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Automobile Taxable Benefits Software

1. 3 3 M 5 Excluding G S T P S TI and insurance 5 5 Only applicable where employee made reimbursements 5 5 with respect to personal use of the vehicle AvanTax System c 5 5 AvanTax Software Inc 5 94444444444444444444444444444444444444444444444444444444444444444444444444444448 AvanTax System Automobile Taxable Benefits Software D 1 Reduced Benefit Election Forms APPENDIX D AvanTax System D 2 Reduced Benefit Election Forms FEDERAL AUTOMOBILE TAXABLE BENEFIT Employer hereby elect to have my automobile benefit computed pursuant to paragraph 6 2 2 of the Canadian Income Tax Act Signed Date PROVINCIAL AUTOMOBILE TAXABLE BENEFIT Employer hereby elect to have my automobile benefit computed pursuant to Section 41 1 of the Quebec Taxation Act Signed Date User s Guide Automobile Taxable Benefits Software E 1 E 2 Reports APPENDIX E TAXABLE BENEFITS SUMMARY AUTOMOBILES Reports EST Employer Auto Perform Inc Employee name Employee number FEDERAL PROVINCIA Hendricks 101 Thomas Marcie 102 Employer total ESTIMATED TAXABLE BENEFITS AUTOMOBILES Taxation year 2001 Employer Auto Perform Inc PROVINCIAL Employee name Employee number Periods Total Per pay Hendricks 101 Employer total AvanTax System User s Guide Automobile Taxable Benefits Software E 3
2. SO you might want to print it separately You can do so by selecting 4 Blank Election Form from the Reports sub menu AvanTax System Automobile Taxable Benefits Software 8 1 CHAPTER 8 About the Legislation Definitions The Canadian Income Tax Act ITA Excise Tax Act GST Quebec Taxation Act QTA and Quebec Sales Tax Act QST have their own definitions for certain common terms The following definitions found in these legislations will be relevant in determining the requirements to compute the taxable benefit and or remit applicable GST HST Automobile That term will generally include motor vehicles that are designed or adapted to carry individuals on highways and streets and have a seating capacity for not more than the driver and eight passengers The following vehicles are excluded from the definition of automobile ambulance taxi bus funeral hearse Van and pick up trucks are also excluded in the following circumstances a The seating capacity is limited to the driver and two passengers and it is used primarily generally understood to be more than 5096 for the transportation of goods or equipment in the course of business or b The seating capacity is not limited but its use is all or substantially all 9096 or more for the transportation of goods equipment or passengers in the course of the business Use in Commercial Activities For purposes of computing the required remittance under
3. see the previous section with the following additional steps 1 You must assign rights for each user to read write delete and create files on the network drive User s Guide Automobile Taxable Benefits Software 2 3 2 Each user might also need to run the DOS SHARE command if applicable File Re indexing Should you be interrupted in your AvanTax System working session by a power failure or computer hardware failure you will need to reindex the data files to ensure the integrity of your information Do this by selecting 5 File Reindexing from the main menu AvanTax System Automobile Taxable Benefits Software 3 1 CHAPTER 3 Menus Main Menu When you access the system it will automatically present the Main Menu on the screen You will then be able to access the sub menus which will allow you to input basic employer and employee information and print reports and summaries ELM Computer Systems Inc AvanTax System I c MAIN MENU 1 Employer management 2 Employee management 3 Reports 4 Printer selection 5 File reindexing lt ESC gt to exit F2 Version frangaise F3 Monochrome display AvanTax System 3 2 Menus Action Menus These menus will allow you to choose an action or command They are easily activated by either using the arrow keys to highlight them and pressing ENTER or by pressing the first letter of the action e g C for Creation D for Deletion ACTION In
4. 10 Employee Management Modification If the Modification action is selected you may change any ofthe fields To confirm your modification or move to the bottom of the information summary by using the arrow or ENTER keys and press the ENTER key while in the last input field Deletion If you activate the Delete command a confirmation message will be displayed at the bottom of the screen requesting your confirmation to delete the entire employee file Once that process is activated all of the specific data with respect to the employee will be deleted Vehicles Once an employee file has been created the F5 function key will allow you to access an employee s vehicles list and effect the following operations by pressing the indicated key Operation Key insert or modify yearly details press D modify permanent information press ENTER insert a new vehicle press Ins delete a vehicle highlight vehicle and press Del access the Planning module press P User s Guide Automobile Taxable Benefits Software 7 1 CHAPTER 7 Reports Employer Summaries After selecting Employer Summaries from the Reports sub menu you will be requested to provide the employer name the year for which you want to print reports and the sort order of the employees on the report employee name employee file number or province plus name You can then select the report you require AvanTax provides you with the following employer summary reports Tax
5. 5 5 5 5 5 M 5 5 5 5 5 5 5 5 5 5 5 5 M 5 5 5 5 5 5 5 M 5 5 5 5 5 5 5 5 5 M 5 5 5 5 4444444444444444444444444444444444444444444444444444444444444444444444444444448 5 K 5 5 5 5 5 5 5 5 5 5 5 5 K 5 5 5 5 5 5 5 K 5 5 5 5 5 5 5 5 5 K 5 5 5 5 9 User s Guide Automobile Taxable Benefits Software C 3 reer reer ee ee 5 5 5 AUTOMOBILE TAXABLE BENEFIT 5 5 INPUT FORM 5 5 AUTOMOBILE LEASED 5 5 5 444444444444444444444444444444444444444444444444444444444444444444444444444444 5 5 S EmpLoY 1 BN wet SI CUOI ES EIU BONG Soe SO 5 5 5 5 Employee E hee oe owe d Number 22 2 2 Ls 5 5 5 K3 3 3 3 3 3 M 5 5 5 VEHICLE DESCRIPTION 5 5 5 5 DESCRITAS ISO Maec cce emet 5 5 Serisi tombet j 4 oo aes ne Se se 5 5 5 5 Leasing cost Cm Ku ER Period Month 5 5 P S T on lease SAMT c aoe ee 5 5 5 5 Date vehicle made 5 5 available SE SAA Date returned 5 5 5 K3 3 3 3 3 3 3 3 M 5 5 5 ANNUAL DATA 5 5 5 5 USAGE 5 5 Kilometres driven II A 5 5 Personal 5 5 5 Ky ee e 3 sed exp Dee ey 6p Je aed o oe ded doe Y dep d O O cM 5 5 5 5 5 REIMBURSEMENTS 5 5 5 5 Standby charge 4 2 2 4 5 5 Operating costs 2 5 5 Actual operating costs 0 5 5 Including G S T and P S T 5 5 5 K3 3 3 3 3
6. As previously mentioned the number of days an automobile was available to an employee is automatically computed by the software This field may User s Guide Automobile Taxable Benefits Software 6 7 be overridden However if the date the car was made available or its date of return are subsequently modified the software will recompute this data and update the overridden field You will therefore have to override this field again if the previous override still applies Mileage While on either the total or personal kilometres field you can press the F2 Function key to access the following monthly data input screen Total 0 0 0 Personal 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Jan Feb Mar Apr June July Aug Sept Oct Nov Dec 0 0 0 0 To move to a specific month while in that screen you press the F3 Function key and you will be prompted to indicate which month you want to go to As an example you would go to the month of October by inserting 10 Reimbursements a Standby Charge Enter the total of all reimbursements made by the employee during the calendar year with respect to the use of the vehicle other than reimbursements with respect to the operating costs b Operating Costs Enter the total of all reimbursements with respect to the operating costs made by the employee prior to February 15 of the year following the year for which the taxable benefit is computed Where reimbursements are made with respect to oper
