T2 Corporate Tax Return Services
Your corporate tax return should reflect accurate financial information, properly considered tax positions and a clear understanding of what happened in the business during the year.
More Than Entering Numbers on a Tax Form
A corporate year-end normally involves reviewing the company’s records, resolving accounting issues, preparing year-end financial information and then completing the T2 corporate income tax return.
The return should connect logically to the corporation’s books and financial statements. Shareholder transactions, asset purchases, payroll, HST, dividends and prior-year balances can all affect the final result.
Podolsky Accounting provides coordinated corporate year-end and T2 filing support so business owners know what is being filed and what requires attention next.
This Service May Be a Good Fit If You:
- Own an incorporated business in Ontario
- Need your annual T2 return prepared
- Need year-end financial statements as well
- Have bookkeeping that requires adjustment
- Are changing accountants
- Have one or more overdue corporate returns
- Need clearer answers about corporate tax
What a Corporate Year-End Can Include
The exact scope depends on the quality of the records and the corporation’s activities.
Financial Record Review
Reviewing the trial balance, general ledger, bank reconciliations and supporting information for significant accounts.
Year-End Adjustments
Recording appropriate year-end entries for items such as accruals, capital assets, shareholder balances and income taxes.
Financial Statements
Preparing the corporation’s year-end financial information in the form appropriate to the engagement.
T2 Corporate Return
Preparing and electronically filing the federal and Ontario corporate income tax return and applicable schedules.
Tax Balance & Deadlines
Explaining expected corporate tax balances, instalment considerations and important payment or filing dates.
Follow-Up Items
Identifying bookkeeping, payroll, HST or corporate-record issues that should be addressed going forward.
Common Corporate Tax Issues
- Shareholder loan balances and personal expenses
- Salary versus dividend compensation
- Capital asset additions and dispositions
- Investment income earned inside a corporation
- HST and payroll accounts that do not reconcile
- Loss carryforwards and prior-year tax balances
- Late or missing corporate filings
- Changes in ownership or business activity
What We Usually Need From You
The starting information commonly includes:
- Bookkeeping file or trial balance
- Year-end bank and credit-card statements
- Prior-year financial statements and T2 return
- Asset purchase and financing documents
- Payroll and HST summaries
- Details of shareholder transactions
- CRA notices or correspondence
Where the books are incomplete, the required clean-up can be identified before the return is finalized.
A Clear Corporate Tax Process
Initial Review
We discuss the corporation, its year-end, the state of its records and any current deadlines or concerns.
Records & Year-End Work
The accounting information is reviewed, questions are resolved and necessary year-end adjustments are prepared.
Return, Explanation & Filing
The T2 return is completed, key results are explained and the return is filed after authorization.
Corporate Tax Return Questions
When is a T2 corporate tax return due?
A corporation generally files its T2 return within six months after its taxation year-end. The corporate tax balance may be due earlier, commonly two or three months after year-end depending on the corporation’s circumstances.
Can you prepare the financial statements and T2 together?
Yes. For many owner-managed corporations, the year-end financial information and corporate tax return are prepared as one coordinated engagement.
What if the bookkeeping is incomplete?
The records can be reviewed to determine what clean-up or reconstruction is required before reliable year-end figures and the T2 return can be completed.
Can you help if several returns are overdue?
Yes. The outstanding years can be identified and completed in sequence so that each year’s opening balances connect properly to the prior year. Learn about catch-up filing support.
Do I need to visit the office?
Not necessarily. Most corporate year-end engagements can be handled remotely using electronic documents, telephone calls and online meetings.
Ready to Discuss Your Corporate Year-End?
Call or text Podolsky Accounting to discuss your T2 return, financial statements, bookkeeping condition and any filing deadlines.