Corporate Tax Returns

Who Must File a Corporate Tax Return(T2) in Canada?

According to Canada Revenue Agency (CRA) except crown corporations and resident charities, ALL resident corporations, non-profit organizations, tax-exempt corporations, and inactive corporations, have to file a tax return EACH year even if there is no tax payable! 

A non-resident corporation has to file a T2 return if, at any time in the year, it carried on business in Canada, it had a taxable capital gain, or, in some cases, it disposed of taxable Canadian property.  

When Should Corporation Tax(T2) be Filed?

The basic rule for filing your Canadian corporate tax return is that you must file your return no later than six months after the end of each tax year. So, when your T2 tax return is due depends on your corporation’s fiscal year-end. If, for instance, your corporation has a fiscal year-end of June 30th, your Canadian corporate tax return would be due on December 31st (the last day of the sixth month).

If your corporation’s fiscal year-end falls on a date during the month rather than at the end of the month, then your T2 tax return Canada will be filed by the same day of the sixth month after the end of the tax year. If, for example, your corporation’s fiscal year-end was June 20th rather than June 30th, your Canadian corporate tax return would be due on December 20th of that year. 

And if the filing deadline for your Canadian corporate tax return is a Saturday, Sunday, or public holiday? The Canada Revenue Agency (CRA) advises that “we will consider the return filed on time if you deliver, mail, or transmit it on the first business day after the filing deadline.”  

It is mandatory to file your T2 tax return Canada on time, or you will incur late payment penalties. If you have any doubts about your situation, don’t guess; contact a tax professional. At Filing Taxes, we observe every detail and make sure the Corporate Tax Return and preparation are done the right way and get filed with CRA on time. 

When Should You Pay Corporation Tax?

Dates for filing and paying the balance owing to CRA are different. Be aware that the time frame that you have for paying your corporate taxes that are due is quite a bit shorter than the amount of time you have to file your corporate income tax.

Corporate income tax has to be filed each year within six months of the end of a corporation’s fiscal year. However, if there is a balance owing, it has to be paid within two months of the end of the corporation’s fiscal year or, paid within three months if the corporation is a Canadian-Controlled Private Corporation (CCPC).

Corporations have to pay corporate income tax in monthly or quarterly installments when the total of the taxes payable for either the previous year or the current year is more than $3,000. If there is an unpaid balance owing at the end of the corporation’s fiscal year, it needs to be paid off too.

The tax department considers the payment to have been made on the day they receive it, and not on the day you mail it. So, it is advised to mail it a little early.

Can I file my Own Corporate Taxes in Canada?

You can choose to do your own accounting, including preparing financial and filing your tax return. Trying to do it on your own may seem feasible to you but could be a bad decision if you lack the extensive knowledge required to do so.

When you have an incorporated or limited company, your tax filing obligations are a little different. It can be difficult to do everything yourself, and there are severe penalties if you make a mistake.The amount of information in the Income Tax Act (ITA) often proves too much for the average business owner to stay on top of on their own. Since every business is different, it’s important to look at your situation to decide what you need, from simple accounting support to complete day-to-day bookkeeping activities. Even if you have some working knowledge of accounting, managing your books can take up a lot of your time. As an entrepreneur, time spent on accomplishing accounting tasks can take away all your focus from tasks that could directly grow your business. 

Accountants are experts in business finance, and if you hire an expert accountant, he will be able to take a lot of the stress out of filing your taxes. Specialists at Filing Taxes give you a go-to source for all those financial questions that come up during the course of running a business. We can help you meet all of the legal requirements, avoid any penalties, and also advise you on matters to help you grow your business. 

What are the benefits of hiring a Professional Accountant?

Accountants and other tax professionals can be worth their weight in gold during tax time, especially when it comes to legal and compliance issues. A professional accountant is an expert who handles important accounting and income tax-related issues and works on advising and consulting businesses to make better financial decisions.  

Whether you have a large, medium-sized, or small business, maintaining your accounting books is essential. When you choose to hire an internal accountant, he comes with the knowledge of one person. But when you hire a professional accountant from a best accounting firm, their knowledge and services are not limited to just one person, and you get access to the varied services they provide which will prove helpful for your business. Professional accountants at Filing Taxes, bring with them their knowledge and expertise in accounting to help you with your bookkeeping, tax management, and business advisory as well.  

