**** READ ME **** AvanTax Auto 2018 Version 2018.1.2 January 7, 2019 INSTALLING AVANTAX ================== If you are installing from a CD,insert the CD and wait a few seconds for the Setup program to start up. If it does not start automatically, run d:SETUP.EXE (replacing d: with the drive letter of your CD drive. Follow the on-screen instructions. NETWORK INSTALLATION ==================== To run AvanTax on multiple PCs over a network, install AvanTax on each PC, selecting the same network drive and directory for the location each time. The program and supporting files will be written to the network drive, and the additional components (.DLL and .OCX files) will be installed on each PC in the appropriate directories. STARTING AVANTAX ================ The installation process will add AvanTax to your Start menu. Select AvanTax from the Programs group to start the program. REGISTERING AVANTAX =================== The unregistered program will allow only one company record, one employee record, and one vehicle record. To register AvanTax click on the Registration button on the Welcome window that appears when you start AvanTax. Enter the authorization number you have been received from ELM Computer Systems. Once the program has been registered, the welcome window will no longer appear at startup. BRINGING FORWARD YOUR PRIOR YEAR'S DATA ======================================= Data from the prior year's release of AvanTax will be automatically brought forward into the current year's program if you install the new version in the same location as the previous year's. However, if you install the new program in a different location you can still bring the data forward using the menu item File/Bring Forward Previous Year Data. Follow the on-screen instructions. Permanent data (company and employee information, vehicle descriptions, and dates available and returned) will always be brought forward. You will also be given the option to bring forward the planning data (kilometres, days available, and reimbursements) you entered in the prior year's program. PROGRAM REVISION HISTORY ======================== Version 2018.1.2, January 7, 2019 1. On December 27, 2018 the Finance Minister announced that the rate used to calculate the operating cost benefit will be increased by 2 cents to 28 cents per kilometre, and for taxpayers employed principally in selling or leasing automobiles, the prescribed rate is also increased by 2 cents to 25 cents per kilometre. These changes are reflected in this version of AvanTax Auto for "next year", i.e. 2019. 2. For employers in Ontario designated as large businesses required to recapture ITC's the rate at which remittable HST is calculated for the standby charge benefit is 12/112 for vehicles purchased after June 30, 2018. This is the same rate as used for small and medium sized businesses, since the difference in the rate for large businesses has been entirely phased out. This change has been implemented in this version of AvanTax Auto. Version 2018.1.1, October 18, 2018 1. For employers in Ontario and PEI designated as large businesses required to recapture ITCs, there are changes to the rate at which remittable HST is calculated. For Ontario the applicable rates are now 10/110 for standby charge benefit and 8.4% for operating cost benefit. For PEI the applicable rates are now 6.5/106.5 for standby charge benefit and 7.8% for operating cost benefit. Version 2017.1.2, January 2, 2018 1. On December 22, 2017 the Finance Minister announced that the rate used to calculate the operating cost benefit will be increased by 1 cent to 26 cents per kilometre, and for taxpayers employed principally in selling or leasing automobiles, the prescribed rate is also increased by 1 cent to 23 cents per kilometre. These changes are reflected in this version of AvanTax Auto. Version 2017.1.1, September 1, 2017 1. Sales tax changes have been implemented as follows: * On March 23, 2017, the PST rate in SK increased from 5% to 6%. This change has been implemented for the entire 2017 year, therefore manual entry of sales tax may be required for 2017. 2. On December 30, 2016 the Finance Minister announced that the rate used to calculate the operating cost benefit will be reduced by 1 cent to 25 cents per kilometre, and for taxpayers employed principally in selling or leasing automobiles, the prescribed rate is also reduced by 1 cent to 22 cents per kilometre. These changes are reflected in this version of AvanTax Auto. Version 2016.1.1, September 16, 2016 1. Sales tax changes have been implemented as follows: * On July 1, 2016, the HST rate in NF and NB increased from 13% to 15%. These changes have been implemented for the entire 2016 year, therefore manual entry of sales tax may be required for 2016. * On October 1, 2016, the HST rate in PE will increase from 14% to 15%. This change has not been implemented for the 2016 year, so manual entry of sales tax may be required for 2016. 2. On December 24, 2015 the Finance Minister announced that the rate used to calculate the operating cost benefit will be reduced by 1 cent to 26 cents per kilometre, and for taxpayers employed principally in selling or leasing automobiles, the prescribed rate is also reduced by 1 cent to 23 cents per kilometre. These changes are reflected in this version of AvanTax Auto. Version 2015.3.1, January 14, 2016 1. Corrected the maximum days available for 2016 to 366 days. Version 2015.2.1, December 21, 2015 1. Resolved an issue which could cause an incorrect calculation of the taxable benefit for "combined vehicles" on the employee data entry window. Version 2015.1.1, September 14, 2015 1. This is the initial 2015 version which can be used for calculations for both 2015 ("current year") and 2016 ("planning year"). 