Corporate tax is a complex and technical area of expertise. Whether a company is a small start-up business or multi-million-dollar entity, each business has its own unique tax filing requirements and tax-saving opportunities.
In Canada if you own a resident corporation then you are required to prepare a corporate income tax return(T2). When you fill out your first corporate return you must declare a year end for your corporation. A benefit to incorporating is you can choose any date in the year to be your company’s year end. In Canada, a corporation can file their return up to 6 months after its year end. However, taxes must be paid within 3 months of the year end so many corporations elect to file at the same time.
Getting organized is the first step in preparing a corporate tax return in Canada. Filling out your T2 corporate income tax form will require many supporting documentation.
Before beginning you should make sure the following is done:
- Find and organize your expense receipts by month
- Print and sort all bank and credit card statements by month
- Attach receipts to corresponding monthly bank or credit card statement
By completing these three steps you will ensure all documentation you expect to claim on your return is accounted. Below is a link providing a list of Corporate Year End documents.
Corporate Year End Tax Preparation Document Checklist
Whether filing on your own or with an accountant, proper documentation and information before hand can save you time and money with your corporate tax return.
Scott Gray CPA, CMA is a chartered professional accountant and offers the following services:
- Corporate tax return (T2) preparation
- Corporate tax planning
- Holding company structuring
- Salary vs. dividend consideration
- Income and capital tax minimization
- GST/HST return filing
Scott Gray, CPA, CMA and his team lead a full-service accounting practice based in Oakville, Ontario, offering a broad range of services to meet the needs of businesses, entrepreneurs, and individuals in Oakville, Burlington, and surrounding areas.