Corporate Tax

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Who has to file a corporate income tax return?

All resident corporations, with the exception of registered charities, must file a corporate income tax return every year, regardless of whether or not taxes are payable.
A non-resident corporation has to file a return if, at any time in the tax year, one of the following situations applied; the corporation carried on business in Canada, the corporation had a taxable capital gain, the corporation disposed of taxable Canadian property.

What has to be filed?

Corporations are generally required to file a corporate income tax return (T2) with the Canada Revenue Agency (CRA). Separate provincial corporate income tax returns are required for each province in which the corporation has a permanent establishment. Beginning in 2009, all Corporations resident in Ontario will file one combined tax return to CRA.

When must you file your corporate income tax return?

Your corporate income tax return must be filed no later than 6 months after the end of each tax year. For example, if your year-end was December 31st then your return would be due no later than June 30th.

Why file on time?

Failing to file your return as and when required can result in interest, penalties, and in rare cases imprisonment. The CRA also publishes convictions, which are damaging for you and your businesses reputation.

If you fail to file a return, the penalties (for first-time violators) are 5% of the unpaid taxes, plus 1% for each complete month that the return is late, up to a maximum of 12 months.

When are corporate income tax instalments due?

Corporate income taxes are generally due in quarterly instalments for eligible Canadian-controlled private corporations when the corporation’s taxes payable in the previous or current year, exceed $3000. The balance of taxes payable are due within two or three months of the corporation’s year-end, depending on the circumstances. Late instalments are subject to interest and penalties.

How long does it take for the Canada Revenue Agency to process your return?

The CRA processes approximately 90% of returns within 60 days of being received.

LYNORR can assist you in complying with Canadian tax legislation by:

• Determining your Canadian federal and provincial tax filing obligations.
• Preparing and filing your Canadian federal and provincial tax returns.
• Identifying advantageous tax minimization strategies.

Please click on the topics below to find out more.

Maintaining Adequate Canadian Tax Records
New Business Canada Revenue Agency-info-

Business year end preparation checklist

Existing clients (pdf)
New clients (pdf)

Frequently Asked Questions

Important deadlines (pdf)
Helpful websites & Phone Numbers website (pdf)