Corporate year-end planning for incorporated businesses

A corporation's year-end — not the calendar year — drives its tax calendar. Corporate T2 returns are generally due within six months of year-end, but the balance of corporate tax payable is due much earlier, typically two or three months after year-end depending on the corporation. Planning for both dates is essential.

Good year-end hygiene starts months earlier: reconciling accounts, capturing all receivables and payables, documenting shareholder advances, and confirming that salary versus dividend decisions have been considered with your accountant before the books close.

Owner-managers should also keep the paperwork behind major decisions — resolutions, loan agreements, leases and contracts — organized throughout the year. When CRA reviews a filing, the quality of your documentation is often what resolves it quickly.

Ford & Associates works with incorporated businesses across Ontario on T2 preparation, year-end compliance and planning, and ongoing advisory so decisions like compensation, equipment purchases and capital investments are made with the tax picture in view.