It comes every year, it comes fast, that’s your corporate business taxes. Filing a corporate tax return is a required part of the year-end process for all incorporated businesses. This can be a stressful time for business owners who do not know how much tax they might owe, or what allowable business expenses they can claim. That’s is where we come in! With our extensive experience focusing on small businesses, we can walk you through all the possible business expenses that can be used to reduce your tax owing balance.
About corporate taxes
Once you incorporate a business you are required to file a corporate tax return annually based on your fiscal year end. All of the business’ income will now be reported within the corporate tax return with various business expenses being utilized to reduce the business’ net income.
The filing deadlines for corporate returns are as follows:
- The tax balance owing deadline is three months following the businesses fiscal year end but options can be discussed further if this not possible.
- The tax filing deadline is six months following the fiscal year end of the business.
However, it is important to note that if a business is taxable and does not pay its taxes by the tax payment deadline the business will be charged interest. In addition to a corporate tax return, you may also be required to file a GST return, T5 (dividends) or T4 (employee slip).
GST – You are required to register for a remint GST when you’ve hit the threshold of $30,000 in four calendar quarters. Unless requested otherwise a business is automatically assigned to an annual deadline. There are three different filing deadlines associated with GST – monthly, quarterly and annually if you are eligible or voluntarily request on of these other filing periods.
T5 and T4 slip – Businesses with employees and/or shareholders must report earnings and deductions on a T5 or T4 slip annually. These slips are required to be filed with the CRA by February 28th regardless of one’s fiscal year-end date. Some small business owners are unaware of this which results in late filing leading to penalties.
What can we do for you?
At White Raven we specialize in small businesses. As a small business ourselves, we know all the best ways to optimize your business expenses in a way to keep your taxes as low as possible while following all the tax guidelines set by Canada Revenue Agency (CRA). As we work through your file, we will also keep an eye out for ways we can help your business be more efficient and cost effective. In addition, our services extend to being able to assist with reporting investment income and performing investment bookkeeping for investment holding companies.
Contact White Raven Accounting & Bookkeeping
If you have any questions or would like to book a consultation, please submit your name and contact information and we will get back to you as soon as possible.