Corporate Tax Return (T2)
We prepare and file T2 corporate income tax returns for Canadian corporations, ensuring full CRA compliance while minimizing your tax liability. Our team handles everything from financial statement preparation to identifying all eligible deductions, credits, and tax deferrals specific to your industry.
Key Benefits
Minimize Corporate Tax
Strategic tax planning to ensure your corporation pays the least amount of tax legally possible.
Full CRA Compliance
Accurate filing that meets all CRA requirements and deadlines, avoiding penalties and audits.
SR&ED Credits
We identify and claim Scientific Research & Experimental Development credits where applicable.
Year-Round Support
Our team is available throughout the year, not just at tax time.
Frequently Asked Questions
When is the T2 filing deadline, and when is the tax owing due?
The T2 return is due 6 months after the corporation's tax year end. The income tax balance is generally due 2 months after year end; a Canadian-controlled private corporation that claimed the small business deduction (current or previous year) and meets the CRA's previous-year taxable income and business-limit tests — including the associated-corporation rules — has 3 months. These are two different deadlines: filing late and paying late are penalized separately.
Does my corporation have to file a T2 even with no activity?
In most cases, yes — resident corporations generally must file a T2 every tax year, including inactive, dormant and non-profit corporations, even with no tax payable. The main exceptions are corporations that were registered charities throughout the year, tax-exempt Crown corporations and Hutterite colonies.
What is the penalty for filing a T2 return late?
The standard penalty is 5% of the unpaid tax plus 1% of it for each complete month the return is late, up to 12 months. If the CRA issued a demand to file and you were charged a late-filing penalty in any of the previous three tax years, the penalty is 10% plus 2% per complete month, up to 20 months. Additional penalties can apply to large and non-resident corporations, and interest accrues on unpaid balances.
What documents do you need to prepare our T2?
Articles of incorporation and share structure, complete financial statements (income statement and balance sheet), the general ledger and bank statements for the fiscal year, asset purchase invoices for capital cost allowance claims, payroll and dividend records (including T5 slips filed), and the prior-year T2 return and Notice of Assessment.
Do we need audited financial statements for our T2?
Most small and medium-sized businesses do not require audited statements for tax purposes. A T2 must be supported by complete financial statements, which we prepare from your bookkeeping records — no separate audit engagement is required.
Can you prepare the financial statements too, or do we need a bookkeeper first?
We prepare financial statements as part of the T2 engagement. If your records are incomplete, our bookkeeping team can bring the books up to date first so the statements — and every claim on the return — are properly supported.
What is this service?
A T2 corporate income tax return reports a corporation's taxable income and calculates the tax it owes to the CRA. Most resident corporations — including inactive and non-profit ones — must file a T2 each year, even with no income; exceptions include corporations registered as charities throughout the year, tax-exempt Crown corporations and Hutterite colonies. Accountants Online prepares T2 returns and supporting financial statements for corporations across Canada, fully online.
Who needs this service?
Most resident corporations must file a T2 annually, even inactive or tax-exempt ones. Non-resident corporations that carried on business in Canada or disposed of taxable Canadian property may also need to file, subject to CRA exceptions. If your business is incorporated federally or provincially, a T2 is generally required for every tax year.
What documents are required?
- Articles of incorporation and share structure
- Financial statements: income statement and balance sheet
- General ledger and bank statements for the fiscal year
- Asset purchase invoices for capital cost allowance (CCA) claims
- Payroll records, dividends paid (T5 slips filed), and related-party transactions
- Prior-year T2 return and Notice of Assessment
Key deadlines
The T2 return is due within 6 months after the end of the corporation's tax year. The income tax balance is generally due 2 months after year end; a Canadian-controlled private corporation has 3 months when it claimed the small business deduction and meets the CRA's previous-year taxable income and business-limit tests, including the associated-corporation rules.
Common mistakes to avoid
Missing the filing deadline (the standard penalty is 5% of unpaid tax plus 1% per complete month, up to 12 months — higher when the CRA has issued a demand to file), assuming inactive corporations don't need to file, bookkeeping that is too incomplete to prepare statements, missed CCA claims, and failing to file T5 slips when shareholder dividends are paid.
How to get started
Book a free 15-minute consultation. We'll review your situation, tell you exactly what we need, and give you a flat-rate quote before any work begins. Everything is handled online through your secure client portal.
Get started — request a consultation