Corporation Tax Returns
Corporate Accounting with Adept Bookkeeping Services
Corporations are required to follow stricter accounting standards, and at Adept Bookkeeping Services, we ensure that our clients meet these high standards—just as we do for our own operations. Once you incorporate, the way you withdraw money from the company changes, and Adept will guide you through the process. Options include paying yourself a salary, issuing dividends, or utilizing a shareholder’s loan account. The shareholder’s loan is a helpful option for newer or smaller businesses, but it is also subject to close scrutiny by the Canada Revenue Agency (CRA). It’s always best to consult a professional about how to withdraw funds from a corporation and the potential tax implications.
With few exceptions, corporations are required to file a T2 corporate income tax return annually, even if no taxes are due. Corporate tax returns must be filed within six months of the fiscal year’s end. However, corporate taxes owed must be paid within three months after the fiscal year ends. A corporate fiscal period cannot exceed 53 weeks. If you are owed a refund, your corporate tax return must be filed within three years of the fiscal period’s end to claim it.
Even if your corporation is tax-exempt, or inactive, a T2 filing is still mandatory. Adept Bookkeeping Services will handle all aspects of your corporate tax preparation, including preparing the Balance Sheet, Income Statement, and filing the T2 return. We’ll need specific documentation from you, but we aim to make the process as smooth as possible.
What We’ll Need:
- Expense receipts
- Bank and credit card statements (preferably organized by month with corresponding receipts)
- A clean audit trail in case the CRA decides to review your records
Additional documents include:
- A copy of your provincial Corporate Registration Papers (e.g., ISC)
- All CRA correspondence, including GST notices
- Corporate head office address
- Corporate business number
- Articles of incorporation
- Fiscal year-end date
- Access to your corporate books and records
- Previous year’s T2 tax returns
There may be additional forms or schedules required, and we’ll be sure to inform you of everything we need to complete your corporate tax preparation.
Timelines and Tax Planning
Our standard turnaround time is four weeks, though during peak season (March to June), this may extend to eight weeks. To avoid any delays and ensure your corporate filings are submitted on time, we recommend utilizing our tax planning services. This will help you keep everything running smoothly throughout the year and avoid any last-minute surprises.
Contact Us
Get in touch with our team for any general inquiries or to learn more about our suite of financial services. We are here to assist you in navigating the complexities of your business’s financial landscape with precision and expertise.