7. E 4 Reports STATUS REPORT AUTOMOBILES TAXATION YEAR 2000 Taxation year 2000 Employer Auto Perform Inc FEDERAL Employee Hendricks Roger taxable benefit Number 101 Automobile Vehicle 98 Ford Taurus Employer Auto Perform Inc Employee name Vehicles Calculations Employee number available completed Acquisition cost G S T on acquisition Hendricks Q S T on acquisition 101 Acquired before 1992 Y N Thomas Marcie Number of days vehicle available 102 Kilometres driven Total Personal Employee Reimbursements Standby charge Operating costs Standby charge 12 000 14 814 x 12 NET REMITTABLE G S T AUTOMOBILES Taxation year 2000 Less Amount reimbursed by employee Employer Auto Perform Inc G S T INCLUDED IN Operating costs Employee name Standby Operating Employee number Hendricks 101 Thomas Marcie 102 TOTAL TAXABLE BENEFIT FEDERAL Employer total AvanTax System User s Guide Automobile Taxable Benefits Software E 5 TAXATION YEAR 2000 Employer Auto Perform Inc Employee Hendricks Roger Number 101 Vehicle 98 Ford Taurus PROVINCIAL taxable benefit Automobile Standby charge 14 814 x 12 Less Amount reimbursed by employee 3 000 Operating costs 5 200x 156 TOTAL TAXABLE BENEFIT PROVINCIAL AvanTax System
8. be listed followed by the file name TIP If the name or number error message is displayed you may access the employer list by typing and pressing the ENTER key Once you have accessed the employer information summary an expanded action menu will be displayed with the following options Inquiry Creation Modification and Deletion You will then be able to modify any information or delete the entire file by choosing the desired action command You can also access the next employer file in alphabetical order by pressing PgDn or the previous file by pressing PgUp Modification If the Modification action is selected you may change any of the information fields To confirm your modification press PgDn or move to the bottom of the information summary using the arrow or ENTER keys and press the ENTER key while in the last input field Deletion If you activate the Delete command a confirmation message will be displayed at the bottom of the screen requesting your confirmation to delete the entire employer file Once that process is activated all of the specific employer s employee files will be deleted User s Guide Automobile Taxable Benefits Software 6 1 CHAPTER 6 Employee Management Creation To create a new employee file use the Creation command of the Employee Management sub menu This command will call up the following data input screen if the employer is not a car dealership or leasing agent E
9. number of months x 1 000 kms x 2 3 of lease costs including GST HST and PST excluding insurance 2 Operating Costs Benefits a if business use is less than or equal to 50 15 multiplied by the number of personal kilometres b if business use is greater than 50 and employee has produced applicable election form prior to December 31st The lesser of the amount computed in a and 50 of the standby charge computed prior to any reimbursements made by the employee 3 Reimbursements a Standby Charge The standby charge benefit determined above is then reduced by all related reimbursements made during the calendar year by the employee to the employer Excess reimbursements with respect to standby charge benefit do not reduce the operating costs benefit and vice versa b Operating Costs Benefit The operating costs benefit determined above is then reduced by all related reimbursements made by the employee to the employer prior to February 15 of the following year However where reimbursements made within the period noted above are equal to or exceed the actual operating costs including PST and GST HST incurred by the employer attributable to the AvanTax System 8 4 About the Legislation personal use of the vehicle by the employee no taxable benefit applies with respect to such operating costs Quebec For purposes of computing the automobile taxable benefit to be reported on Quebec Relev 1 s the employers are
10. standby charge using the reduced rate of 1 5 instead of 2 and the operating costs benefit will be calculated at 11 per kilometre instead of 14 per kilometre Pay periods The number of pay periods will be set by default as the number of pay periods inserted in the employer basic information screen This number will allow the computation of the per pay period estimated taxable benefit amount available through the Planning module This field can be overidden where an individual becomes an employee during the year and is supplied with a vehicle or an employee is supplied with a vehicle part way through the year In these circumstances the number of remaining pay periods in the year should be inserted To facilitate your computation of remaining pay periods you can access the Calendar Window by pressing the Alt and F7 keys simultaneously The Calendar Window opens on the current month with the current day flashing You can scroll through the Calendar Window by using the PgDn and PgUp keys to access the previous and subsequent months The Calendar Window can be accessed from anywhere in the software User s Guide Automobile Taxable Benefits Software 6 3 Once the employee file has been created the screen will look like this ACTION Inquiry EMPLOYEE MANAGEMENT Creation Modification Auto Perform Inc Deletion File number 101 Employee name Hendricks Roger Province F Ontario Language E F E English S
11. AVANT AX software Automobile Taxable Benefits Software 2000 DOS Version Calculate automobile taxable benefits and related GST and QST in minutes AVANTAX SYSTEM ELM Computer Systems Inc Automobile Taxable Benefits Software 2000 DOS Version Calculate automobile taxable benefits and related GST and QST in minutes AVANTAX SYSTEM Automobile Taxable Benefits Software i Important Disclaimer This publication is sold with the understanding that the authors and editors are not responsible for the results of any actions taken on the basis of information in this work nor for any errors or omissions and the publisher is not engaged in rendering legal accounting or other professional services The publisher and the authors and editors expressly disclaim all and any liability to any person whether a purchaser of this publication or not in respect of anything and of the consequences of anything done or omitted to be done by any such person in reliance whether whole or partial upon the whole or any part of the contents of this publication If legal advice or other expert assistance is required the services of a competent professional person should be sought This manual is copyrighted by ELM Computer Systems Inc All Rights Reserved Under the copyright laws this manual may not be copied in whole or in part without the written consent of ELM Computer Systems Inc Under law copies cannot be made for others w
