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Corporate Tax Accountant

CORPORATE TAX ACCOUNTANT TO FILE YOUR CORPORATION TAX

The Canada Revenue Agency applies a corporation income tax (T2) to all resident corporations (except royal corporations or resident charities) every year, even if there is no tax. This includes:

We are Corporate Tax Accountant to file your corporation tax.

A non-residential corporation files a T2 return if it carries on business in Canada at any time in the year. It either had a taxable capital gain or, in some situations, it sold taxable Canadian property. Sections 248(1) and 253 of the ITA clarify some of these concepts, which may help you if you have to find out tax applicable things:

Share of private companies in Canada
Canadian real estate
Real estate utilized for Canadian business operations
A few corporate trust interests with Canadian residents
Significant stock holdings in publicly traded firms (greater than 25% owned by affiliates)
Partnership interests

As corporate tax accountants, we ensure that your business tax return will never be filed later than six months after the end of each tax year. The fiscal period of a corporation corresponds to its tax year.

The tax year ends on the last day of the last month, and you can again file your tax returns up to the end day of the sixth month. Always remember this, though the tax return has a gap of six months after the end of the tax year, you must file it within three months if you have any money in the form of corporate income tax.

When a corporation should file its income tax return

For corporations, tax years are distinct from those for people. Your corporation’s fiscal season finishes after the tax year, which means you must submit and pay corporate income tax at that time. As it is mentioned, you can file your corporate income tax up to the end day of the six months after the end day of the tax year.

Generally, you should find out your net profit and loss within three months after the completion of the tax year so that you can easily file a tax return.

To avoid fines, you must also submit your return within the deadline. An additional percentage of your unpaid tax may be required as a penalty if you file your return late. These penalties can pile up rapidly.

It would be best if you saved some money that could contribute to you paying taxes later, so always keep money on hand. If you didn’t file your return by the due date, you must do it no later than three years following the end of the tax year if you want to get your refund.

What financial documents are required for filing your corporation income tax?

As you may already be aware, keeping records is crucial for running a business. Here, let us inform you what you might require:

Payroll and invoices
Financial records
Receiving and sending assets
Expenditure and spending receipts

It can be important to keep information about your home, which you use as a business office if you run your business from home. Whether you maintain all the records by yourself or hire a small business accountant Vaughan for this, for tax return purposes,

You’ll also require:

bills you have paid
Information about GST/HST returns
Last year’s tax filings
A copy of your paperwork
Accounts payables and receivables
Employee pay deduction
The recent notice of assessment of your business records

What further do you require to submit your corporation tax return?

Make sure that you are filing your corporate income tax online if your corporation’s total net income is more than one million dollars, as required by CRA. Additionally, you must be very knowledgeable about the General Index of Financial Information (GIFI), which organizes deposits and funds to collect and handle financial data.

You must retain at least six years of records of tax filings that you pay by yourself or through your corporation so that if CRA wants to assess your company, you can show them. If you are continuously losing money, have no assets, or earned less than $5,000, you must still pay corporate income tax.

Penalties for late filing

If you fail to pay your T2 taxes on time, penalties will quickly add to your taxes. These fines are 5% of the total paid tax, plus an additional 1% for each month that has passed after the end day of the last tax year. If the CRA delivers a demand to file and there was a failure to file in any of the three prior tax years, the late filing penalty could increase to 10%.

The conclusion here is to submit your taxes on time because you’ll thank yourself afterward.

Penalties for late payment

Interest is added continuously on a daily basis if there are late or insufficient installments. If the late payment interest of your corporation exceeds $1,000, you may have to pay an extra installment as a penalty.

More penalties can be applied to you if you have false records, less information in corporate tax return files, advises someone to claim a false tax return, or have ambiguity in statements. For more penalties, you can visit the website of the Canadian revenue agency.

If there is an unwanted natural disaster such as a flood or the death of a family member, CRA can inhibit you from filing your corporate tax returns or can forgive you. But statements like “I was busy with important tasks”, “I forgot to pay taxes” or “my internet was not running” will never count.

Here, there are no words to use to lower taxes, so submitting your company’s taxes is difficult. While working with a CPA, it is advised to ensure that you are filing taxes, paying the correct amount at the appropriate time, and taking advantage of all available deductions.

Additionally, our bookkeeping firm Vaughan service can provide much-needed relief during the most hectic time of the year, if your records aren’t up-to-date.

Let us help you with corporate tax filing!

One big mistake is being unaware of which tax return you must file right away or filing it too late.

Preparing files by yourself for your corporate tax returns is not the best way to grow your business. You can make numerous mistakes, which act as a loophole for CRA tax auditors. Preparing files and making plans for future tax payments in advance is very valuable for handling financial crises during tax season. That is why people hire professional corporate tax accountant firms that have a high level of expertise in this area.

So, being professional corporate tax accountants, we will be your proud decision. We ensure you will save your time and money. We also make sure the reduction of your tax return is up to the possible limit and allow you to focus on expanding your small business while working in your most productive area. If you are serious about cutting your tax burden, don’t waste your time, contact accountants in Vaughan or send a message we will be right there to help you.

Corporate Tax Accountant