Corporate Tax Returns
According to the Canada Revenue Agency, all resident corporations (with the exception of crown corporations and resident charities) have to file a corporate income tax (T2) return every tax year.
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Corporate Tax Returns
According to the Canada Revenue Agency, all resident corporations (with the exception of crown corporations and resident charities) have to file a corporate income tax (T2) return every tax year. The T2 return must be filed even if there is no tax payable. Resident corporations that must comply with this rule include but are not limited to the following:
● Non-profit organizations
● Tax-exempt corporations; and
● Inactive corporations
A tax year is a corporation’s fiscal period. All T2 returns must be filed no longer than six months after the last day of a corporation’s tax year, and if any amount of money is owed in the form of corporate income tax then tax payments must be made no later than 90 days after the end of the tax year. For example, if your corporation’s fiscal year ends on December 31 then the corporate return must be filed by June 30 of the following year, but any taxes owed must be paid by March 31. If the return is filed too late or if there are any late payments, the corporation will be subject to interest and penalties by the CRA.
But if your corporate taxes are giving you a headache then give us a call. Here at Ottawa Bookkeeping, we are a full service accounting firm that provides a variety of tax services including corporate tax services. Our professionals will act as your business’s corporate tax accountant and can work with you in person or remotely. Our professionals will ensure that your T2 return is filed no later than six months after the end of each tax year.