2. It is now possible to designate a business as a large business that is required to recapture ITCs. This changes the rate at which remittable HST is calculated for employees whose province of employment is set to Ontario or PEI. The applicable rates: 4/104 for standby charge benefit (both provinces), and for operating cost benefit, 6.6% for Ontario and 6.5% for PEI. 3. On December 23, 2014 the Minister of Finance announced that the rate used to calculate the operating cost benefit will remain unchanged for 2015 at 27 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate will remain unchanged at 24 cents per kilometre. 4. Sales tax changes have been implemented as follows: * On January 1, 2016, the HST rate in Newfoundland will increase from 13% to 15%. Version 2014.1.1, September 16, 2014 1. This is the initial 2014 version which can be used for calculations for both 2014 ("current year") and 2015 ("planning year"). 2. On December 30, 2013 the Minister of Finance announced that the rate used to calculate the operating cost benefit will remain unchanged for 2014 at 27 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate will remain unchanged at 24 cents per kilometre. 3. Sales tax changes have been implemented as follows: * On July 1, 2014, the HST rate in PEI will decrease from 15% to 14%. 4. The factors used to calculate the Net Remiittable GST have been updated to reflect current legislation for several provinces and territories. Version 2013.1.2, December 12, 2013 1. The January 1, 2013 change to Quebec's QST rate from 9.5% to 9.975% was incompletely implemented in the 2013.1.1 release. The Net Remittable QST report was in error in the amount included in the standby charge. This has been corrected. Version 2013.1.1, August 28, 2013 1. This is the initial 2013 version which can be used for calculations for both 2013 ("current year") and 2014 ("planning year"). 2. On December 28, 2012 the Minister of Finance announced that the rate used to calculate the operating cost benefit will increase for 2013 by 1 cent to 27 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate will increase by 1 cent to 24 cents per kilometre. 3. Note: Sales tax changes have been implemented as follows: * On April 1, 2013, BC scrapped the HST and reintroduced PST at a rate of 7%. * On April 1, 2013, PE introduced HST in place of GST/PST. The combined rate is 14%. * On January 1, 2013, Quebec's QST rate changed from 9.5% to 9.975%. The QST is now calculated excluding the GST, so the total amount of tax is unchanged. * On July 1, 2013, the PST in MB increased from 7% to 8%. Version 2012.1.1, May 31, 2012 1. This is the initial 2012 version which can be used for calculations for both 2012 ("current year") and 2013 ("planning year"). 2. On December 29, 2011 the Minister of Finance announced that the rate used to calculate the operating cost benefit will increase for 2012 by 2 cents to 26 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate will increase by 2 cents to 23 cents per kilometre. 3. Note: Sales tax changes are expected for PEI and BC, both on April 1, 2013. Version 2011.1.2, December 20, 2011 1. This version corrects an error in the Net Remittable QST report for the 2011 taxation year. The QST on the standby charge benefit is now correctly calculated at 8.5/108.5, and the QST on the operating costs benefit at 5.4%. 2. The QST rate is increasing from 8.5% to 9.5% effective January 1, 2012. This change has been incorporated in the calculation of QST on the cost of vehicles. 3. The January 1, 2012 increase to the QST rate affects the Net Remittable QST report. For the 2012 taxation year, the QST on the standby charge benefit will be calculated at 9.5/109.5, and the QST on the operating costs benefit at 6%. Version 2011.1.1, October 3, 2011 1. The program has been updated to handle 2011 as the current year and 2012 as the planning year. Version 2010.1.2, January 13, 2011 1. The QST rate has been changed from 7.5% to 8.5%. 2. The calculation of the GST/HST deemed to be included in the standby charge and operating cost has been updated to account for the new rates in Ontario, BC and Nova Scotia. This affects the Net Remittable GST-HST report. 3. On December 29, 2010 the Finance Minister announced that the 2011 prescribed rates for calculating the operating cost benefit are unchanged from the 2010 rates. Version 2010.1.1, June 1, 2010 1. The tax rates for Ontario and British Columbia have been changed to account for the changeover from GST and PST to HST. 2. The changes for the 2010 tax year due to the harmonization of PST and GST, have been extended to British Columbia (see notes for version 2009.1.1 below). Version 2009.1.2, February 9, 2010 1. The Calculate Tax button on the Vehicle Information screen now calculates Quebec sales tax correctly whether previously calculated or not. 2. Program path added to Help / About window. 