Our tax professionals work closely with you and discuss all of your filing obligations under the Income Tax Act and the Quebec Taxation Act.
Filing corporate tax returns to tax authorities in an efficient manner is important for any corporation - whether the corporation of an owner operator or a large Canadian corporation.
What we do includes:
- the preparation of tax returns T2 and CO-17, tax election forms, requests for tax interpretations, documents for a voluntary disclosure and other correspondence for federal and provincial tax authorities
- take full advantage of tax deferral or accelerate the reimbursement of expenses
- effectively manage a tax audit and the negotiations with the authorities
All corporations, including non-profit, tax-exempt corporations and inactive corporations must file a T2 return for each tax year, even if they have no tax to pay, however, tax-exempt Crown corporations and registered charities do not have the obligation to file a tax return.
Corporations that have a permanent establishment in Alberta or Quebec should also file a separate provincial tax return (for the purposes of Québec tax, CO-17 return).
A non-resident corporation must file a T2 return if it is in one of the following situations during a year:
- it carried on a business in Canada
- it disposed of taxable Canadian properties, with the exception of certain excluded dispositions
The corporation must file a return even if it requires an exemption from Canadian tax under a tax treaty, on all profits and gains.
A non-resident corporation must also file a T2 in some cases, including:
- when the Canada Revenue Agency (CRA) approved the Form NR6, produced by the corporation to pay Part I tax on the net income or timber royalties on real property rental income under subsection 216 (1) ITA
- when the CRA approves the T1288 form, filed by the corporation for the current year, to pay the Part I tax on the net income of acting services under subsection 216.1 (1) ITA
Even if the above situations do not apply to a non-resident corporation could file a return in the following cases:
- it claims a refund
- it elects to pay Part I tax on the net amount of timber royalty income or rental income from real property under subsection 216(1) ITA for the current year
- it elects to pay Part I tax on the net income of acting services under subsection 216.1(1) ITA for the current year
Dispositions of taxable Canadian property (certificates of compliance)
A non-resident corporation that has a taxable Canadian property must notify the CRA and may need to obtain a certificate under section 116 ITA.
A non-resident corporation that has a taxable capital gain or disposed of taxable Canadian properties, including a corporation that may have received a certificate from the CRA must file a return, unless the disposed property meets all the following conditions:
- no tax under Part I is payable for the taxation year
- corporation is not required to pay any amount under the Tax Act for a taxation year (unless it is a sum for which the CRA holds, adequate security under section 116 or 220 ITA)
- each taxable Canadian property the corporation has disposed of during the taxation year is, as appropriate,
- excluded property under section 116 ITA
- property for which a certificate was issued under section 116 ITA