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Help
| Register - If you are a new user, you use this page to register your user name and password.
- If you are an existing user, you use this page to modify your registration information. To modify your registration, you first need to login to the system using your current user name and password. Next, you can access the Register page to change your user name, password or email address. Fields:
User Name
A fictional name you enter to login to the system and access previously saved data.
Password
A password you enter to login to the system and gain access to your previously saved data.
Confirm Password
Type the same password in this field for confirmation.
Email Address (optional)
Your email address. The system uses this address to send you your user name and password once you have registered. The system also uses this address to send you your user name and password in case you have forgotten them and cannot login. For more information, refer to the description of the email address field on the Login page.
Is your business located within the Greater Vancouver
Check the checkbox if you answer yes to this question. This information helps the Metro Vancouver identify the number of businesses in the Greater Vancouver that are using the Business Case TCA web application.
Controls: Save
Registers your username and password information
Cancel
Resets all fields to the last saved values.
Delete my registration and all of my data
Deletes your registration information (user name and password) and all the data you have entered while using this user name and password. Be very careful using this button; once the information is deleted you cannot retrieve it.
| Login You use this page to login to the system by providing your user name and password. Refer for more information to the Register page. Fields: User Name
A fictional name you enter to login to the system and access previously saved data.
Password
A password you enter to login to the system and gain access to your previously saved data.
Email Address
Your email address. The system uses this address to send you your user name and password. The email address entered in this field must be the same as the email address you have entered at registration.
Controls: Okay
Click to login to the system.
Not a registered user yet? Click here
Click to access the Register page
Send It!
Sends an email containing your user name and password to the email address specified in the Email Address field.
| Business Cases A business case is a change in the way you do business.
You use this page to enter general information about a business case and some financial parameters that apply to the case. Once you have saved a business case, it is listed in the Selected Case drop-down list at the top of the screen. Fields: Selected case
A drop-down list containing all business cases you have saved. To select a business case, click the down-arrow to display the list of cases, then click on the appropriate business case. Information for the selected business case displays in the remainder of the screen.
Name
A short title for the business case, used for case selection and display.
Title
An optional long title for the business case, which appears on reports in place of the short title.
Active Business Income
Income from business activities. Click one of the radio buttons to indicate your active business income. The system uses this information to calculate the effective corporate income tax rate.
Taxable Capital
The sum of your business’ equity and capital indebtedness, less an allowance for loans receivable and investments. The system uses this information to calculate the corporate capital taxes.
Maufacturing and Processing Income
The amount of income that a business derives from manufacturing and processing activities. The system uses this information to calculate your Manufacturing and Processing (M&P) deduction. To be eligible for the M&P deduction, a business must derive 10% or more of its gross revenue from all active business in Canada from Manufacturing and Processing.
Manufacturing and Processing Rate
The percentage of gross revenue that manufacturing and processing activities represent. The system uses this information to calculate your Manufacturing and Processing deduction. To be eligible for the M&P deduction, a business must derive 10% or more of its gross revenue from all active business in Canada from Manufacturing and Processing.
Discount Rate
The rate of interest or return that your businesses can earn on the best alternative use of money at the same level of risk.
Controls: New
Clears all fields, so that you can enter a new business case. Note that this button is greyed out until you have clicked Save or Discard.
Delete
Deletes the selected business case and all related information (options, processes, inventory, investment and operating costs).
Copy
Copies the currently selected business case and all related information, except for the business case name. You need to give a name to the new business case and save it.
Save
Saves the information for the selected business case.
Reset
Resets all fields to the last saved values. When you enter a new business case, the label on the button changes to Discard.
| Options An option is a scenario within a selected business case.
You use the Options page to define options for a selected business case, and to define some financial parameters that apply to the option and its cost items. Fields: Selected Case
A drop-down list containing all business cases you have saved. To select a business case, click the down-arrow to display the list of cases, then click on the appropriate business case. Information for the selected business case displays in the remainder of the screen.
Selected Options
A drop-down list containing all options you have saved for the selected business case. To select an option, click the down-arrow to display the list of options, then click the appropriate option. Information for the selected option displays in the remainder of the screen.
Name
A short title for the option, used for screen display and selection
Startup Year
The starting calendar year of the option. To select a year, click the down-arrow and click the appropriate year in the drop-down list.