12. MPLOYEE MANAGEMENT CREATION Auto Perform Inc File number Employee name Province F Ontario Language E F E English Pay periods 0 If the employer is entered as a car dealership or leasing agent the following screen will be displayed EMPLOYEE MANAGEMENT CREATION Auto Perform Inc File number Employee name Province F Ontario Language E F E English Sales person or leasing agent Y N Y Yes Pay periods 0 AvanTax System 6 2 Employee Management Employee Name We suggest that you use the family name first name input format e g Berridge Charles to input employee names This will ensure that scrolling through the employee list can be done efficiently using the alphabetical order while in the Inquiry mode Province and Language Both the province and language codes are set by the employer default codes You may change either of these by inserting the appropriate code or pressing the space bar while in either input field to select from the appropriate list see Creation command under Employer Management All reports and forms printed for a particular employee will be printed in the language indicated here Car Dealerships Where the employer operates a car dealership or an automobile leasing business you will be prompted to indicate if the employee is a salesperson or leasing agent see Car Dealerships and Leasing Businesses at 8 4 If you answer yes the software will compute the
13. NER LRL DEUM NUN CM a ee Se ae 3 1 PRINTER uei O NUI Bi EMPIRE MS 4 1 EMPLOYER MANAGEMENT eru 5 1 INQUIRY oen ENS E E os eee ee th DEO 5 3 Modification coi ur nb er peeing ehh deed ede E 5 4 Deletion scs ee Heer Se PA PN Le ee a 5 4 EMPLOYEE MANAGEMENT Creation sci eto soie lei Si hae Oe do VENE 6 1 Vehicles Permanent Data eee cece 6 3 Planning Module ieri Rr Re hoe eda erat 6 8 INQUI sis merat Rr etd qe 6 9 Modification 424 drei ier da breast dg etis 6 10 Deletion illa 6 10 Vehicles me ee READER oe we hehe ocean Ra 6 10 REPORTS Employer Summaries 00 000s 7 1 Employee Detailed Computation 0 000 e eee ee eee 7 2 Data Entry Form ai eee ae doe deta dei ae i Pak wala 7 2 Election FOr eset dale we tdt te cea e 7 3 ABOUT THE LEGISLATION Definitions i eee e Gita ag val eked eld eee eats ates 8 1 Computation of Taxable Benefits 0 cece eee eens 8 2 Car Dealerships and Leasing Businesses 8 4 GST Computation Reporting and Remittance 8 5 QST Reporting losses aan Yep ede ee ta vada PPP 8 6 APPENDICES Input Forms Alberta 0 00 cece eee III A 1 Input Forms Quebec 0 eee eee eee B 1 Input Forms Other Provinces 0 cee ee eee e eee C 1 Reduced Benefit Election Forms 0 e cece eee eee D 1 Repose fin verme titer Aleta a REI pt ies E 1 AvanTax System Automobile Taxable Benefit
14. PgDn You will then be prompted to confirm that the data input is correct You may now type Yes to confirm or No to change any information TIP When multiple automobiles are made available to an employee they will be listed in the order of most recent acquisition first Oncethe permanent information has been entered the Vehicles List screen will appear AvanTax System 6 6 Employee Management Vehicles Description Serial number Date avail returned Vehicle 2000 00 01 01 00 12 31 Vehicle 1999 99 01 01 99 TZ ST D Yearly detail P Planning Enter to modify Ins to insert Del to delete Yearly Detail You access the annual information input screen by pressing D Yearly detail If a taxable benefit is applicable during 2 or more calendar years based on the date available and the date of return a list of the years will be displayed To access the Information input screen for a particular year press ENTER while that year is highlighted The following Information input screen will be called up Hendricks Roger 1999 Ford Taurus 2000 Number of days vehicle available 366 366 Kilometres driven Total 0 Personal 0 Employee Reimbursements Standby charge Operating costs Taxable benefit Where a vehicle is only available during one particular taxation year you will automatically access the information input screen by pressing D Number of Days Automobile Available
15. T This election is available to employers other than financial institutions who lease an automobile and the automobile is not used primarily in commercial activities or employers who are financial institutions who acquire or lease an automobile c the employer is an individual or partnership and the automobile is not used 9096 or more in commercial activities and AvanTax System 8 6 About the Legislation d the employer is not an individual partnership or financial institution and the automobile is not used primarily more than 50 in commercial activities Timing of Reporting 1 Employees other than shareholders The GST HST with respect to taxable benefits will be deemed to have arisen on the last day of February following the calendar year and the GST HST will be reported on the GST HST return covering the period which includes that day 2 Shareholders The GST HST with respect to taxable benefits will be deemed to have arisen on the last day of the employer s taxation year in which the automobile was made available to the shareholder and the GST HST will be reported on the GST HST return covering the period which includes that day QST Reporting The amount of net remittable QST with respect to a particular employee will include 7 5 107 5 of the standby charge before deducting reimbursements and 5 7 of the operating costs benefit also before deducting reimbursements User s Guide Automobile Taxable Benefits So
16. Taxable Benefits Software A 3 64444444444444444444444444444444444444444444444444444444444444444444444444444447 5 5 AUTOMOBILE TAXABLE BENEFIT 5 INPUT FORM 5 AUTOMOBILE LEASED 5 444444444444444444444444444444444444444444444444444444444444444444444444444444 5 xdi A BBERAAGEMN 5 5 Employee Number 5 133 3 33 3 3 3 3 3 3 3 3 3 3 3 3 VEHICLE DESCRIPTION Description Serial number Leasing cost i Sake Period Month Date vehicle made available Date returned ANNUAL DATA K 5 5 5 5 5 5 5 5 5 5 5 K 5 5 5 5 USAGE 5 Kilometres driven Total BAIE 5 Personal 5 K 5 5 5 5 5 5 5 5 5 K 5 5 5 5 9 y dL gx er edd cd dcp d koh doe dnd Vos adh Deak de J REI MBURSEMENTS Standby charge Operating costs Actual operating costs Including G S T 13 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 s Excluding G S T and insurance Only applicable where employee made reimbursements with respect to personal use of the vehicle AvanTax System c ELM Computer Systems Inc 5 5 5 5 5 5 5 5 5 5 M 5 5 5 5 5 5 5 5 5 5 5 133 3 33 3 3 3 3 3 3 3 3 3 3 3 3 3 3 M 5 5 5 5 5 5 5 M 5 5 5 5 5 5 5 5 5 M 5 5 5 5 4444444444444444444444444444444444444444444444444444444444444444444444444444448 AvanTax Syst
