Corporation Tax Returns

Arbitrary/Notional Assessment

Failure to file Tax return will in result of an arbitrary assessment from Canada Revenue Agency. In almost cases, the assessment will in result of  higher income and tax payable  than what it should be.  Arbitrary assessments occur for all types of tax returns whether it be personal, corporate, GST/HST or payroll.

On the top of tax payable on arbitrary assessment, there is penalty for late filing and interest on tax payable due. If tax payable fail to pay the tax due, a collections officer will be assigned to your account.

In order to rectify the arbitrary assessment, tax return(s) need(s) to be filed. Once Canada Revenue Agency accepts your return, the arbitrary assessment and the balances will be erased and replaced with your actual tax .The penalties and interest associated with the arbitrary returns will be re-calculated based on your filing. This is only an option for a certain period of time. If you do not file your tax returns within the time frames discussed below, the arbitrary balances stand and you actually owe the money and cannot do anything about it (exceptions made for very specific circumstances only).

We offer complete income tax services for businesses, including regular tax return preparation.

For a corporation, the time frame to replace an arbitrary tax return is as long as the return has not gone statute barred. When the date of the notice of assessment reaches three years, that tax return is considered statute barred and cannot be examined again by CRA unless there is a misrepresentation in the return such as fraud. At the present time, they have been allowing personal tax returns to be filed back for ten years.

This situation often results in significant taxes owing that cause taxpayers to resort to bankruptcy. For example, if a 2005 corporation tax return was arbitrarily assessed in 2007, that arbitrary assessment is now beyond three years and the balance cannot be replaced. So if the company really owed no money but CRA believed it owed $100,000- now it really does owe the $100,000. This is why as soon as you ever receive any arbitrarily assessed returns you should be contacting our office immediately to get filed and ensure your actual tax balance is the one that you paid.

Corporation Tax Return

The tax return for corporation names T2 corporation return. It will be due 12 months after the incorporation date. Or any 12 months time afterward. Beside the corporation income tax return, we also provide:

  •  Notice to Reader Financial Statements
  • Corporate tax return filings (T2)
  • GST/HST filings
  • WSIB/EHT filings
  • Tax planning
  • CRA representation
  • Not-for-profit filings

Non Resident Tax Return and Trust

Non resident individual or corporation need to report income earned inside the country, typical income earned by non resident individual are rental income/ income from disposal of capital asset , as reality estate or share of listed company.  We provide the following service to non resident who report rental income and capital gain.

  • T1 tax return under section 216 and 217
  • Application of clear certificate before disposal of asset
  • Non resident tax withholds and remittance as application Nr6 and monthly remittance
  • Non resident tax slips issuing as Nr4

There are time flame for each of document/slip issuing. For details, please visit our office and have our consultant to explain to you.

Trust and Estate Planning

We offer various kind of Tax planning and service to clients, including:

  • Trust set up. we can help to set up off / on shore family trust, personal trust, or Testamentary trust
  • Ownership roll over
  • Tax planning to save capital gain as lifetime capital gain exemption
  • Filing of T3 information tax return allocation of income to beneficiary,
  • Issuing of T3 tax slips, schedule 1 , schedule 8 and 9 preparation.    

Tax Audit and Tax Appeal to Tax Court of Canada

Canada Revenue Agency perform an audit to ensure the integrity of tax return. Tax audit include:

  • GST/HST Audit
  • Payroll Audit
  • Personal Tax Audit
  • Corporation Tax Audit
  • T3 trust return Audit.

The normal routine to initiate an audit from Canada Revenue Agency is to send a letter/questionaries and request taxpayer to respond. Taxpayer should know his /her right to respond to the letter as the reply to it is time sensitive. Taxpayer ‘s right including the knowledge of statutory bury period , legal time to keep documents and right to retain tax representative.    As each case is unique ,please book an appointment with our consultant before you talk to tax auditor officer.

Tax court of Canada

If conflict can not be solved between tax payer and appeal officer of Canada revenue agency, tax payer has right to bring the appeal to Tax Court of Canada. Under certain circumstance, tax payer can represent himself/herself at the hearing of tax court. In most case, conflicts could be resolve even before the trial date of the court with appeal officer of Canada revenue agency. Please book an appointment and let us analyst your case.