Corporate tax, handled with care
Once your business is incorporated, it becomes a separate taxpayer with its own filing obligations. Every year the corporation files a T2 Corporation Income Tax Return with the CRA, supported by financial statements and a series of schedules. An Alberta corporation will generally also file an Alberta corporate return (AT1) with Alberta Tax and Revenue Administration.
We prepare all required schedules and documentation for Canadian federal and provincial corporate tax filings, in compliance with the legislation. Our corporate tax return price is $625, and we work with small and medium size businesses and corporations in Edmonton, Sherwood Park and surrounding areas.
We believe the more we know about a client's affairs and organization, the better we can meet their needs. That's especially true for corporations, where the return connects to your bookkeeping, payroll and GST, and to your own personal taxes as a shareholder.
What goes into your corporate filing
A complete corporate filing is more than one form – here's what we prepare and review.
T2 return and schedules
The federal T2 Corporation Income Tax Return with the schedules that apply to your corporation's activities.
Alberta corporate return
Generally, an AT1 return filed with Alberta Tax and Revenue Administration.
Year-end financial statements
Financial statements prepared from your books at year-end, which form the basis of the return.
Owner compensation
A review of salary and dividends paid to shareholders, so the related T4 and T5 slips line up with the return.
Reconciliations and review
Checks that bank balances, GST, payroll and shareholder accounts agree with the books before anything is filed.
Deadlines that apply to corporations
A corporation must file its T2 return within six months of the end of its fiscal year. The deadline is tied to your year-end rather than the calendar, so two corporations with different year-ends will have very different filing dates.
Payment deadlines come sooner. The balance of tax is generally due two months after year-end, or three months for certain Canadian-controlled private corporations. That means you often need to know what the corporation owes well before the return itself is due – one more reason to keep the books current through the year.
Missed deadlines can lead to penalties and interest. If your corporation is behind on a filing, contact us; it's always better to deal with it sooner rather than later.
Year-end financial statements start with good books
Your corporate return is only as accurate as the books behind it. Before we can prepare year-end financial statements, the year's transactions need to be recorded, categorized and reconciled to your bank and credit card statements.
If your bookkeeping is current, year-end is mostly a matter of review and adjustment. If it isn't, we can bring the books up to date with our bookkeeping service at $100 per hour, and we'll tell you before any bookkeeping charges apply, so there are no surprises on top of the $625 return.
- Bank and credit card statements for the full fiscal year
- Sales invoices and records of amounts owed to you
- Bills and receipts for expenses
- Payroll records, remittances and the T4 Summary
- GST returns filed during the year
- Loan, lease and asset purchase documents
- Details of amounts paid to or from shareholders
How a corporate year-end works with us
A straightforward process from your fiscal year-end to filing.
- 1
Get in touch after year-end
Call (780) 439-0050 or book online at Whyte Ave or Sherwood Park. Earlier is better, especially if tax may be payable two or three months after year-end.
- 2
Send your records
Bring or send your books, statements and supporting documents, and we'll let you know if anything is missing.
- 3
Bring the books up to date
If bookkeeping is needed first, we tell you before we start; it's charged at $100 per hour.
- 4
Prepare statements and returns
We prepare year-end financial statements, the T2 and its schedules, and the provincial filing.
- 5
Review and file
We go through the results with you, including any tax payable and points to plan for in the year ahead, and then file.
Beyond the return: a long-term relationship
A corporate tax return happens once a year, but the decisions that shape it happen all year long. Hiring staff, buying equipment, taking on a loan, changing how you pay yourself – each one affects the numbers at year-end. We encourage clients to contact us throughout the year with any challenges, so we can help in a practical, reasonable and efficient manner.
Many corporations also need payroll, GST returns or help with CRA reviews and audits. Because we see both your books and your return, we can help keep these pieces consistent. Pricing for services without a listed price depends on the work involved, and we'll tell you before we start.
If you're a sole proprietor wondering whether to incorporate, our business set-up service can help you understand the structures available in Alberta, from sole proprietorship and partnership to a corporation incorporated provincially or federally.