17. able Benefits Summary Status Report Estimated Taxable Benefits Summary and Net Remittable GST HST Net Remittable QST Examples of these reports are provided in Appendix E To select reports insert Y beside the name of the desired reports Once that information has been entered a report action menu will open If you want to modify any of the data in the Presentation and Selection areas of the screen you may do so by pressing M or moving the cursor to Modify in the action menu Select Change Presentation to change the date and report destination Printer Display or File or to insert a comment to appear on the report To change the Selection information activate Change Selection from the action menu If you want to view the report s on the screen change the destination from Printer to Display by pressing the space bar while the cursor is on Destination in the Presentation section To output the report s to a file press the space bar again and press ENTER You will be prompted for a filename You may use the default filename AVANTAX PRN or change it to any other valid DOS filename If no pathname is entered the file will be created in the directory where the program is located To print or display the desired reports activate Proceed from the action menu If you select Display the software allows you to peruse the reports page by page However you may only scroll forward AvanTax System 7 2 Report
18. ales person or leasing agent Y N Y Yes Pay periods 24 Status No data F5 Vehicles PgUp Previous PgDn Next The Status line below the basic employee information data screen provides you with the employee s taxable benefit calculations status As an example the Status line for an employee supplied with two vehicles during a particular year and for which operating data has only been provided for one vehicle will be as follows Status 2 veh 1 calc Each employee s status also appears in the employee list accessed through the inquiry command of the employee management module The Status Report also provides you with a complete listing of that significant information Vehicles Permanent Data To input the permanent and annual costs information with respect to the vehicles that were made available to a particular employee you select the Vehicles action command by pressing the F5 function key While you are creating a new employee this will automatically bring up the permanent information screen AvanTax System 6 4 Employee Management EMPLOYEE MANAGEMENT Auto Perform Inc Description 1999 Ford Taurus Serial number Date vehicle made Date of return 2 00 12 31 available 00 01 01 Owned or Leased 0 L Acquisition cost PST on acquisition GST HST on acquisition Date Automobile Made Available You may now input the permanent information with respect to the particular vehicle For each
19. ating costs you will also be prompted to input the total actual operating costs including PST and GST HST incurred by the employer while the vehicle was available to the particular employee The software will thereafter compute the amount of operating costs attributable to personal use and compare that amount to the reimbursements made to determine if an operating costs benefit apply see Reimbursements at page 8 3 AvanTax System 6 8 Employee Management Once all relevant annual data has been input you have to either press the ENTER key while in the last input field or press PgDn You will then be prompted to confirm that the data input is correct You may now type Yes to confirm or No to change any information After answering Yes to the above question the software will compute the taxable benefit and pause to show the result at the bottom of the screen To return to the Vehicles List press any key You will now be able to modify the Permanent Information of a particular vehicle by pressing the ENTER key insert a new vehicle by pressing Ins or delete a vehicle by pressing Del Planning Module The Planning module provides you with the estimated taxable benefit which is required to compute accurate deductions at source throughout the period of employment of a particular employee By pressing P while in the Vehicles List you will access the Planning Vehicles List The word Planning will continually flash b
20. benefits are properly computed see Car Dealerships at 6 2 Average Cost Once you have indicated that an employer operates a car dealership or leasing business you will be prompted to indicate the average cost applicable to computations of taxable benefits for salespersons leasing agents see Car Dealerships and Leasing Businesses at page 8 4 The average cost will be automatically inserted as the vehicle cost applicable to salespersons when completing the vehicle description for these employees User s Guide Automobile Taxable Benefits Software 5 3 AvanTax allows you to insert the average costs with respect to the current year and next year At the beginning of the year you should insert your estimated average cost for the year This will allow you to use the Planning module Once the average cost figure has been inserted you can reaccess this field either by activating the Modification command of the sub menu and accessing the average cost field or by simply pressing the F5 function key Pay Periods You should insert here the number of pay periods applicable to the employer in the particular year This number will be used by the software to produce the per pay period estimated taxable benefit found under the Planning module The number of pay periods indicated in this field will be inserted automatically in the pay periods field of all employees created for a particular employer GST HST on Reimbursements Prior to taxa
21. c PLANNING ESTIMATE 2001 Total number of pay periods o 24 Number of pay periods to date 0 Federal Prov Revised estimated taxable benefit 1539 1770 Estimated taxable benefit already included 0 0 Taxable benefit per pay period 64 74 The fields Number of pay periods to date and Estimated taxable benefit already included will allow an easy update of the employee s estimated taxable benefit throughout the year You might want to review each employee s actual data on a quarterly basis and compare it to the estimated data By inserting the revised estimated data with respect to total and personal kilometres and reimbursements and the up to date number of pay periods and cumulative taxable benefit added to the employee s gross pay subject to deductions at source the software will provide you with revised per pay periods figures to allow you to provide for appropriate deductions at source for the remainder of the year Inquiry When you invoke the Inquiry command to access an employee file you will be prompted to indicate if you want to access the file by using the employee name or number see Inquiry command under Employer Management Once you have accessed the employee information summary the expanded action menu will be displayed You will then be able to modify information with respect to the summary delete the employee file or access the particular employee s vehicles data AvanTax System 6
22. de reimbursements 5 5 with respect to personal use of the vehicle AvanTax System c 5 5 ELM Computer Systems Inc 5 94444444444444444444444444444444444444444444444444444444444444444444444444444448 AvanTax System Automobile Taxable Benefits Software C 1 APPENDIX C Input Forms Other Provinces AvanTax System C 2 Input Forms Other Provinces 64444444444444444444444444444444444444444444444444444444444444444444444444444447 5 5 AUTOMOBILE TAXABLE BENEFIT 5 INPUT FORM 5 AUTOMOBILE OWNED 5 444444444444444444444444444444444444444444444444444444444444444444444444444444 5 EMPEORA er tient ES 5 5 Employee Number 133 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 VEHICLE DESCRIPTION Description Serial number Acquisition cost P S T on acquisition Date vehicle made available Date returned 133 3 33 3 3 3 3 3 3 3 3 3 3 3 3 ANNUAL DATA USAGE Kilometres driven Total 808 ant Personal _______ pq tese o 59 3x Yrs op sgydzu gp dde ge REI MBURSEMENTS Standby charge Operating costs Actual operating costs Including G S T and P S T 13 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 f Excluding G S T and P S T Only applicable where employee made reimbursements with respect to personal use of the vehicle AvanTax System c ELM Computer Systems Inc 5 5 5 5 5
