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Schedule 5 Error: Jurisdiction selected but T2 return will not submit

This article explains how to fix a Schedule 5 validation error by removing the Salaries and wages amount from Part 1, Allocation of taxable income when the corporation operates in only one jurisdiction.

Written by Arani Tharmalingam

Issue

You may see an error on Schedule 5 saying that a jurisdiction has not been selected, even though you have already selected your province or territory, such as Nova Scotia.

This can happen when the Salaries and wages amount is entered in Schedule 5, Part 1, Allocation of taxable income, but the corporation operates in only one jurisdiction.

Why this happens

The Allocation of taxable income section is generally used when a corporation needs to allocate income between more than one province or territory.

If your corporation operates in only one jurisdiction, you do not need to complete the allocation details for multiple jurisdictions.

How to fix it

  1. Go to Schedule 5 in your T2 return.

  2. Open Part 1, Allocation of taxable income.

  3. Remove the amount entered under Salaries and wages.

  4. Make sure only the correct jurisdiction is selected.

  5. Validate the return again.

  6. Try submitting the return.

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