How To Ensure Rental Income Within Your Corporation is Active Business Income
How To Ensure Rental Income Within Your Corporation is Active Business Income May 5, 2023 Tax Question: How do you ensure your rental income within
Home » News » Canadian Tax FAQs » When are Corporate Taxes Due To The CRA?
Tax Question:
When are corporate taxes due to be paid to Canada Revenue Agency (CRA)?
Facts:
The corporate tax due date is different than the corporate taxes filing deadline. The T2 corporate tax return deadline to file is six months from the end of the fiscal year. The corporate tax due deadline is generally two months after the end of the fiscal year. However, the deadline is extended to 3 months if certain conditions are met:
If corporate taxes are not paid by the corporate taxes due deadline, then CRA will charge you interest until the full balance is paid. As the corporate tax filing deadline is six months after fiscal year-end, you may have to estimate the corporate taxes beforehand and make a tax payment if you wish to avoid payment of interest. Furthermore, if the corporation had taxable income in the previous tax year, it may be required to pay tax instalments for the current tax year. Your accountant can estimate and prepare an instalment schedule for the current year once the previous tax return has been prepared. The tax instalments are based on taxable income from the previous year. You can make lower tax instalments if you end up with lower taxable income for the current year. Please note that if the required instalments are not paid on time, then CRA will charge you interest. If you have overpaid your corporate taxes, then CRA will give you an option to refund the difference or you can transfer the balance to the next fiscal year. We generally prefer to file the corporate tax return for our clients within two to three months of the fiscal year-end. We encourage our clients to keep their books up to date. We also help with corporate tax planning.
If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.
Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.
How To Ensure Rental Income Within Your Corporation is Active Business Income May 5, 2023 Tax Question: How do you ensure your rental income within
Canadian Sales Tax Rates for 2023 January 30, 2023 Question: What are the sales tax rates across Canada in 2023? Facts: The table below outlines
How To File a GST/HST Return January 10, 2023 Question: How do you file a goods and services tax (GST) / harmonized sales tax (HST)
Shareholder Loans and Personal Expenses December 5, 2022 Question: What are Shareholder Loans and how are personal expenses recorded? Facts: The Shareholder Loans category may