3 Things to NOT Miss When Filing Your Corporate Tax Return (T2) in Canada – 2024 Edition

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    21 Feb 2024

    3 Things to NOT Miss When Filing Your Corporate Tax Return (T2) in Canada – 2024 Edition

    The new year's sparkle has probably faded, and the looming shadow of tax season is making itself known.  By February end, the businesses have to file their T4s (wages) and T5s (dividends), and the general deadline for filing corporate income tax returns (T2) is also close. Beyond forms and deadlines, it is also the time for tax planning and the 2024 budget.  At this time of the year, consulting a CPA in Surrey Canada for tax planning, filling, and professional opinion becomes non-negotiable.  Apart from heading to a CPA, there are additional things you can do to make corporate tax filing a stress-free event. Read further to find out the 3 things every business owner in Canada must not miss when filling out their tax returns.
    • All Important Deadlines For Businesses

    Don't miss the filing deadline!  Typically, corporations must file their return 4 months after the fiscal year-end. Remember, late filing penalties accrue quickly, so prioritize timely submission. One must also avoid late-filing penalties, as these can accrue daily at 5% per month, up to a maximum of 15% of the outstanding balance. So, the sooner the filling is done, the less likely it is to get a fine. Besides, CRA can process your return and assess any refund quickly. This becomes crucial for businesses dependent on tax refunds to manage cash flow. Completing it early will relieve you from the pressure of an impending deadline and the risk of potential penalties.  
    Dates Event
    February 28, 2024 Corporations must submit their GST/HST returns for the preceding quarter (October-December 2023) by the deadline.
    February 29, 2024 Businesses must meet the deadline for filing T4s (wages) and T5s (dividends).
    April 30, 2024 Corporations are required to submit their payroll source deductions returns for the preceding year (2023) by the deadline.
    June 30, 2024 The general deadline for submitting corporate income tax returns (T2) applies to businesses with a year-end of December 31.*
      *The deadline can vary depending on your fiscal year-end, so remember to check your specific date. Note: Look for accounting services near me to find out if more deadlines are approaching that apply to your business. 
    • Deductions and Credits

      Picture this: You're investing your passion and dedication into growing your business. Every penny matters, and the approaching tax season can sometimes cast a bit of gloom. But what if there were legal and awesome loopholes specifically designed to reward your hard work and innovation?  That's where deductions and credits come in. Think of them as secret cash-back programs for responsible business owners.  Do you invest in R&D? Boom! Grab those SR&ED (Scientific Research & Experimental Development) credits to cover the expenses of those brainstorming sessions that sparked your next groundbreaking product. Are you making sure your equipment stays in top-notch shape? Great! Leverage CCA (Capital Cost Allowance) to systematically depreciate its cost and reduce your taxable income over time. Remember that time you took the plunge with eco-friendly packaging? There might be a sweet tax credit of ITC (Investment Tax Credit) waiting for you.  Running a lean, mean, Canadian machine? Embrace the Small Business Deduction (SBD) – it's here to support you! Trim down your taxable income by as much as $500,000, providing a financial uplift to your small business and alleviating the tax load. Keep in mind that the goal is not to deceive the system. It's about playing the game smart. Utilize the tools available to your advantage, understand the rules, and watch those tax bills shrink. Talk to a Chartered Professional Accountant near you to ace this game!
    • Accurate Financial Records

    Accuracy vs. Audit Anxiety – It is that time of the year when our anxiety about audits can take over our routine. So, Don't let incomplete records turn your tax season into a horror movie!  Your financial records are the bedrock of your return, and here's how you build a castle of financial accuracy:
    • Double-check everything: From invoices to bank statements, scrutinize every number with eagle eyes. Typos and miscalculations can be costly, so cross-check your entries and reconcile accounts regularly.
    • Categorize like a Champion: Organize your records by transaction type - income, expenses, deductions, and credits. Think of spreadsheets, folders, or even color-coding. Clarity is key when the CRA comes knocking.
    • Backup & Preserve: Embrace digital copies! Scan crucial documents like receipts and invoices, create secure backups, and ditch the paper-trail panic. Cloud storage is your friend for disaster-proof peace of mind.
    • Follow the Paper Trail: Keep every relevant document, be it invoices for equipment purchases (CCA), logs for R&D projects (SR&ED), or receipts for sustainable upgrades (ITCs). Don't leave the CRA guessing!
    • Stay in the System: Integrate your accounting software with tax filing platforms. Automatic data transfer saves time and minimizes errors. Think of it as building a financial bridge to smooth sailing during tax season.
    Having everything organized and readily accessible not only saves you stress but also ensures you claim every rightful deduction and credit. Roping in professionals for Corporate Planning & Compliance Canada will help you be sure about the documentation requirements, 24X7, 365 days. 

    Think Professionally For Corporate Tax Filing Canada in 2024

    Keep an eye out for recent tax changes! The Canadian government updates tax rules periodically, so familiarize yourself with any new deductions, credits, or filing requirements that may apply to your 2024 return. Or, you can focus on your core business, and leave the paperwork to experts at CJCPA. We have 30+ years of combined experience in offering Business Planning Solution Canada.    Filling hassle-free T2 tax returns while saving the maximum amount on taxes for our clients is something we are proud of. Get your free 30-minute consultation with an expert CPA and find it out yourself!
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