3. On December 31, 2009 the Finance Minister announced that the 2010 prescribed rates for calculating the operating cost benefit are unchanged from the 2009 rates. Version 2009.1.1, September 30, 2009 1. In its budget of March 26, 2009 the Government of Ontario announced the harmonization of PST and GST effective July 1, 2010. The following changes to the program have been made: a) For purchased vehicles, you may now enter the PST rate, as well as the GST/HST rate, actually paid. When you click the Calculate Tax button, the rates you enter will be used to calculate the taxes. b) For leased vehicles, the two taxes are automatically calculated for the 2010 tax year (the "Planning Year") based on the number of days before and after July 1, 2010. For example, if a leased vehicle is available from January 1, 2010 through July 30, 2010, the effective GST/HST rate is calculated as follows: 0.05 x [days before July 1] / [total days] + 0.13 x [days since July 1] / [total days] or, 0.05 x 181 / 211 + 0.13 x 30 / 211 or, 6.14% The prorated percentage is used to calculate the GST/HST on the lease for the 2010 planning year. A similar calculation is done for PST. We recognize that the resulting tax amounts may not be exactly what was paid because the timing of when vehicles are made available and returned may not correspond to the timing of the lease payments, but the difference in the resulting taxable benefits is negligible. 2. In December 2008 the Finance Minister announced that the 2009 prescribed rates for calculating the operating cost benefit are unchanged from the 2008 rates. Version 2008.1.1, September 30, 2008 - 1. In December 2007 the Finance Minister announced that the 2008 prescribed rates for calculating the operating cost benefit are as follows: General rate: 24 cents per km Rate for employees selling or leasing cars: 21 cents per km 2. A new version of AvanTax, AvanTax Plus, is now available with all the features of the Network version plus data import and export capabilities. Version 2007.1.4, January 9, 2008 1. The calculation of QST in the Net Remittable QST report has been corrected. For 2008, the rate set by Revenu Quebec for operating costs is now 4.7%. Version 2007.1.3, January 2, 2008 1. Following the GST rate reduction to 5% (13% in HST provinces), the tax rates have been adjusted. The "Calculate Tax" button on the Vehicle entry window will now calculate GST for 2007 at the old rate, and for 2008, at the new rate. 2. The calculation of GST in the Net Remittable GST report has been modified to use new factors in calculating the tax included in the standby charge and operating cost components of the taxable benefit. For 2008, the rate for operating costs is 3% for GST and 9% for HST. For the standby charge, the rate is 4/104 for GST and 12/112 for HST. Version 2007.1.2, November 13, 2007 1. A numeric overflow error in the Employee and Vehicle List has been corrected. Version 2007.1.1, September 15, 2007 - 1. On December 27, 2006 the Finance Minister announced that the 2007 prescribed rates for calculating the operating cost benefit are unchanged. The rates for 2007 are as follows: General rate: 22 cents per km Rate for employees selling or leasing cars: 19 cents per km 2. The employee list report now includes totals of all numeric columns to assist with checking your data entry. 3. A new function has been added to the File menu, Copy Current Year Data to Planning Year. It will populate the planning year fields with the total and personal kilometres and, optionally, the reimbursement values for all vehicles that are not returned as of the end of the year. 4. The optional calculation method for calculating the operating cost taxable benefit has been corrected. If the standby charge is zero (for example, if the vehicle is owned by the employee), the optional calculation will not apply. Version 2006.1.2, December 15, 2006 - 1. The Net Remittable QST report for the 2006 taxation year has been modified to use the correct factor for calculating the tax included in the operating cost component of the taxable benefit. The rate has been reduced from 5.7% to 5.5%. (Finances Québec Information Bulletin 2006-2, June 29, 2006) Version 2006.1.1, September 7, 2006 - Following an announcement by the Finance Ministry that the GST/HST rates will be reduced effective July 1, 2006, the following changes to the program have been made: 1. The calculation of the GST/HST on the purchase or lease price of vehicles has been changed. For purchased vehicles, you may now enter the GST/HST rate actually paid (7%/15% or 6%/14%). When you click the Calculate Tax button, the rate you enter will be used to calculate the GST/HST. For leased vehicles, the GST/HST is automatically calculated for the 2006 tax year (the "Planning Year") based on the number of days before and after July 1, 2006. For example, if a leased vehicle is available from January 1, 2006 through July 30, 2006, the effective GST rate is calculated as follows: 0.07 x [days before July 1] / [total days] + 0.06 x [days since July 1] / [total days] or, 0.07 x 181 / 211 + 0.06 x 30 / 211 or, 6.86% For HST provinces, an equivalent calculation is done using 0.15 and 0.14. The prorated percentage is used to calculate the GST/HST on the lease for the 2006 planning year. We recognize that the resulting GST/HST amount may not be exactly what was paid because the timing of when vehicles are made available and returned may not correspond to the timing of the lease payments, but the difference in the resulting GST/HST is negligible. 