Business and Corporate Tax Returns (T2)

The T2 tax form is used by Canadian corporations to report their business income.

Generally a Canadian corporate tax return is due no later than six months after the end of the corporation’s fiscal year end.

As an example, if a corporation has a fiscal year end of June 30th, the tax return is due to be filed by December 31st at the very latest.

When the filing deadline for your Canadian corporate tax return falls on a Saturday, Sunday, or public holiday the return will still be considered on time if it is received on the first business day after the filing deadline.

A Canadian corporate tax return must be filed every year, even if the corporation did not make a profit.
It’s important to remember you and your tax preparation people are a team and you’ll want to work together with them to ensure you get the most return money in an honest manner. That said, here’s a few tricks businesses and people have tried with their taxes that almost always send up red flags for accountants and auditors alike.

  • False Deductions. People who come back with extra write-offs after their taxes are done can set off warning bells when they don’t have the receipts to back up their claims.
  • Low Income. People who claim abnormally low income for their industry or numbers that don’t coincide with their own averages run the risk of getting audited.
  • Business Versus Personal Use. Escalating write-offs that aren’t properly documented raise the suspicion of the CRA and some cheaters even go so far as to set up dummy business entities so they can write even more off.

Remember, honesty is the best policy for a number of reasons including the fact that if you cheat on your taxes and get caught, you can be looking at large fines and even worse, depending on the severity of the offense.

Contact National Tax Service for help filing your business’ tax return.