# Alternative Minimum Tax Form T691 - Line 67



## ronsohn (Apr 30, 2015)

My wife and I are now retired and so we are now dependent on investment income. I am trying to determine if my wife or I are subject to Alternative Minimum Tax and have been attempting to complete the Federal T691 form. However, I am stuck on what to do for Line 67 under Part 3 - Regular net federal tax payable. Line 67 states: "Federal surtax on business income earned outside Canada: multiply the amount from line 66 by 48%. If you have to pay provincial or territorial tax to multiple jurisdictions, multiply the result by the percentage in Column 5 of line 5222 on Form T2203. In either case, enter the result on this line." (Note - Line 66 is the amount of our Basic Federal Tax, so 48% of it is not just a little number.)

Since we have no Foreign Business Income earned outside Canada (although we do have Non-Business Foreign Income from T3 slips from Mutual Fund Companies), I was thinking that such a surtax would not apply to us, and that this line should therefore be left blank or zero. Likewise, we do not have to pay provincial or territorial tax to multiple jurisdictions (just our home province of residence) so it sounds like this aspect does not apply to us either. Nevertheless, the instructions don't say "Only if you have business income earned outside Canada" or "If you have any Foreign Income (Business Income or Non-Business Investment Income)" ............ then multiply the amount from line 66 by 48%. Rather it just states: "multiply the amount from line 66 by 48%" like there is no choice. 

Does anyone out there know for sure whether this line does or does not apply to us, whether it should be left blank/zero by us, or whether we must do the calculation no matter what as the wording of the instruction seems to suggest. It makes a big difference - if the Calculation is included, then we must pay substantive minimum tax, while if we leave it zero, we are not subject to alternative minimum tax. I also can't figure out the underlying reason for or intent of this line and calculation. And what's happening overall within form T691 isn't very clear or intuitive to me - seems rather complex. 

I need this info urgently to complete my taxes and get them in, and to make the right payment, so your help would be much appreciated. Thanks ................... ronsohn


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