People have called us in Ottawa and asked “file my corporate tax return” never do that. What I mean is never just ask for the corporate taxes to be filed without ensuring that the year-end is complete. In addition, before asking for corporate tax return preparation, ensure that you have had a tax strategy.
Ensure that the bank and credit card reconciliation are complete
Ensure that your HST reported for the year matches the income in your profit and loss (P&L) statements
Ensure that HST balances are reflected correctly in your balance sheet
Ensure that if you you want or need to issue bonuses
Ensure to consider paying dividends
Ensure you have accounted for Due to shareholder
Ensure all your account receivables are captured and recorded
Ensure that all your account payables are captured and recorded
Ensure that you have deprecated your assets correctly
These are the basics items that you need to consider before you file your corporate tax return.
I would highly recommend to seek a professional accountant a CPA to prepare your corporate tax return. I have seen corporate tax returns prepared in personal tax return. It could have been a misunderstanding but if a CPA was consulted I am extremely confident that they could have uncovered it.
I have also seen so called professional just grabbing the net income and filing a corporate tax return. This could get technical however, there are certain add backs or deductions that were not taken into account. Once those correct the corporate tax owing would be significantly different. In addition, the director of the corporation, perhaps you, is responsible since they looked at the reports and signed it.
I have also seen corporate tax returns where the sales numbers did not match corporate numbers.
Also cases where major asset sale was not reported, the justification was ridiculous.
In all these cases, do me a favour and ensure that you see a CPA. There are lots of great CPAs in Ottawa who can help you. If not us, I can even give you recommendations on who to see. This is serious, I mean once you have gone and incorporate your business, it means that you are serious. So now you MUST choose a professional to prepare this for you. Unfortunately there are no dollar store for corporate tax returns, even if there were, do not choose that.
I mean, when you want a root canal would go see an unlicensed dentist? or seek the cheapest service? Of course not.
Here are the deadlines to file personal and corporate tax returns and payroll, HST
There are deadlines to file various types of tax returns in Canada
Personal tax returns or T1s – Deadline is April 30th
Personal tax returns which has self-employment income – Deadline is June 15th
Corporate tax return or T2s – Filing deadline is 6 months after year-end however, any amounts owing is due 3 months after the year-end
Payroll and source deductions submissions – For monthly filers – Deadline is 15th of the following month
HST – Quarterly HST has to be filed 1 month after the 3 month period
Note – If the deadline falls on a holiday. The deadline would fall one day after the holiday.
Note – Even if you don’t have the money to pay the amounts owing file it so that you can avoid paying penalties.