23. e your office regardless of whether such distribution is for profit All rights title and interest in and to the program and all documentation code and logic which describes and or comprises the program is vested in ELM Your right to use the program is conditional upon and limited by the terms and conditions of this license You may not a modify adapt translate reverse engineer decompile disassemble or create derivative works based on the program or b loan rent lease or sublicense the program or any copy without the prior written consent of ELM Any violation of these provisions will constitute an automatic revocation of your license to use the program and will subject you to substantial liability under the applicable legislation of the jurisdiction in which the program is being used You are permitted to use the program on any and all personal computers in your office with no restriction on the number of concurrent users Use of the program at other offices ie different street addresses is prohibited unless separate licenses have been purchased for each office LIMITED WARRANTY AND REMEDIES This program and accompanying written materials are provided on an as is basis without warranty of any kind either express or implied including but not limited to any implied warranties of merchantability or fitness for a particular purpose ELM has exercised reasonable diligence and has made reasonable efforts to ensure that the pr
24. elow the screen heading throughout the use of this module While in the Planning module you access the yearly estimated detail screen by pressing D You may now input the estimated data with respect to total and personal kilometres driven and employee reimbursements By default if you have entered data in the actual yearly detail screen prior to accessing the Planning module these actual data will carry over to the estimated data fields Once you enter new estimated data only these new data will be kept in memory by the system However if you would like to recover the actual data while in the planning Module you just have to press the F5 function key Once you have entered the estimated data for a particular employee press PgDn or while on the last field press ENTER You will then be provided with the estimated taxable benefit with respect to the particular vehicle for which you entered these data To return to the vehicles list you press any key To access the Per pay period data you press E Estimate while on the Planning List of vehicles This feature will provide you with the per pay period amount required to be added to the employee s gross pay in computing his her deductions at source throughout the year User s Guide Automobile Taxable Benefits Software 6 9 The estimate function becomes available as soon as either the actual or estimated yearly details have been entered EMPLOYEE MANAGEMENT Auto Perform In
25. em Automobile Taxable Benefits Software B 1 APPENDIX B Input Forms Quebec AvanTax System B 2 Input Forms Quebec 64444444444444444444444444444444444444444444444444444444444444444444444444444447 5 5 5 AUTOMOBILE TAXABLE BENEFIT 5 5 INPUT FORM 5 5 AUTOMOBILE OWNED 5 5 5 444444444444444444444444444444444444444444444444444444444444444444444444444444 5 5 5 Emplioyer T pesce rmm terr th 5 5 5 K D AE A a ad E E A EE A SERE E Number 222 2 cs 5 5 5 K 3 3 3 3 3 3 3 3 3 3 3 3 M 5 5 5 VEHICLE DESCRIPTION 5 5 2 5 Description jj Su Wi stele ee cee Ae Su 5 5 Serial number A oe ec dl 5 5 Acquired before 1992 5 5 5 5 Acquisition cost e 0 _ oie 5 5 P S T on acquisition 5 5 5 5 Date vehicle made 5 5 available thy one sr Date returned _ 5 5 5 K 3 3 3 3 3 3 3 3 3 3 3 3 3 3 M 5 5 5 ANNUAL DATA 5 5 5 5 USAGE 5 5 Kilometres driven Total m 324 rw 5 5 Personal 5 5 5 Kip o4 EOS doe Mn uk ws ud Pad whos auge Y eJ oy dead a iM 5 5 5 5 5 REIMBURSEMENTS 5 5 5 5 Standby charge P 5 5 Operating costs 2 5 5 Actual operating costs anii 5 5 Including G S T and P S T 5 5 5 K 3 3 3 3 3 3 3 3 3 3 3 3 M 5 Excluding G S T and P S T 5 5 Only applicable where employee made reimbursements 5 5 with respect t
26. ftware A 1 Input Forms Alberta APPENDIX A AvanTax System A 2 Input Forms Alberta 64444444444444444444444444444444444444444444444444444444444444444444444444444447 5 5 AUTOMOBILE TAXABLE BENEFIT 5 INPUT FORM 5 AUTOMOBILE OWNED 5 444444444444444444444444444444444444444444444444444444444444444444444444444444 5 R Rh Vie pas las 5 5 Employee Number 5 PVD DIDI IID VEHI CLE DESCRI PTI ON Description Serial number Acquisition cost 0 ladado Date vehicle made available Date returned ANNUAL DATA K 5 5 5 5 5 5 5 5 5 5 5 K 5 5 5 5 USAGE 5 Kilometres driven Total SR A P4 5 Personal 5 K 5 5 5 5 5 5 5 5 5 K 5 5 5 5 9 pou d kb 3 bp x ok od Wm b dox de dg cr a REI MBURSEMENTS Standby charge Operating costs Actual operating costs Including G S T 13 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 t Excluding G S T Only applicable 0 le where employee made rei mbursements with respect t personal use of the vehicle AvanTax System c ELM Computer Systems Inc 5 5 5 5 5 5 5 5 5 5 M 5 5 5 5 5 5 5 5 5 5 5 133 3 333 3 3 3 3 3 3 3 3 3 3 3 M 5 5 5 5 5 5 5 M 5 5 5 5 5 5 5 5 5 M 5 5 5 5 4444444444444444444444444444444444444444444444444444444444444444444444444444448 User s Guide Automobile
27. hether sold or not Copying includes translating into another language Copyright 1992 2000 All Rights Reserved by ELM Computer Systems Inc AvanTax System and ATB are trademarks of ELM Computer Systems Inc IBM IBM Proprinter Epson and HP LaserJet are registered trademarks of their respective owners Published by ELM Computer Systems Inc 502 Gordon Baker Road Willowdale Ontario M2H 3B4 Telephone 416 495 1624 Fax 416 495 0044 E Mail support elmcomputers com AvanTax System ii License Agreement PROGRAM LICENSE AGREEMENT SOFTWARE LICENSE AND LIMITED WARRANTY Pease carefully review this license agreement before installing or using this software BY INSTALLING OR USING THIS SOFTWARE YOU ARE AGREEING TO BECOME BOUND BY ALL OF THE TERMS AND CONDITIONS STATED IN THIS LICENSE If you do not agree with any of the terms and conditions promptly return this package and the other items which are part of this product to ELM Computer Systems Inc ELM and your purchase price will be refunded If the complete package has not been returned to ELM within 30 days from the date you take possession of the diskette then you will be deemed to have accepted the terms and conditions of this license LICENSE The AvanTax System Software program is owned by ELM ELM hereby grants to you a non exclusive non transferrable license to use the program You are expressly prohibited from distribution of the program to others outsid
