The CRA’s T2 Schedules for corporations. The common T2 Schedules for 2022

When we file our corporate taxes, it is not as simple as filling out a T2 and filing it with the Canada Revenue Agency (CRA). Moreover, to the T2, you must submit your corporation’s tax obligations “schedules” as part of this procedure. These schedules are essential to provide CRA with supplementary information about your corporation’s filings and tax returns.

Here is a list of some commonly used T2 schedules for corporations in 2022:

1. Schedule 1 T2

2. T2 Schedule 100

3. T2 Schedule 50

4. T2 Schedule 125

5. T2 Schedule 4

6. T2 Schedule 8

7. T2 Schedule 3

8. T2 Schedule 7

9. T2 Schedule 6

10. T2 Schedule 141

11. T2 Schedule 5

12. T2 Schedule 10

There are two types of CRA T2 schedules:

1- Calculation schedules: These schedules are beneficial to calculate net income, deductions, taxable income, and credits.

2-Information schedules: They consist of general information related to transactions.

Despite these schedules, corporations need to put their files into financial statement information using the General Index of Financial Information (GIFI) with their T2.

Here, we’ll go over some of the most common 2022 schedules that may be required as part of the corporation’s T2 filing. Please do not hesitate to contact our team if you require more detailed information about schedules.

T2 Schedule 100

This schedule contains balance sheet information, a required schedule that must be filed with a T2. To organize a corporation’s assets, liabilities, shareholder equity, and retained earnings clearly and concisely, it uses GIFI information.

This schedule consists of those corporations who don’t use preparation software for GIFI to report their balance sheets. They should ensure that if their corporation’s balance sheet is larger than the space on one form, they can also attach other necessary schedules. A company should always recheck the balance sheet before submitting it. Any error in the balance sheet schedule can damage the company’s reputation. The results of these errors can become the reason for audits and fines. 

T2 Schedule 125  

T2SCH125, Income Statement Information, is a required schedule that should be filed with a T2.

This schedule applies to expenses and revenue that are related to your corporation. Depending on your industry, this is divided into farming and non-farming expenses and revenue. 

T2 Schedule 141

Schedule 141 consists of questions designed to determine who prepared the financial statements and their level of involvement. It helps to identify the type of information contained in the notes to the financial statements. These questions are the best way to check the qualification of an accountant and whether he has engaged subjectively with the corporation.

Schedule 1 T2

In most of the situation schedules, 1 is a required form when filing a T2. Schedule 1 uses a net income for income tax purposes. It is used to reconcile the tax profit and accounting profit because the accounting profit and taxable income are two different things. Your corporation tax rate needs to be found out. Schedule 1 helps you determine expenses, deductions, and other exceptions to calculate your taxable profit.   

T2 Schedule 50

In Canada, all corporations have shareholders. T2SCH50 is consists of shareholder information. This schedule is only filed if you have a private corporation and any of your shareholders have 10% or more of your preferred or common shares.  

T2 Schedule 3

Corporations only need to file this schedule if it has paid dividends to shareholders or it has to dividends received from any other companies. In case any corporation did not meet these conditions, there is no need to file schedule 3. 

T2 Schedule 4

During the existence of a corporation, if it has a history of losses, then schedule 4 is helpful to calculate it. This is only applicable to farm, restricted farm, capital, and non-capital loss.

T2 Schedule 5

This schedule is used for revenue allocation provinces where the corporation has already established.

Here are the few conditions where schedules 5 must be filed if,

1- Corporation has Permanent establishment in more than one jurisdiction

2- If a corporation claim provincial or territorial credits

3-It has to pay taxes for new Newfoundland and Labrador

T2 Schedule 6

T2 schedule 6 applies to those corporations who disposed of or sold their assets. You have to provide the summary and dispositions of capital property. The list of assets that you will summarize is property, bonds, equity, and anything else in this category.

T2 Schedule 7

T2 schedule 7 only applies to active business income and aggregate investment income. If a company does not have investment income, it will not be responsible for filing schedule 7.

T2 Schedule 8

This schedule is based on capital cost allowance. This calculates the depreciation of the physical assets of the corporation. This depreciation will not be included at the tax level. 

According to tax law, a corporation will be entitled tax depreciation rate according to the previous depreciation rate.

Filing CRA T2 Schedules

Your company’s legal and financial health depends on tax obligations, so never ignore them. Here is the solution to your problem at filingtaxes.ca The tax specialists and CPAs will file the relevant schedules when filing your corporate taxes with a qualified accounting firm. 

Finally, this article has provided you with great information. Get ready to learn how we can simplify your corporate tax filing. If you have any questions or doubts, contact our team of experts. You can get personalized support here.