What Are T2 Tax Forms and Do You Need to File Them
If you are trying to decipher the Canada Tax laws as a business owner then you may be quite overwhelmed with the number of forms that could possibly be applicable to your business like the T2 tax form, for example. You may also be of the mind that you are pretty good with figures and had originally decided that you would do your own taxes for your business. Now however seeing the number of additional forms that you may have to deal with is changing your mind. This gives you just some idea why most businesses choose a good Toronto Accountant to take care of the financial aspects of their business. Knowing which forms to use for the tax obligations and how to fill them out properly is just one of the many areas of knowledge that these accounting experts possess and that you need for your business.
The T2 is a form that you must complete if you have to file Corporate income tax for your company. It is comprised of 8 pages and each one must be filled out properly. There are some types of business that are exempt from this form, but you would need to ask your tax advisor if you come into one of these categories.
There is also a shorter version of this tax form called the T2 Short Return which is comprised of 2 pages and 3 schedules.
The first thing you will need to determine is what is the end of your fiscal year? Your business tax return doesn’t necessarily apply to the April 30th deadline like many of the other tax filings do. Your taxes will have to be completed no later than 6 months following your year end. You can check with the CRA regarding filing deadlines and how weekends and holidays equate into this for getting your return in on time.
This is a very important form when it comes to doing your taxes properly for your business. Ideally having your tax accountant prepare this form along with the rest of your business tax is going to take the apprehension and confusion away from you, plus you will know that it has been done right and you are less likely to be challenged concerning it in regards to the CRA. That doesn’t mean they won’t choose to do a random audit, as this can happen to anyone. If it does though, at least all of your documentation will be in proper order according to the information that you supplied your tax accountant.