28. ll first have to indicate your user language and then follow the instructions that will appear on the screen If you subsequently want to change the language this can be done by pressing F2 while in the Main Menu screen The original configuration of the System is for colour display monitors You might want to change that when using monochrome monitors This can be done by pressing F3 while in the Main Menu screen Authorization Numbers Your copy of AvanTax needs to be registered to be fully functional To register this copy of the program simply enter the unique authorization number printed on the front cover of you user manual when prompted If you choose not to register the program at this time you can leave the authorization number field blank and hit enter to begin the program However the unregistered program will allow only one company record one employee record and one vehicle record to be entered You will be prompted for the authorization number each time you start the program until the program has been registered New Releases Once you have installed an AvanTax System application on your hard drive you should install new releases for that same application in the same subdirectory The information you have already entered will be preserved Installing on a Network Your Network Manager should install AvanTax System onto your network Install AvanTax System on a network in the same way you would for a single user
29. ne support minimum 5 00 per call Toll Free 800 268 3211 in Toronto 416 495 1624 in French 450 441 3942 Fax Number 416 495 0044 E Mail support elmcomputers com website www elmcomputers com ELM Computer Systems Inc 502 Gordon Baker Road Willowdale Ontario M2H 3B4 AvanTax System Automobile Taxable Benefits Software 2 1 CHAPTER 2 Getting Started Hardware Requirements Computer IBM compatible computer with DOS 3 0 or higher RAM 640K RAM Extended or expanded memory will improve the performance of the program Disk Space At least one megabyte of free space on hard drive Printer A dot matrix or laser printer capable of printing a minimum of 80 columns Installing AvanTax System To install AvanTax System I if you use drive B replace A with B in these instructions 1 Create a subdirectory on the hard drive where you want to save the software recommended name AVANT For example to create the subdirectory on drive C type MD CAAVANT and press ENTER 2 Move to the subdirectory For example type CD AVANT and press ENTER 3 Place the AvanTax System disk in drive A AvanTax System 2 2 Getting Started 4 While in the AVANT subdirectory C AVANT type A INSTALL and press ENTER Starting AvanTax System To start AvanTax System I switch to the subdirectory where you installed the program type in ATX and press ENTER Upon initial execution you wi
30. nefits Software 8 5 b average cost of all new and used automobiles acquired in the year for sale or lease These two items are computed excluding GST HST and PST QST In addition the prescribed amount with respect to operating costs benefit is 12 per kilometre driven for personal use rather than 15 GST HST Computation Reporting and Remittance Computation Generally the amount of the net remittable GST with respect to a particular employee will include 6 106 of the standby charge before deducting reimbursements and 596 of the operating costs benefit also before deducting reimbursements For HST provinces the prescribed rates are 14 114 of standby charge and 11 of operating costs benefit Where the GST HST with respect to employee reimbursements has been remitted throughout the year it will be subtracted from the amount of the net remittable GST HST sincethe calculation of remittable GST HST includes reimbursements Liability In all situations the employer has to remit the amount of the GST HST included in the taxable benefit except in the following circumstances under which an employer will not have claimed an input tax credit ITC on acquisition or lease of the automobile a the employer acquired the automobile in 1991 and was not allowed to claim an input tax credit as a result of section 170 of the GST HST b an election not to claim an ITC was made by the employer pursuant to amended section 173 2 of the GS
31. nformation with respect to the employer We recommend that you use the federal employer account number as the AvanTax file number This standardization will allow for an efficient retrieval system within those organizations where more than one employer will be created Province By default the code entered when the software was installed will appear in the province field This information will set some default parameters in the employee files AvanTax System 5 2 Employer Management The following codes have been set for each province PROVINCE British Columbia Alberta Saskatchewan Manitoba North West Territories or Nunavut Ontario Quebec New Brunswick Prince Edward Island Nova Scotia Newfoundland Yukon A B Ge D E F G H K L Pressing the space bar while on the province input field will allow you to access this list You will then be able to select the proper code by typing the code itself or by using arrow keys to move the cursor to the code province name and pressing ENTER Language The language code is set by default as the language in which the software is being used at the time of creating the employer file The employer reports will be printed in the language indicated here Car Dealership Where the employer operates a car dealership or leasing business you should enter Yes in the car dealer input field This will ensure that salespersons or leasing agents taxable
32. o personal use of the vehicle AvanTax System c 5 5 ELM Computer Systems Inc 5 94444444444444444444444444444444444444444444444444444444444444444444444444444448 User s Guide Automobile Taxable Benefits Software B 3 64444444444444444444444444444444444444444444444444444444444444444444444444444447 5 5 5 AUTOMOBILE TAXABLE BENEFIT 5 5 INPUT FORM 5 5 AUTOMOBILE LEASED 5 5 5 444444444444444444444444444444444444444444444444444444444444444444444444444444 5 5 xdi A BBERAAGEMN 5 5 5 5 Employees her owe utum do LLLI NUmbp fn nier lh te 5 5 5 K3 3 3 3 3 3 3 3 3 M 5 5 5 VEHI CLE DESCRI PTI ON 5 5 5 5 DESCRIBED a AA A ree 5 5 Serial number 2 yj LoLo 22222222L 5 5 5 5 Leasing cost MR Period Month 5 5 P S T on lease rede T 5 5 5 5 Date vehicle made 5 5 available DN dad Date returned 5 5 y K3 3 3 3 3 3 3 3 M 5 5 5 ANNUAL DATA 5 5 5 5 USAGE 5 5 Kilometres driven Total 3 o2 5 5 Personal 5 5 E KE qa be dey AT De xax dex A gea qr ys 3 3M 5 5 5 5 5 REIMBURSEMENTS 5 5 5 5 Standby charge 2 LLL 5 5 Operating costs te 5 5 Actual operating costs 3 5 5 Including G S T and P S T 5 5 5 K3 3 3 3 3 3 3 3 3 M 5 Excluding G S T P S T and insurance 5 5 Only applicable where employee ma
33. oftware is inherently complex and may not be completely free of errors you are advised to verify your work In no event will ELM be liable to you for any direct damages and all other incidental or consequential damages including lost profits data and or savings arising out of the use of or inability to use the program regardless of whether ELM or any authorized dealer has been advised of the possibility of such damages occurring This Agreement represents the entire agreement concerning the license and use of the program to which it refers and supersedes all previous proposals and or prior agreements whether written or oral and any other communications by ELM its authorized dealers agents and employees concerning the subject matter hereof No dealer distributor agent or employee is authorized to make any modification or addition to this Agreement and this Agreement cannot be modified except by a written document signed by a duly authorized officer of ELM This Agreement will be governed by the laws of the Province of Ontario Any questions regarding this Agreement or the program including the return of defective diskettes should be addressed to ELM Computer Systems Inc 502 Gordon Baker Road Willowdale Ontario M2H 3B4 416 495 1624 AvanTax System Automobile Taxable Benefits Software v TABLE OF CONTENTS INTRODUCTION re eu ex Re a e EEn RES E EITPY RE RR 1 1 GETTING STARTED drii me ohm af cos sr Sete eC tr 2 1 MENUS deu nt
