Corporate Tax Return (T2)

A T2 Corporate Tax Return is the mandatory income tax return that all corporations operating in Canada must file with the Canada Revenue Agency (CRA) each year. Whether you run a small business, a professional corporation, or a large enterprise, timely and accurate filing of your corporate taxes ensures compliance with CRA regulations and helps you avoid penalties.

Who Should File a T2 Corporate Tax Return?

Under CRA regulations, all resident corporations in Canada, including:
✔ Private corporations (including incorporated small businesses and startups).
✔ Professional corporations (such as doctors, lawyers, and consultants).
✔ Non-profit organizations that carry out commercial activities.
✔ Inactive corporations that have not earned any income during the tax year.
✔ Foreign-owned corporations with a presence in Canada.

Exceptions: Certain non-resident corporations or tax-exempt entities may not be required to file, but in most cases, a T2 return is mandatory regardless of whether a corporation earns income or not.

When Should You File a T2 Corporate Tax Return?

The deadline for filing a T2 return depends on the corporation’s fiscal year-end:
📅 Corporations must file their T2 tax return no later than six months after their fiscal year-end.
📅 Corporations owing taxes must pay the balance within two months of the fiscal year-end (or three months if they qualify as a Canadian-Controlled Private Corporation (CCPC) and meet specific income criteria).

For example:
🔹 If your corporation’s year-end is December 31, your filing deadline is June 30 of the following year.
🔹 If your corporation’s year-end is March 31, your filing deadline is September 30.

Failing to meet the payment deadline results in interest charges, even if the filing deadline has not yet passed.

Consequences of Failing to File Your T2 Corporate Tax Return

Failure to file your T2 corporate tax return on time can lead to serious financial and legal consequences, including:
⚠ Late Filing Penalties – CRA imposes a 5% penalty on the unpaid tax amount plus 1% per month for up to 12 months. If repeated offenses occur, penalties can be doubled.
⚠ Interest Charges – CRA applies compound daily interest on overdue taxes starting the day after the payment deadline.
⚠ Loss of Tax Benefits & Deductions – Missing deadlines may cause your corporation to lose eligibility for tax credits and deductions such as the Small Business Deduction (SBD).
⚠ Risk of CRA Audits & Reassessments – Frequent non-compliance can lead to tax audits, financial scrutiny, and legal enforcement.
⚠ Dissolution of Your Corporation – Prolonged failure to file corporate taxes could lead to forced dissolution of your business under federal or provincial corporate laws.

File Your T2 Return with TaxCan Accounting and Taxes – Reliable & Professional Service

At TaxCan Accounting and Taxes, we specialize in hassle-free and accurate corporate tax return filing. As a CRA-authorized EFILE provider, we ensure your T2 return is filed on time and in compliance with tax laws.

🔹 Maximize Corporate Tax Savings – We identify all eligible deductions and credits to lower your tax burden.
🔹 Efficient & Secure EFILE Submission – Fast, accurate, and CRA-compliant electronic filing.
🔹 Corporate Tax Planning & Compliance – Avoid unnecessary tax payments and ensure your corporation is tax-efficient.
🔹 CRA Audit Assistance – We help businesses handle CRA audits and reassessments effectively.

Don’t risk penalties or financial loss—contact TaxCan Accounting and Taxes today for expert T2 corporate tax return filing and ensure your business stays compliant and financially optimized!