Research shows that Canada boasts the highest rate of tax collection compliance internationally. The Canada Revenue Agency’s collection efforts and tasks have also lead to the immense growth of public finance in the country.
The CRA is seriously after your corporation tax filing accuracy and completeness. A big portion of CRA tax staff is assigned in audit or collection roles. CRA auditors are very aggressive in pursuing tax filers in the accuracy of their tax returns. If you have their debt CRA tax collection agents will chase you until you pay it back. If you refuse to pay it in full, and on time, or if you refuse to collaborate with the CRA about your debt resolution, they could take you to court.
No corporation can ignore its corporation tax filing except the registered charities, Crown corporations,etc. Corporations must file their corporation income tax T2 return each tax year. They must file it even when they have made losses. Inactive, tax exempt and not-for profit organizations should file the T2 income tax return as well. For corporations that make more than one million Canadian dollars in annual gross revenues, they must do their corporation tax filing on the internet.
Do you own a non-resident corporation? If so, you may be required to do your T2 corporation tax filing in given circumstances. A non-resident corporation must file a return if these circumstances have applied to it at any time of the year:-
- It has done transactions within Canada.
- It has sold a taxable Canadian property. As from March 5th 2010, the definition of the taxable Canadian property was changed. It now excludes corporation shares and specified interests which, in the two-month duration ending at the time of determination, do not draw their value from the immovable property or real property located in Canada.
- It has capital gains that are taxable.
- It has filed form NR6
- It has filed form T1288.
To get a better understanding of non-residence and residence corporate income taxes, call a reputable tax firm. It will assign to you a tax consultant to explain matters to you. Besides, the firm’s representative could offer to do the CRA corporation tax filing on your behalf.
The timeline to submit your corporation tax reports is no later than six months after the end of each tax year/fiscal period. To get the T2 returns, in order to do your corporate tax filing, you can get in touch with an experienced local tax firm, if you do not have the training or experience required to do it properly personally.