34. ogram is Year 2000 compliant However ELM assumes no responsibility or liability for damages arising out of the failure of the program to handle Year 2000 issues or arising out of decisions made by you based on using the program This means among other things that ELM is not responsible and you are not entitled to a refund if the program does not meet the requirements for which you license it or if the program will not operate free of error However ELM does warrant that the physical diskettes on which the program is recorded will be free from defects in materials and workmanship under normal use for a period of 90 days from the date of delivery to you If you discover a defect in the physical diskette within the 90 day period ELM will User s Guide Automobile Taxable Benefits Software iii replace it at no charge upon return of the diskette to ELM atthe address stated below along with a copy of your receipt showing proof ofpayment ELM s entire liability and your exclusive remedy shall be the replacement of any diskette which does not meet ELM s limited warranty and which is returned to ELM with a copy of your receipt showing proof of payment If ELM is unable to deliver a replacement diskette which is free of defects in materials or workmanship you may terminate this license agreement by returning the program and related documentation to ELM during the 90 day warranty period and you will be entitled to a refund of your purchase price As s
35. quiry Creation Modification Deletion Exiting Action Menus To return to the previous menu from an Action menu press Esc User s Guide Automobile Taxable Benefits Software 4 1 CHAPTER 4 Printer To choose a printer access the Printer Selection sub menu from the Main menu The Printer Selection Window will be displayed This version of the System supports printers compatible with HP LaserJet Epson dot matrix and IBM Proprinter Select your type of printer from the Printer Selection Window and press ENTER This will confirm your choice This selection will remain operative until modified If your printer can not emulate an HP LaserJet Epson or IBM Proprinter select Other from the Printer Selection Window You must then ensure that your printer is set to print International IBM U S characters The required settings should be listed in your Printer Users Guide This is usually controlled by a DIP switch setting AvanTax System CHAPTER 5 Employer Management Creation To create a new employer file use the Creation command of the Employer Management sub menu The following data input screen will be called up EMPLOYER MANAGEMENT CREATI ON File number Employer name Contact Address City Province F Ontario Postal code Language E F E English Car Dealer Y N N No Average cost 0 Pay periods MEE Is GST on reimbursements reported periodically Y Yes You may now insert specific i
36. r the period a particular vehicle was available or the monthly leasing cost You have to indicate in the field at the right of the leasing cost field whether the leasing cost inserted is for the period for which the vehicle was available by typing P or the monthly lease cost of the vehicle by typing M The software will thereafter determine the total lease cost for the period the vehicle was available If the vehicle was not available to the employee for the entire period and the monthly lease cost is input the program will calculate the total lease cost based on the number of days the vehicle was available However if the lease cost is entered for the entire period the program assumes you have already allowed for the number of days the vehicle was actually available to the employee TIP All costs are to be input excluding GST HST and PST QST The taxes must be input separately or you may press F10 when the cursor is on the PST QST or GST HST HST box to have the system calculate the tax at the rate indicated on the bottom line of the screen The rate is determined by the employee s province If you indicated that the employee is a sales person or leasing agent the acquisition cost will be inserted automatically as the average cost entered in the employer file No PST QST has to be entered in this case After all relevant information has been input you have to either press the ENTER key while in the last input field or press
37. required to first compute the adjusted standby charge and operating cost benefits and then compute the QST taxable benefit 1 Adjusted Standby Charge In computing the standby charge for Relev 1 purposes the cost of the automobile is determined as follows a automobile acquired before 1991 cost is to include federal and provincial sales tax PST b automobile acquired in 1991 cost excludes GST but includes PST c automobile acquired in 1992 or later cost includes both GST HST and PST QST 2 Operating Costs Benefit The Quebec operating costs taxable benefit is computed using the same formulae as the Federal calculation However where the reduced benefit applies this taxable benefit is computed as 5096 of the standby charge computed for Quebec purposes computed prior to any reimbursements made by the employee Car Dealerships and Leasing Businesses These employers have the option no election is to be filed with Revenue Canada Taxation or the Minister of Revenue of Quebec to compute the automobile taxable benefit standby charge using a reduced factor of 1 596 instead of 296 where the employee is employed principally i e more than 50 in selling or leasing automobiles If the employer uses the option for purposes of the computation the cost of the automobile will be determined as the greater of a average cost of new automobiles acquired in the year for sale or lease User s Guide Automobile Taxable Be
38. s Employee Detailed Computation The program allows you to print both estimated and actual final employee detailed computations The printing of these reports is effected in the same manner as the Employer Summaries The employee selection will allow for the printing of all employees or one When the cursor is in the employee selection field you will be able to print all employees detailed computation by pressing the space bar and the ENTER key If you choose to print all employees you will be prompted to select the sort order of the employee reports To print one particular employee s detailed computation enter part or all of his or her name in the same format you created his her file or type and press ENTER to view the list of available employees You can select a particular employee by pressing ENTER while the employee name is highlighted Where the reduced benefit election applies the applicable election form will be printed automatically when printing the employee s detailed computation If an employee has more than one vehicle with dates in the current or planning year and these vehicles are either all leased or all purchased you will be asked Do you want to print combined vehicle reports Y N In some cases it may be beneficial to merge the vehicles together as if they were one vehicle by using the average acquisition cost and the totals of the kilometres driven days available and amounts reimbursed Answering yes
