A corporation must file its T2 return six months after its fiscal year-end. Any tax owing is generally due within two or three months of year-end, depending on the corporation’s status.

Common deductions include salaries, utilities, rent, vehicle expenses, office supplies, advertising, professional fees, meals (50%), travel, and business-related software/equipment.

Both have advantages. Salary creates RRSP room and reduces corporate taxable income. Dividends are taxed differently and may be more flexible. The best mix depends on your goals — we can help determine the right strategy.

CRA applies penalties and interest on unpaid balances. Late filings also risk losing access to certain small business deductions.

Corporations with a tax liability over a certain amount must make monthly or quarterly instalments. CRA determines the amount based on past filings.

Eligible Canadian-controlled private corporations (CCPCs) can reduce tax on the first portion of active business income. This deduction significantly lowers the corporate tax rate.

Invoices, receipts, bank statements, payroll records, shareholder documents, and financial statements. Records must be kept for six years.