Filing a Corporate Tax Return

All businesses in Canada that are registered as corporations have to file a corporate tax return. The official name of the corporate tax return is the T2 form. Corporations in Canada have to file this corporate tax return every year even if they don’t have to pay ant taxes. Non-resident corporations also have to file a corporate tax return if they carried out the bulk of their business in Canada or if they disposed of property within Canada. If you do have to file a corporate tax return, you will have to download it from the Canada Revenue Agency website of obtain one by calling the toll free number.

You can prepare your own corporate tax return by using software approved by the CRA. This software will generate a form for the corporate tax return and information to help you fill it out and a copy of the return to keep for your files. One of the benefits of using this software to complete your corporate tax return is that once you are finished and have checked it over, you can file the return electronically. There are also specific deadlines you have to adhere to when filing your corporate tax return. This is important because the deadlines for the corporate tax return as different than those for individual tax returns. Your deadline for filing your corporate tax return will depend on the end date of your taxation year, which is called the end of your fiscal year. You must file your corporate tax return no later than six months after this date. The penalty for late filing of your corporate tax return is 5% of the amount owing for each month the corporate tax return is late.

There are specific regulations of acceptable deductions for the corporate tax return, For example, for the 2007 corporate tax return corporations that made donations of medicine or made a donation to a developing country can claim any such donations as gifts if they were made after March 2007. There are also specific levels of political contributions allowable for each province in the information provided with the corporate tax return. Before you submit your corporate tax return check it over carefully to make sure you have your full name and address and that there are no mistakes in your business number. Any mistake in this area could cause a problem with the CRA processing your corporate tax return.