Duration
The anticipated life of the option, in years
Inflation (expected)
The inflation rate which will be applied to all cost items for each year over the option’s lifetime
CCA Class (default)
Default Capital Cost Allowance class. CCA classes indicate the depreciation method for equipment. The CCA class you select in this field is assigned to all investment cost items. You can assign a different CCA class to each cost item in the Investment Costs page
SR&ED cCredit
Scientific Research & Experimental Development investment tax credit. Innovative pollution prevention projects may be eligible for this credit. You need to indicate the percentage of costs which are eligible for the SR&ED credit.
Number of Processes
A process is a business process that is affected by a certain option. In Business Case TCA, you need to break down an option into the various processes it encompasses, which helps you to define cost categories and cost items, as explained in “Inventory”.
In this field you can specify the number of processes for the option. The system names these processes “Process 1”, “Process 2”, … by default, but you can change these names to something more descriptive on the Inventory page.
There must be at least one process for an option.
Controls: NewClears all fields, so that you can enter a new option. CopyCopies all data (including related information such as cost items and cost information) from a selected source option to a new option, except for the name field, which is left blank. To copy an option you need to select the option, click copy, type a name for the new option in the blank Name field, then click Save to save the new option. Delete Deletes the selected option and all related information (that is, processes, inventory, investment and operating costs). There is no way to retrieve this information, so be careful using the delete button. SaveSaves the information for the selected business case. Reset Resets all fields to the last saved values. When you enter a new business case, the label on the button changes to Discard.
| Inventory This page displays the inventory of investment cost categories and items and of operations cost categories and items.
*Note that you cannot display investment and operating cost items at the same time; you have to use the radio buttons at the top of the screen to indicate if you want to display investment or operating costs.
The page first displays the core inventory lists for investment costs or operating costs. You can add custom cost categories and cost items to these lists. The inventory lists are grouped by process, then by cost category, and then by cost item.
The functions you can perform in the Inventory page are:
- Renaming processes
- Adding, renaming, and deleting custom cost categories (you cannot rename or delete core cost categories)
- Adding, renaming, and deleting custom cost items (you cannot rename or delete core cost items)
- Selecting cost items (both core and custom). Fields: Selected Case
A drop-down list containing all business cases you have saved. To select a business case, click the down-arrow to display the list of cases, then click on the appropriate business case. Information for the selected business case displays in the remainder of the screen.
Selected Options
A drop-down list containing all options you have saved for the selected business case. To select an option, click the down-arrow to display the list of options, then click the appropriate option. Information for the selected option displays in the remainder of the screen.
The following filters displays at the top part of the page:
Investment Costs/Operating Costs
Click on one of the radio buttons to indicate if you want to display the inventory list for investment costs or for operating costs. Investment Costs is selected by default.
All Items/Selected Items
Click on one of the radio buttons to indicate if you want to display all cost items in the inventory list or only selected items (that is, items marked with a checkmark). All items is selected by default.
Process
Select one or all processes from the drop-down list. Your selection displays in the inventory list. All Processes is selected by default. Note that processes are the same for investment and operating costs.
Category
Select one or all cost categories from the drop-down list. Your selection displays in the inventory list. All Categories is selected by default.
The list of inventory items displays in the bottom part of the page. The content of this inventory list reflects the filters you have chosen in the top part of the page. If you selected Operating Costs, the list displays processes, operating cost categories, and operating cost items.
The system populates the inventory and operating cost lists with core cost categories and items. You cannot rename or delete any core categories or items. You can however add custom categories and cost items, which you can later rename or delete.
The inventory list is divided into columns, as follows:
Select
The Select column displays checkboxes for cost items only. Place a checkmark next to any investment or operating cost item you want to select. Then click the Save Selections button to display the selected items in the Investment Costs or Operating Costs page.
Action
The Action column displays the functions you are able to perform for each process, cost category, and cost item. The options are:
- Rename: Click to rename. A textbox displays where you can type a new name. Note that the Action column displays the Update and Cancel functions. Click Update to save the new name, or Cancel.
- New Category: Click to insert a new cost category at the end of each process. You can rename or delete this cost category (note the Rename and Delete functions in the Action column).
When renaming a new operating cost category, you are asked to indicate if the category contains revenues or expenses. Check the Revenue? checkbox to indicate the category contains revenues.
- New Item: Click to insert a new cost item. The new cost item is inserted at the end of the category. You can rename or delete the new item (note the Rename and Delete functions in the Action column).
Process/Category/Cost Item
The Process/Category/Cost Item column displays the names of both core and custom processes, cost categories, and cost items. The information displayed in this column depends on the filters you have selected in the top part of the screen.
