Corporate T2 tax return preparation in Ottawa

Start with reconciled financial information

The file includes the trial balance, financial statements, prior return, assessments, fixed assets, loans and shareholder transactions. We also identify associated corporations, changes in ownership and unusual transactions that may affect the preparation.

Salary, dividends, reimbursements and shareholder funding should not be grouped together as owner withdrawals. Their documentation and tax treatment differ. Where bookkeeping is incomplete, the cleanup work and return preparation are scoped separately so the underlying figures can be trusted.

An owner-managed company example

Imagine a hypothetical Ottawa consulting corporation whose bank payments include $18,000 sent to its owner. The record review finds $11,000 of supported expense reimbursements and $7,000 requiring a different classification. Treating all $18,000 as salary, dividends or business expense without evidence would bypass the actual facts.

Separate the tax calendar from the annual return

T2 filing is generally due six months after the corporation’s tax-year end. The income-tax balance is generally due after two months, or three for a qualifying corporation under CRA conditions. Instalments require their own schedule.

A corporate registry annual return is another obligation; preparing a T2 does not automatically complete it. We confirm the required financial package and filing method, flag complex matters for appropriate review and retain the approval and submission evidence. Tax rates and deductions are applied to the eligible income and circumstances, not to a generic revenue total.

Questions about this work

Put this into practice

• Incorporated business owners →
• T2 filing and payment dates →
• Year-end package →