Book Consultation

Accounting, bookkeeping and tax professionals serving individuals and owner-managed businesses across Langley and the Fraser Valley.

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Email contact@pactservices.ca
Phone 250-819-5344
Office 8661 201 Street, 2nd Floor, Langley, BC V2Y 0G9
Corporate Tax Returns

Corporate Tax Returns (T2)

A corporate return is only as good as the books behind it. We start with the trial balance, post the year-end adjusting entries for accruals, prepaid expenses, depreciation, inventory and the shareholder loan account, and then prepare the T2 from figures that actually tie out. Every incorporated company in Canada must file a T2 each year, including companies that were dormant and companies that lost money.

We file the federal T2 with the British Columbia schedules, claim the small business deduction where the company qualifies, and track the balances that matter for future years — non-capital losses, the capital dividend account and the general rate income pool.

Year-End Adjustments

Accruals, prepaids, capital cost allowance, inventory and loan reconciliation, so the statements and the return agree with each other.

Owner Compensation

A salary and dividend mix modelled against your personal bracket, RRSP room and CPP position — decided before year-end, not after.

Shareholder Loans

Review of the loan account and a plan to clear a debit balance before the anniversary that would make it taxable income to you personally.

Instalments & Balances

Corporate instalment schedules calculated in advance, with the payment deadline tracked separately from the filing deadline.

Deadlines That Catch People Out

The T2 is due six months after your fiscal year-end, but the tax itself is due earlier — three months after year-end for a Canadian-controlled private corporation claiming the small business deduction, two months for everyone else. Filing on time and paying late still costs interest, so we calculate the expected balance well before the payment date and tell you what to send.

Dormant and loss-making companies still have to file. A nil return costs little to prepare and keeps the company in good standing; skipping it invites demand letters and eventual dissolution of the company by the registry.

Corporate Tax Returns at PACT Professional Services
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Corporate Tax Returns: your questions answered

Yes. A T2 is required for every year the corporation exists, whether or not it earned anything. A nil return is inexpensive and keeps the company compliant with both CRA and the BC registry.

It depends on your income level, whether you want RRSP contribution room, your view on CPP, and whether the company needs to retain earnings. We model both for your actual numbers each year rather than applying a rule of thumb.

Three to four weeks from the point we have complete records. If we already do your bookkeeping it is faster, because the books are reconciled as we go and there is nothing to reconstruct.

We quote the clean-up separately once we have seen the state of the records, then prepare the year-end from the corrected books. This is common and it is not a problem — it just needs to be scoped honestly.

Yes. Notice to reader statements, with comparative figures for the prior year, are prepared alongside the return and are what most banks and lenders ask to see.

MORE FROM PACT

Other Services

Personal Tax Returns

T1 returns for employees, families, seniors, students, investors and the self-employed.

Bookkeeping

Monthly or quarterly bookkeeping, reconciliations and statements you can actually read.

Payroll Services

Pay runs, source deductions, T4 and T5 slips, records of employment and WorkSafeBC reporting.

GST/PST Filing

Registration, input tax credit review and on-time filing of GST/HST and BC PST returns.

CRA Audit Support

Representation for reviews and audits, back-filing of late returns and payment arrangements.

Business Registration

Sole proprietorship registration, incorporation, CRA program accounts and first-year compliance set-up.

Financial Statements

Notice to reader statements, cash-flow reporting and the numbers your bank or lender asks for.

Trusted accounting & tax advisors for your business

Book a no-obligation consultation and we will review your books, your filing history
and the deadlines ahead of you.

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