39. s Software 1 1 CHAPTER 1 Introduction The AvanTax System has been developed by a group of professional accountants with a view to support accountants and other professionals in the tedious task of computing taxable benefits AvanTax System will allow you to compute automobile taxable benefits in a fraction of the time With its user friendly approach and its standardized questionnaire for orderly capture of required information the AvanTax System will allow you to proceed with the computation of such benefits in an efficient and reliable manner The System performs logical operations on the data and interacts with the user where certain elections alternatives are available The System has been developed to provide Human Resources Departments with an appropriate tool to manage the automobile taxable benefits of all employees This is your AvanTax Users Guide It is designed for computer users of all experience levels Use this guide to learn the basic skills and as a reference document once you have familiarized yourself with the basics Technical Support As a registered user you will receive notices from us of upgrades to AvanTax System I Software and you may telephone or fax us with your questions about the installation and use of the Program The first 30 minutes of support are free ofcharge In the event you should require additional technical assistance after this time has been used our rate is 60 00 per hour for telepho
40. the GST HST legislation the personal use of a vehicle by an employee or shareholder will be deemed to be used in commercial activities of the employer and therefore generally an automobile provided to an employee will be AvanTax System 8 2 About the Legislation considered 10096 used in commercial activities Some exceptions will occur where the automobile is used in GST HST exempt activities i e charitable organizations or financial services Computation of Taxable Benefits Federal The computation of the automobile taxable benefit for purposes of the ITA is made up of two components the standby charge benefit and the operating costs benefit This section provides a summary of the rules affecting the computation for both employer owned and leased automobiles Basic Taxable Benefit 1 Standby Charge a Employer Owned Car i if business use is less than 90 296 x number of months x cost of the vehicle including PST and GST HST ii if business use is equal to or greater than 90 2 X personal km max 1 000 kms x no of months no of months x 1 000 kms x no of months x cost of the vehicle including PST and GST HST User s Guide Automobile Taxable Benefits Software 8 3 b Employer Leased Car ifbusiness use is less than 90 2 3 of lease costs including GST HST and PST excluding insurance ii if business use is equal to or greater than 90 personal kms max 1 000 kms x no of months
41. tion year 1996 GST was collectible on reimbursements in respect of taxable benefits in the reporting period in which the reimbursements were made For 1996 and subsequent taxation years the GST HST in respect of the reimbursements is deemed to have been collected on the last day of February in the following taxation year As a result GST HST is not collectible on reimbursements in the period in which they are made However because some employers may have remitted GST HST on reimbursements during the year you may indicate this on the Employer input screen to ensure that the accurate amount of remittable GST HST is reported on the Net Remittable GST HST report Where GST HST is reported during the year the amount of GST HST deemed included in such reimbursements will be subtracted from the Net Remittable GST HST report Inquiry The Inquiry command will allow you to access an existing employer file You will be prompted to indicate if you want to access the file by using the employer name or file number If you know the file name or number which you want to access you may now type this name or number in the appropriate field If you want to scroll through the list of available companies you just have to press the ENTER key If the inquiry key chosen was file name the file name will be listed AvanTax System 5 4 Employer Management followed by the file number However if the inquiry key selected was file number the file number will
42. vehicle you have to provide the date it was made available to the employee Should the vehicle have been made available prior to January 1 of the current year you can input January 1 as the date that the vehicle was made available If you wish you may still enter the actual date a vehicle was made available since this information will be available for future reference Date Automobile Returned The input of the Date of return is important since the software will automatically determine the number of days an automobile was available to an employee If the automobile is still available to an employee on December 31 you just have to press the ENTER key to leave it blank and the software will assume that the automobile was still available on that date Dates Available and Returned for Sales person or Leasing agent Where the taxable benefit with respect to an employee of a car dealership or leasing business can be computed using the reduced standby charge percentage you must enter both the date at which the employee was provided with a vehicle and the return date By default December 31 of the current year will be inserted in the date of return field Owned Leased Once you have identified whether the automobile is owned or leased you will be prompted to input the acquisition or leasing costs and related taxes User s Guide Automobile Taxable Benefits Software 6 5 With respect to leasing costs you may insert the total leasing cost fo
43. will cause the taxable benefit to be calculated for the combined vehicle rather than the individual vehicles The report that is generated will list Combined Vehicles as the vehicle name Important Note The combined vehicles method is not explicitly prescribed by Revenue Canada It has been included in the program at the request of users Data Entry Form This form has been designed to standardize and ease the process of information gathering with respect to automobile taxable benefits It is designed so that all required information to perform the benefit computation is listed This form questionnaire can be printed with some basic information such as the employee name and vehicle description or a blank form can be printed We strongly recommend that it be used since the employee detailed input screen displays the same pattern in an effort to speed up the input process User s Guide Automobile Taxable Benefits Software 7 3 Election Form This form should be filed with the employer where the reduced benefit computation is determined to be beneficial to an employee see Operating Costs Benefits computation at 8 3 Where the reduced benefit computation is beneficial and the employee will make this election this form is automatically printed with the employee detailed computation However as mentioned in the legislation part of the Guide this election is to be filed with the employer prior to December 31 of a particular taxation year

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