CORPORATION INCOME TAX RETURN

Canadian corporations are required to file corporate income tax (T2 return) every tax year even if their earning is nil, or no taxes are payable. This includes
  • inactive corporations
  • non-profit organizations and
  • tax-exempt corporations

Most corporations can file their return electronically (efile) or in paper format. Corporations with annual gross revenue exceeding $1 million are mandated to file electronically. For these corporations paper filing is not allowed.

New corporations in their first year often make the mistake of incorrectly choosing the Year-End reporting period. Only an expert can help you decide the right period saving you maximum taxes. Even nil return is not as simple as it looks! We strongly recommend to consult with us before you file nil return. We can help you benefit in future tax years.

HST RETURN AND REBATE

Some small businesses such as taxi or limousine services are required to register for the GST/HST even if their revenue is less than the threshold of $30K

You have to register for a GST/HST account if:

  • you provide taxable property and services in Canada; and
  • you no longer qualify as a small supplier

Generally,

you no longer qualify as a small supplier if your total revenue including from worldwide sources exceeds $30K. In some cases, it may be beneficial for you to voluntarily register for GST/HST even if your revenue is less than 30K. Only an expert can guide you better. In other cases, considering your revenue to be more than 30K, you may rush to register for GST/HST. However, it may still not be compulsory for you to register.

There are many GST/HST rebates that you can claim even without registration, but these are time-based.