2. The Net Remittable GST/HST report for the 2006 taxation year now uses different factors for calculating the tax included in the standby charge and operating cost components of the taxable benefit. For 2006, the rate for operating costs is 4.5% for GST and 10.5% for HST. For the standby charge, the rate is 5.5/105.5 for GST and 13.5/113.5 for HST. (Note: the rates will change again for the 2007 taxation year.) Version 2005.1.2, January 9, 2006 - 1. Following an announcement by the Finance Ministry that the 2006 prescribed rates for calculating the operating cost benefit have been changed, the program has been updated accordingly. The rates for 2006 are as follows: General rate: 22 cents per km Rate for employees selling or leasing cars: 19 cents per km Version 2005.1.1, September 29, 2005 - 1. The prescribed rates for calculating the operating cost benefit for 2005 have been set as follows: General rate: 20 cents per km Rate for employees selling or leasing cars: 17 cents per km The rates for 2006 have been set to the 2005 values since no rate changes have yet been announced by either the federal or Quebec governments. 2. No legislative changes that would affect standby charge or operating cost calculations have been announced. 3. The Help and User Guide have been upda ted. For the 2004 version, the following changes were made: 1. Fixed bug that caused error when "Companies" heading was clicked in the list of companies. 2. Following an announcement by the Finance Ministry that the 2005 prescribed rates for calculating the operating cost benefit have been changed, the program has been updated accordingly. The rates for 2005 are as follows: General rate: 20 cents per km Rate for employees selling or leasing cars: 17 cents per km 3. The British Columbia provincial sales tax rate was changed from 7.5% to 7.0% effective October 21, 2004. The default rate in AvanTax has been adjusted accordingly. 4. A new report, Automobile Mileage Log, has been added. You can print a log for each vehicle for the current or planning year or a blank log form that can be photocopied and distributed to employees. 5. The user interface has been changed. A treeview window can be used to select companies and employees. The open window list shows what windows are active. A window can be selected by clicking on the name of the window in the list. NOTE: The prescribed rates for calculating the operating cost benefit have not been changed. For the 2003 version, the following changes were made: 1. Following an announcement by the Finance Ministry that the prescribed rates for calculating the operating cost benefit have been changed, the program has been updated accordingly. The rates for 2003 are as follows: General rate: 17 cents per km Rate for employees selling or leasing cars: 14 cents per km 2. Following an announcement by the Finance Ministry, the reduced standby charge calculation has been changed, as follows. a) An employee is now eligible for a prorated standby charge if the car is mainly used for business purposes. This means that the business kilometres driven must be more than 50% of all kilometres driven in a year, rather than 90% under previous legislation. b) The personal-use threshold in the proration will be increased from 12,000 to 20,000 kilometres. 3. The software is now bilingual. The user may switch between French and English. In addition, each the reports for each employer and employee can be printed in either French or English. For the 2001-2002 version, the following changes were made: 1. Following an announcement by the Finance Ministry that the prescribed rates for calculating the operating cost benefit have been changed, the program has been updated accordingly. The rates for 2001 are as follows: General rate: 16 cents per km Rate for employees selling or leasing cars: 13 cents per km 2. A "Print" icon has been added to the Report Preview window. 3. Where "Combined Vehicle" reports are generated for purchased vehicles, the cost of the vehicle (including taxes) are now calculated as a weighted average based on the number of days each vehicle was available. For the 2000-2001 version, the following changes were made: 1. The Combined Vehicles report was calculating an incorrect standby charge when the vehicle lease cost was for a period rather than a month. The report now calculates the standby charge correctly. 2. When employee reimbursements were entered but the actual operating cost amount was not entered, the operating cost benefit was reduced to zero and the message "Note: Employee reimbursements exceed operating costs attributable to personal kilometres driven" appeared on the report. This has been corrected. 3. The shortcut for exiting from the data entry screens has been changed from Ctrl+X to Alt+X. Ctrl+X can now be used to "cut" text. 4. Following an announcement by the Finance Ministry that the prescribed rates for calculating the operating cost benefit have been changed, the program has been updated accordingly. The rates are now as follows: 2000/2001 general rate: 15 cents per km 2000/2001 rate for employees selling or leasing cars: 12 cents per km 5. To facilitate any future changes, two new items have been added to the File menu to permit changing the rates and resetting to default rates. This could be used to set the rates to 0 cents per km in cases where the operating cost benefit does not apply. 6. The summary reports can now be sorted by vehicle cost as well as by other fields. CONTACT INFORMATION =================== Toll Free: 1-800-268-3211 Toronto: (416) 495-1624 Fax Number: (416) 495-0044 Montreal: (450) 441-6605 E-Mail: support@avantax.ca Website: www.avantax.ca