Corporate Income Tax — T2

Your annual T2 corporate return — prepared from your financial statements and filed with the CRA within six months of your fiscal year-end. We handle the full return including all required schedules and the GIFI financial statement submission.

Accurate preparation reduces the risk of reassessment and ensures the small business deduction and all available credits are correctly applied.

• Full T2 preparation and CRA e-filing
• Schedule 1 reconciliation of net income to taxable income
• Small business deduction (SBD) calculation and tracking
• GIFI financial statement schedules (100, 101, 125, 141)
• Notice of assessment review and follow-up

CCA deductions reduce taxable income and must be tracked precisely across asset classes. We maintain your Schedule 8 from year to year, apply the accelerated investment incentive where it applies, and plan around terminal loss and recapture on dispositions.

• Schedule 8 preparation and multi-year UCC tracking
• Accelerated investment incentive (AII) and immediate expensing
• Half-year rule application on additions
• Recapture and terminal loss calculation on disposals
• Class selection guidance on new asset purchases

The mix of salary and dividends paid to owner-managers has a direct impact on both corporate and personal tax. We model the optimal remuneration structure for your situation, taking into account RRSP room, CPP contributions, and corporate retained earnings.

• Salary vs. dividend analysis for owner-managers
• GRIP and RDTOH account tracking for eligible dividends
• Integration with shareholder T1 personal returns
• Bonus timing strategies to manage year-end tax liability
• Holding company dividend flow review

Most corporations are required to remit quarterly tax installments. We calculate the amounts owing under the prior-year or current-year method, whichever minimizes cash outflow, and provide a payment schedule for the year ahead.

• Quarterly installment calculation and schedule
• Prior-year vs. current-year method comparison
• Arrears interest avoidance planning
• Year-end balance estimate to support cash flow planning
• Installment remittance reminders

CRA queries and audit requests require a precise, well-documented response. We represent your corporation in correspondence with the CRA, prepare supporting documentation, and handle formal objections where the assessment is incorrect.

• Response to CRA review and audit requests
• Supporting documentation preparation
• Notice of objection filing and follow-up
• Voluntary disclosure review where prior-year errors exist
• Director liability advice for corporations with outstanding obligations