When filing corporate income tax, it needs to be understood that your company tax return obligations would vary from one state to another. While a business owner would have the hassle of administering business activities, they might not be able to administer corporate income tax return preparations themselves. This is where a business tax accountant comes into play.
As experienced accountants, we ask the right questions to determine which specific programs and modules apply to your business. The following is what we at Web tax online do:
- An easy-to-use tax organizer makes tax reporting a breeze – We understand how tax reporting can be difficult for the average business owner, so we’ve put together a simple tax organizer that takes less time than our own customers get on and makes reporting very effective.
- Low-cost tax returns: contact us for the best rates for your accounting and tax needs.
- Harmonized and comprehensive approach – We simply do not record your taxes, but we also make sure that we are here as the main factor in your research.
- Analysis of the financial statements and verification of correct disclosure to ensure that no controls are performed at a later stage.
- Taxation and accounting support – Correct and accurate disclosure of deductible and ineligible costs and correct allocation in each CCA class.
T2 Automatic filling
T2 Auto-fill is a secure service that allows companies and authorized agents to download information from the CRA into their tax preparation software. Using this service will ensure that certain returns and account balances match the CRA data. For more information on what T2 Auto fill offers, see About T2 Auto fill. This service is not mandatory for certified software products. Some include it and some don’t. If you have any questions about the availability of the service, please contact the software product company.
Online registration required
All corporations with gross annual income exceeding $ 1 million must file T2 returns electronically, with the exception of insurance corporations, non-resident corporations, corporations reporting in a functional currency, and corporations exempt from tax payable under the Section 149 of the Income Tax Act. .
Internet presentation and submission
Most corporations, including non-resident corporations, insurance corporations, and corporations that claim a Scientific Research and Experimental Development (SR&ED) amount, can submit returns electronically. You must use CRA approved software that has been certified for enterprise Internet storage. By filing electronically, you’ll receive instant confirmation that the CRA has accepted your return, enjoy faster processing and refunds, save on shipping costs, and help the environment by using less paper.
Frequently asked questions
What are the usual service business tax accountants offer?
Some of our main areas of interest include:
- Compensation planning
- Reorganization
- Presentation and compliance with regulations, including tax returns
- Corporate taxes/ company tax return
- Hubble and other sales taxes
- Representation before the tax authorities
We know that income tax for business filing can be complicated and cumbersome.
Can I complete corporate tax returns myself?
The T2 corporate/ company tax return form requires the General Financial Information Index (GIFI) to be used, and it is recommended that you hire an experienced and professional business tax accountant to properly pass the information to the CRA to avoid any follow-up or deferred inspections.
Why should I pay more to file company tax returns?
The common reason people hire accountants is to avoid mistakes. Submitting inaccurate, incomplete, or late corporate taxes can lead to significant problems, including:
- Sanctions added
- High fines
- Audit by the CRA
Accountants know the ins and outs of business taxes. That being said there’s no guarantee that an accountant won’t make a mistake but the chances of the mistake slipping through the cracks (and reaching the CRA) are far less likely if you have hire a professional.
What if I make some mistakes when filing my corporate taxes?
It is important to select the most accurate business activity the first time, as the first year code carries over to subsequent years, allowing for easy verification of the description when there is no change in the main business activity. If you do not select the business, there will be problems and errors when you prepare your T2 return to be sent electronically or printed in barcode format.
What if I file my tax returns are bit late than the deadline?
If you submit your return late, you are subject to a penalty. The penalty is 5% of the unpaid tax due within the filing deadline, plus 1% of such unpaid tax for each full month of delay in the declaration, up to a maximum of 12 months. A company will be charged an even greater penalty if we have issued a notice to file a return under subsection 150 (2) and if we have established a penalty for failing to report to the company in any of the previous three tax years. The fine is 10% of the unpaid tax at the time the tax return expires, plus 2% of this unpaid tax for each full month of delay in the return, for a maximum period of 20 months.
What if I fail to report all of my income?
The CRA will charge a penalty if a company fails to report an amount equal to or greater than $ 500 that must be included in the calculation of its income on its return in the tax year and any of the previous three tax years.
This penalty does not apply if the company is liable under Section 163 (2) for the same undeclared amount.
The repeated failure to report the income penalty is equal to the lower of:
- 10% of the amount you did not report on your tax return for the tax year
- 50% of the difference between the tax payable (and some overstated refundable tax credits) relating to the amount you have not reported and the amount of the withholding relating to the amount you have not reported
Bottom line
Corporate tax accountants at Web tax Online record corporate income tax for business on time with accuracy. We provide clients with a context on how taxation affects the general business issues our clients may face. Our broad and diverse financial knowledge enables our Vaughan accounting firm to achieve more solid profits for its clients