 4, “Other” should be checked off.
  • If the answer to box 95 is “No”, go to Part 4 - Other information and complete the questions
  • In Part 5, which is answered from the perspective of the CPA preparing the return, it appears that box 1 should be checked but not box 2 given that the CPA did not prepare the financial information contained therein.

Corporate client provides financial information (presumably accounting system information such as a trial balance or general ledger) but not financial statements to CPA for T2 preparation:

  • Answer “No” in box 111 and go to Part 5.
  • In Part 5, it appears that neither box should be checked as financial statements were not provided by the client and the CPA preparing the T2 did not prepare the financial information contained therein.

CPA provides bookkeeping services and prepares the T2 but does not prepare financial statements:

  • Answer “No” in box 111 and go to Part 5.
  • In Part 5, box 1 is left blank while box 2 is checked off.

At the time of writing, the new form had not been posted to the CRA’s website.