Controls: Report
A simple report of Inventory items, grouped by Category and Process. Use Set Filters to tailor the contents of the report.
Set Filters
Click to set the filters you have chosen at the top of the page. The system then populates the inventory list in the bottom of the page according to the filters you selected
Save Selections
Click to save selected cost items. These items then display in the Investment Costs or Operating Costs page.
Reset Selections
Resets your selection of cost items to the last saved selection.
| Investment Costs This page displays the investment cost categories and items that you have selected in the Inventory page. You use this page to edit cost information. Fields:
Selected Case
A drop-down list containing all business cases you have saved. To select a business case, click the down-arrow to display the list of cases, then click on the appropriate business case. Information for the selected business case displays in the remainder of the screen.
Selected Options
A drop-down list containing all options you have saved for the selected business case. To select an option, click the down-arrow to display the list of options, then click the appropriate option. Information for the selected option displays in the remainder of the screen.
The following filters displays at the top part of the page:
Process
Select one or all processes from the drop-down list. Your selection displays in the inventory list. All Processes is selected by default. Note that processes are the same for investment and operating costs.
Category
Select one or all cost categories from the drop-down list. Your selection displays in the inventory list. All Categories is selected by default.
The list of investment cost items displays at the bottom part of the page. The content of this list reflects the filters you have chosen at the top part of the page. The inventory list is divided into columns, as follows:
Item
The item column displays the selected investment cost item for as many years as the lifetime of the option. The column also displays the cost category and process the item belongs to.
Year
Investment year. The system displays as many years as you have defined for the option’s lifetime (using the Startup and Duration fields in the Options page.).
Cost ($)
The cost (in dollars) of the asset. You need to type the cost of the item in the row for the year in which you plan to make the purchase. That is, if you plan to make the investment two years later than the start-up year of the option, you type the cost in the row for the third year. If you make multiple investments over several years, you type the investment cost in each applicable investment year.
You need to enter the cost of the item using values for the start-up year. The system applies the inflation rate to this value to arrive at the expected future cost of the item.
Life (yrs)
This is the expected lifetime of the asset. You enter the lifetime in the same row as the year in which you made the investment.
Salvage ($)
Salvage value is the amount for which you can sell the asset at the end of its lifetime. You enter the salvage value in the same row as the year in which you made the investment.
Working capital costs cannot be depreciated. You therefore cannot enter a salvage value or CCA class.
CCA
Capital Cost Allowance class, which indicates the depreciation method for a cost item. You select the CCA class in the same row as the year in which you made the investment.
The system uses the declining balance CCA method. This means that an asset depreciates faster at the beginning of its life. The declining balance method uses a half-year convention, whereby only half the value of the first year’s CCA is used in the first year.
Working capital costs cannot be depreciated. You therefore cannot enter a salvage value or CCA class.
Controls: Report
A simple report of Inventory items, grouped by Category and Process. Use Set Filters to tailor the contents of the report.
Set Filters
Click to set the filters you have chosen at the top of the page. The system then populates the inventory list in the bottom of the page according to the filters you selected
Save
Saves changes you have made to investment cost items.
Reset
Resets all cost information to the last saved values.
| Operating Costs This page displays the operating cost categories and items you selected in the Inventory page. You use this page to edit cost information. Fields:
Selected Case
A drop-down list containing all business cases you have saved. To select a business case, click the down-arrow to display the list of cases, then click on the appropriate business case. Information for the selected business case displays in the remainder of the screen.
Selected Options
A drop-down list containing all options you have saved for the selected business case. To select an option, click the down-arrow to display the list of options, then click the appropriate option. Information for the selected option displays in the remainder of the screen.
The following filters displays at the top part of the page:
Process
Select one or all processes from the drop-down list. Your selection displays in the inventory list. All Processes is selected by default. Note that processes are the same for investment and operating costs.
Category
Select one or all cost categories from the drop-down list. Your selection displays in the inventory list. All Categories is selected by default.
The list of investment cost items displays at the bottom part of the page. The content of this list reflects the filters you have chosen at the top part of the page. The inventory list is divided into columns, as follows:
Escalation
A percentage reflecting the expected increase each year in the cost of this item, in excess of inflation.
Cost
The cost (in dollars) of the operating cost item. Enter the amount (in dollars) for each year in which a cost will be incurred for this item.
Cost items with associated GVRD fee schedules have a ? icon on the left-hand side of the item name. Clicking the icon will open a new window containing information about determining the cost of these fees.