So, let us take care of your corporate accounts enabling you to focus on other business-related responsibilities. Filing Taxes will work on your accounts while you work on your business! We are certainly the go-to corporate  tax accountant in Toronto.

Why Choose Us as Your Accounting Firm in Toronto?

With decades of corporate tax experience, the professional accountants at Filing Taxes can help your business with tax-efficient solutions. We take pride in building a very devoted and hard-core relationship with our clients. We are committed to giving you a customized tax plan to help you save more on your corporate tax. We ensure to prepare and file your corporate tax return accurately and on time. We make sure to meet the deadlines without compromising the quality of our services, while also considering the best tax minimization strategies for your business. 

Whether you are just starting your corporation, thinking of expanding or already operating in multiple countries, we have just the solution for you.  Our experienced accountants have a wide range of experience working with businesses of all sizes. In addition to our comprehensive corporate tax return services, we provide a full range of services for your business including bookkeeping, preparation of financial statements, managing important notices, compliance, and cross-border tax planning.  

Our Professional Accountant is skillful and knowledgeable who comes up with easy solutions to meet the corporate world’s requirements.We provide comprehensive corporate income tax planning for our clients. We plan to take advantage of all possible credits through which the corporate tax burden can be significantly lowered. Our team of educated and experienced professionals will ensure you file a corporate income tax return that triggers the least amount of corporate tax payable. 

Our tax planning and preparation services not only aim to minimize tax liability but also maximize value by positioning companies for future growth. We advise both private and public companies at all stages of growth, tailoring our strategies to their needs, and helping them expand as clients mature. Our professionals work closely with clients and remain accessible and responsive throughout the year to help them to achieve their most important business goals. 

We also identify opportunities that will help minimize long-term tax burdens, review the effectiveness of business structures, and advise on tax implications of proposed transactions. We also help corporations and shareholders to plan both corporate and personal income taxes to minimize both corporate and personal tax burdens.   

At Filing Taxes, we foster the changing role of the tax professional – bringing together tax professionals and automation to amplify collective capabilities. Our professionals proactively learn to leverage new technologies and cultivate the capabilities they need for the digital world. We embrace digital platforms for the exchange of client information with the proper application of advanced confidentiality measures to be taken in proportion with the increased security risks of the internet age.

What Can We Do for You?

Our accounting firm in Toronto has diversified experience in business to meet the needs of the corporate world. We hold expertise in below mentioned corporate tax services according to CRA guidelines.

• Preparation and filing of corporate income tax returns (T2)
• Canadian Corporations with US Tax compliance requirements
• US Corporations and LLCs having Canadian tax filing requirements
• Corporations having non-resident shareholders
• Income tax services for Non-Resident and Foreign Corporations in Canada
• Preparation of information returns including T4s, T4As, and T5s
• Back tax filings for Corporations – multiple years of tax filing for corporations
• Voluntary Tax Disclosure and Tax Appeals
• Corporation Income tax planning services
• Corresponding with federal (CRA) and provincial tax authorities
• Filing Tax elections
• File HST returns
• Payroll Deductions and Contributions, and remittances

Our Exceptional Corporate tax service – Last-minute Tax Rescues

We understand that certain circumstances like team members unexpectedly left during tax season, and you could not complete your books, or your accountant forgot to tell you about a fast-approaching filing deadline can make you fall behind deadlines. So, you need some urgent help! Not sure, where to start from? Professional team of Filing taxes is your ultimate rescuer in this situation. We know how to tackle the mess and relieve you of fears of filing corporate tax on tight schedules.  

We are experts in helping clients to catch up on last-minute tax filing and compliance. How do we do it? It is simple. After decades of experience in preparing corporate tax returns for thousands of clients, we developed an expertise in working on large-scale accounting data and income tax compliance requirements following a variety of timelines.

How much does an accountant charge for a tax return in Canada?

We have a number of accounting packages available for clients who choose to run their business and not worry about their books. We always customize our accounting services to suit your individual needs. Simply tell us what needs to be done and we will provide you with afree estimate.