When it comes to preparing for the Corporate tax year-end, whether it is for a small start-up business or a large corporation, each business has its own tax filing requirements and tax-saving opportunities.
If you own a resident corporation then you are required to prepare a corporate income tax return (T2). Your first corporate return will require a year-end for your corporation. If you choose to incorporate the benefit is you can choose any date in the year to be your company’s year-end. In Canada, a corporation can file its return up to 6 months after its year-end. Many corporations choose to file at the same time as taxes must be paid within 3 months of their year-end.
Getting organized is your first action in preparation and requires all supporting documentation.
You should prepare as follows:
- Organize all your expense receipts by month
- Sort all bank and credit card statements by month and print them for your file
- All your receipts should be with the corresponding monthly bank or credit card statement
This ensures all the paperwork is ready for your return. I have provided a checklist of Corporate Year End documents.
Corporate Year-End Tax Preparation Document Checklist
Whether you choose to file your taxes on your own or with an accountant, having all the proper documentation and information beforehand 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.