Corporate Tax Services Canada
Ortus Accounting provides corporate income tax services in Toronto, GTA and Ontario.
DID YOU KNOW THAT TAXATION IS ONE OF THE MOST COMPLEX AND CHALLENGES ASPECTS OF ACCOUNTING?
Corporations are separate legal entities. Each corporation must complete and file a T2 Corporate income tax return each year. It applies to every corporation that operates in Canada. Even if that corporation was inactive or has no income tax payable that tax year. This includes:
- non-profit organizations
- tax-exempt corporations
- inactive corporations
The only exceptions to this rule are tax-exempt Crown corporations and Hutterite colonies. It also include corporations that were registered charities throughout the year. In addition, any non-resident corporation also must file a return if, at any time in the year, one of the following situations applies:
Carried on business in Canada
Had a taxable capital gain
Disposed of taxable Canadian property
Corporate Tax Preparation Canada
This requirement applies even if the corporation claims that any profits or gains realized are exempt from Canadian income tax due to the provisions of a tax treaty. Once the financial statements are prepared, adjustments are required to reconcile accounting income to income for tax purposes. There can be many or few additions and deductions. The formula to calculate income for tax purposes included in section 3 ITA. It applicable to the corporations as well as individuals. In addition to complexity of corporate taxation, there are other factors that needs to be considered. It includes tax planning for both corporation and as well as owner of the business.
Among other things you need to know
Your corporation need to file corporate tax return every year within six months of the end of its fiscal year
Any amount of money is owed in the form of corporate income tax must be paid no later than three months (90 days) after the end of the tax year
Corporations have to pay income tax in monthly or quarterly installments. Unless, the total of Part I, Part VI, Part VI.1, and Part XIII.1 taxes payable for either the previous year or the current year is $3,000 or less
If you file your return late, a penalty applies. The penalty is 5% of the unpaid tax that is due on the filing deadline. Plus 1% of this unpaid tax for each complete month that the return is late, up to a maximum of 12 months
Every corporation is required by law to keep records of all transactions. It includes support for the income, expense claims and property records. These documents must be kept organized, be reliable and complete. It also includes the information needed to meet your tax obligations and to calculate your credits. You must keep your paper and electronic records for six years from the end of the last tax year that they relate to. If income tax return filed late, keep your records for six years from the date you file your return. Certain records must be kept longer. These include minute books, which have to be kept until sometime after dissolution. You also responsible for protecting your records, even if you hire a third party to hold them for you. It includes accounting or bookkeeping firm. Also, you responsible for making your records and supporting documents available to the CRA for examination when it asks. Typically it happens in the event of an inspection, audit or review.
Corporate Tax Return Canada
Preparation of a Corporate Income Tax Return Toronto requires knowledge and expertise. The Canadian Income Tax Act is in a constant state of flux. It can cause many business owners to calculate their taxes incorrectly. No one wants to pay more in taxes than they have to. In addition, underpaying can bring the CRA knocking on your door. You also might be unaware of deductions and tax breaks that you are legally entitled to. Or might simply make a mathematical error. We offer quality tax preparation and proactive tax planning strategies. The goal is to reduce tax obligations, identifying opportunities to protect your earnings and safeguard your assets. We keep tabs on revisions to the tax laws. Thus, our methods are always up to date and ensure you won’t be subject to any tax penalties.
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Corporate Tax Preparer Toronto
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Corporate Tax Filing Toronto
Corporate Income Tax Return Canada
Corporate Income Tax Return Toronto
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For more information or to receive a free consultation, call us at (647) 877-5605 or complete contact form.