Taxation is regarded as something most important if you are running your own business in Canada. Most people prefer to have their own personal accountants. Importantly, to keep an eye on their tax returns & filling of the returns in the most accurate manner & time. The Canadian Corporate Tax Return also known as T2 is a company tax return which needs to be filed by company ownership. Thus, so that they take proper custody & proper authority of their company legal matters. Corporate tax return is a type of a tax return and if you are into an ownership of a company. Associated with you, i.e. with a registered name. Obviously, you need a detailed understanding of how to handle a CTR.
Filling of a tax return is an implication. Hence, obviously if you are registered as self-employed business owner. However, you don’t have a company. You are just operating as self-employed business owner & working for yourself.
THE DEADLINE FOR FILING T2 CORPORATE TAX RETURN:
Unlike a PTR or personal tax return. The corporations have a choice of their own. That is, about the setting of their tax year. Once you make a decision & set your fiscal year end, i.e. something which is having a dependency on your business incorporation date. Than, obviously you must file your T2 CTR or corporate tax return. That is, within the six months after the end of your business fiscal year. For instance your business fiscal year ends up in the month of June. Obviously, you need to file the CTR or Corporate Tax return before the end of the year. That is, before Jan 1st next year or upcoming year. Just in case, if the filing deadline is falling on a weekend or a holiday. Ironically, it can carry on the next business day.
Just in case, if your corporation owes you tax. Hence, it needs being paid-off in the middle of the month, i.e. June 30.
If you are unable to pay the Canadian Corporate Tax Return. The corporation shall be liable to pay the interest on the outstanding amount. Thus, which will keep piling up if you keep ignoring the payments. As long as you are falling in line. That is, filing your tax before the deadline. Certainly, you won’t get any late filing penalties. As a good business owner, just be aware of the penalties that you shall be paying.
THE BEST & MOST HELPFUL TIPS FOR FILING YOUR T2:
Some of the best & most important tips that will help in the filing of CTR or T2. That is, the corporate tax returns are as follows;
BE MORE ORGANISED:
You need to be more organized in terms of all your tax filings. Hence, which will automatically keep you intact in terms of the CTR or Corporate Tax Returns. Keep a track of all your financial activities which includes credit card statements and all sort of bank statements. Obviously, the paperwork shall make you more aware of the tax returns. A separate file for the PTR & CTR shall be the best things in terms of being more organized.
KEEP A GOOD TRACK OF ALL YOUR TRANSACTIONS:
The transactions that you are making, you need to keep a track of them. When you are in-doubt just make a double check. A proper file work shall make you more aware of your expenses. Also, your revenues and your net income numbers.
These are the records that shall include, the articles of association. Also, the bank statements, receipts & the invoices. Furthermore, the deposit slips, agreements and letters from the CRA. Use of software that includes the QuickBooks can be a massive help in the proper tracking of all your transactions.
KEEP FILING THE RETURNS ON TIME FOR AN EXCELLENT RECORD:
For the sake of maintaining an excellent record you need to keep filing with regards to special emphasis on time. Your focus should be to avoid penalties as being the best practice.
THE FINANCIAL STATEMENTS:
Importantly, put the needle on the record earlier than expected. Obviously, by having your company’s income statement & the B/S or balance Sheets ready. It is not strictly that all corporations need the audited FS or financial statements. Therefore, you need discussing with the accountant in advance what’s best for you.
HOW TO FILE THE CTR:
You can hire the services of a specialised accountant for the filing of the returns. That is, the Canadian Corporate Tax Return. This is also known as company tax return. Alternatively, & simply corporate tax returns.
The CTR can even be filed online if the company has accomplished a certain threshold of a revenue. In technical accounting terms in Canada. It is known as T2 Corporate tax. Thus, as the form for the CTR is T2 form. In the provinces of Quebec and Alberta there are added returns. That is, CO-17 Corporation Income tax returns for Quebec. Furthermore, for the Alberta Province its AT1. That is, Alberta Corporate Income Tax return.