Controls: Report
A simple report of Inventory items, grouped by Category and Process. Use Set Filters to tailor the contents of the report.
Set Filters
Click to set the filters you have chosen at the top of the page. The system then populates the inventory list in the bottom of the page according to the filters you selected
Save
Saves changes you have made to investment cost items.
Reset
Resets all cost information to the last saved values.
| Analysis You use the Analysis page to select one of a number of predefined reports and to set report parameters. Fields:
Selected Case
A drop-down list containing all business cases you have saved. To select a business case, click the down-arrow to display the list of cases, then click on the appropriate business case. Information for the selected business case displays in the remainder of the screen.
Selected Options
A drop-down list containing all options you have saved for the selected business case. To select an option, click the down-arrow to display the list of options, then click the appropriate option.
The option you have selected is used in the report.
Type of Report
Select a report type by clicking on a radio button.
Investment Cost Summary
The investment costs summary report lists the investment amounts for an option in year zero dollars (that is, the dollar values for the start-up year of the option). This report list the amounts you entered in the Investment Costs page, without performing any calculations
Operating Cost Summary
The operating costs summary report lists the cost and revenue data for each cost item in year zero dollars (that is, the dollar values for the start-up year of the option). This report list the amounts you entered in the Operating Costs page, without performing any calculations.
CCA Tax Reduction
The Capital Cost Allowance (CCA) Tax Deduction report calculates any relevant investment-related tax deductions during each year of an option’s life.
Cash Flow
You use a Cash Flow report to analyze an option’s cash flow over time. Cash flow reports include the effects of inflation and escalation.
Profitability
The Profitability report uses Net Present Value Internal Rate of Return, and Discounted Payback to measure the profitability of an option.
Compare Selected Option With
Click the down arrow to display a list of options against which you want to compare the option you have currently selected at the top of the page. You can also report on the selected option only. In that case, select “No Comparison”.
First Year
Choose the first year you want to report on. By default, the option’s start-up year is selected.
Last Year
Choose the last year you want to report on. By default, the system displays the option’s last year (which is determined by the start-up year and the option’s duration).
Interval
Select an interval of years to report on. By default, the interval is set to 1 (that is, the system includes every year in the report.
Controls: Report
Click to generate the selected report. The report displays in a separate Report page, from where you can print or save the report.
The Report page displays in a separate window, allowing you to open multiple reports at a time. To print a report, use the print option in your browser menu (or select File>Print). To save a report, click one of two options:
- Download as Excel Spreadsheet
- Text – CSV format
A dialog displays which you use to indicate where you want to save the file.
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ACCA Accelerated Capital Cost Allowance. ACCA is a special CCA provision (class 24 or 27) that allows pollution control and pollution prevention equipment to be depreciated at an accelerated rate. <check if still needed> | Active Business Income Income from business activities. | After-tax cash flow Operating savings or costs minus income tax, plus investment costs, working capital recovery, and salvage value. | Business case A business case is a change in the way you do business. | Cash flow Stream of cash outflows or expenditures and cash inflows or receipts. | CCA Capital Cost Allowance. A corporation may deduct part of the capital cost of a depreciable property from income it earned in a given year. This deduction is referred to as CCA. Depreciating an asset via the CCA is a means of distributing its cost over the years in which it is used. The CCA class to which an asset belongs determines the rate at which the asset is depreciated. Note that working capital costs cannot be depreciated. | Cost category Cost categories are groupings of investment and operating cost items. | Cost item Cost items are individual items within cost categories. Cost items can be investment and operating cost items. | Discounted cash flow Discounted cash flow looks at cash flow and applies a discount rate to translate these inflows and outflows (occurring at various points in time) to present values. The discounted cash flow is arrived at by applying a discount rate to the after-tax cash flow. | Discounted payback Determines the number of years it takes to recover the original investment. | Equipment lifetime The expected lifetime of a cost item. | Escalation rate The rate by which a cost item is inflated more or less than the inflation rate used for all cost items in an option. For example, if the inflation rate is 3 percent but you expect a certain cost item to inflate by 5 percent, enter an escalation rate of 2. (Type negative values for items that will have a lower rate than the inflation rate for all items.) | Expensed Expensed indicates that the entire cost of a cost item (asset) will be charged in the first year of the investment. In other words, if you expense an item, you are not depreciating it but rather treating it like any other business expense. | Inflation The expected inflation rate which will be applied to all investment and operating cost items for each year over the option’s lifetime. (See Escalation rate) | Internal rate of return The discount rate that would cause the given cash flow to yield a net present value of 0. |
