Corporate tax preparation starts with year-end records. A corporation’s T2 return depends on clean bookkeeping, financial statements, shareholder information, and support for claims made in the return.
Who Generally Files A T2
CRA guidance states that resident corporations generally have to file a T2 return for every tax year, including non-profit organizations, tax-exempt corporations, and inactive corporations, unless a listed exception applies.
Year-End Documents To Prepare
Gather:
- profit and loss statement
- balance sheet
- general ledger or detailed transaction listing
- bank and credit card statements
- loan and lease statements
- asset purchase and sale documents
- payroll summaries, if applicable
- GST/HST filings and working papers
- shareholder loan details
- prior-year T2 return and Notice of Assessment
- incorporation documents and any changes to shareholders or directors
Corporate Deadlines
Corporations generally file their T2 return within six months after the end of the tax year. Corporate balance-due timing is generally two or three months after the tax year end, depending on the corporation’s circumstances.
Confirm the exact due dates for the corporation before relying on a general rule.
Bookkeeping Review Before T2 Preparation
Before preparing the T2, review:
- unreconciled bank or credit card accounts
- negative balances that need explanation
- shareholder loan entries
- personal expenses paid by the corporation
- missing invoices or receipts
- payroll source deduction records
- GST/HST collected, paid, and remitted
Fixing these issues before tax preparation can reduce delays and help avoid unclear support if CRA asks questions later.
Record Retention
CRA generally requires required records and supporting documents to be kept for six years from the end of the last tax year they relate to. Some corporate events, such as dissolution, objections, appeals, or late filing, can change retention requirements.
Safe Intake Reminder
Use the general contact form only to describe what help is needed. Do not upload or paste SINs, business banking details, CRA credentials, IDs, or corporate records into the general form.