For tax experts: "Foreign income tax paid" in "Other deductions"?

I noticed that UFile has included the %26quot;foreign income tax paid%26quot; amount (T5 box 16) under %26quot;Other deduction%26quot; (T1 line 232). I can%26#039;t find any information in the guide for line 232 about why this would be allowed. I thought foreign tax paid is already claimed under %26quot;Federal foreign tax credit%26quot; in Federal schedule line 405. The explanation for box 16 on the back of the T5 slip doesn%26#039;t mention %26quot;other deduction%26quot; either. How does this work?

For tax experts: %26quot;Foreign income tax paid%26quot; in %26quot;Other deductions%26quot;?

Hi SC,

Foreign non business tax paid are to be claimed either as a foreign tax credit or as an %26quot;Other Deduction%26quot; via section 20(12) of the income tax act. Techincally to determine the proper treatment you need to know what country the foreign income comes from and the tax rate of that jurisdiction.

I assume that you have a small amount of foreign tax paid on a T3? In those cases most tax softwares automatically assume a 20(12) deduction for simplicity sake, and CRA appears to be just fine with that.

Cheers!