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Resources
Expensed, 1, 3, 6, 7, 8, 9, 10, 10.1, 12, 13, 14, 16, 17, 38, 39, 43, 44 |
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Click on the CCA Class to see the details | Expensed is not a CCA class. It is listed here because it is included in the drop-down list of CCA classes in the Business Case TCA system. Expensed means that the entire cost of the asset will be charged in the first year of the asset. |
| Most buildings made of brick, stone or cement, acquired after 1987, including their component parts such as electric wiring, lighting, fixtures, plumbing, heating and cooling equipment, elevators and escalators |
| Most buildings made of brick, stone or cement acquired before 1988, including their component parts as listed in class 1 above |
| Buildings made of frame, log, stucco on frame, galvanized iron, or corrugated metal that are used in the business of farming or fishing, or that have no footings below-ground; fences and most greenhouses |
| Canoes, boats and most other vessels including their furniture, fittings or equipment |
| Property that is not included in any other class such as furniture, calculators and cash registers, photocopy and fax machines, printers, display fixtures, refrigeration equipment, machinery, tools costing $200 or more, and outdoor advertising bill-boards, and greenhouses with rigid frames and plastic covers acquired after 1987 |
| Aircraft, including furniture, fittings, or equipment attached, and their spare parts |
| Automobiles (except taxis and others used for lease or rent), vans, wagons, trucks, buses, tractors, trailers, drive-in theatres, general-purpose electronic data-processing equipment (e.g., personal computers) and systems, software, and timber cutting and removing equipment |
| Passenger vehicles costing more than $24,000 ($20,000 if acquired before September 1989). For passenger vehicles acquired after 1990, the $24,000 cost does not include either GST or any provincial sales tax |
| Chinaware, cutlery, linen, uniforms, dies, jigs, moulds or lasts, computer software, (except systems software), cutting or shaping parts of a machine, certain property used for earning rental income such as apparel or costumes, and videotape cassettes; certain property, costing less than $200 such as kitchen utensils, tools, and medical or dental equipment; certain property acquired after August 8, 1989, and before 1993 for use in a business of selling or providing services such as electronic bar-code scanners, and cash registers used to record multiple sales taxes |
| Property that is a leasehold interest (the maximum CCA rate depends on the type of the leasehold and the terms of the lease). Annual CCA for this class requires a calculation of one or more “prorated portions.” The prorated portion is the lesser of a) one-fifth of the unit of capital cost, and b) the amount determined by dividing the unit of capital cost by the number of 12 month periods (not exceeding 40) falling within the period in which the capital cost was incurred and ending with the day the lease is to terminate. The termination date falls at the end of the lease plus the first possible renewal term. For further information and a detailed example, reference should be made to Interpretation Bulletin IT-464R |
| Patents, franchises, concessions and licenses that have a limited life—the CCA is limited to the lesser of the capital cost of the property spread out over the life of the property; and the un-depreciated capital cost of the property at the end of the taxation year. Class 14 assets are not subject to the half-year rule, however Revenue Canada requires the CCA available to be apportioned on a per diem basis in any given taxation year. Class 14 also includes patents and licenses to use patents for a limited period that you elect not to include in class 44. |
| Automobiles for lease or rent, taxicabs and coin-operated video games or pinball machines; certain tractors and large trucks acquired after December 6, 1991, that are used to haul freight and that weigh more than 11,788 kilograms. |
| Roads, sidewalks, parking-lot or storage areas, telephone, telegraph, or non-electronic data, communication switching equipment. |
| Most power-operated movable equipment acquired after 1987 used for moving, excavating, placing or compacting earth, rock, concrete or asphalt. |
| Machinery and equipment acquired after 1987 and before February 26th 1992 that is used in Canada primarily to manufacture and process goods for sale or lease |
| Manufacturing and processing machinery and equipment acquired after February 25 1992, described in class 39 above. Note that this class may be specifically applicable for some energy conservation and non-product output treatment investments. (Refer to Preparing Your Corporate Tax Returns published by CCH for further discussion.) |
| Patents and licenses to use patents for a limited or unlimited period that the corporation acquired after April 26, 1993. However, you can elect not to include such property in class 44 by attaching a letter to the return for the year the corporation acquired the property. In the letter indicate the property you do not want to include in class 44. |
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Fast Facts
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