When are my corporate taxes due?
If your company is a Canadian Controlled Private Corporation (“CCPC”), it must pay no later than 3-months after its fiscal year end. Non-CCPCs must pay their taxes within 2-months after their tax year end.
Both CCPCs and non-CCPCs must submit their tax filing to the CRA no later than 6-months after their tax year end.
What are my other tax deadlines?
Here are the most common tax deadlines:
I hired an accountant to prepare my taxes, and they still got it wrong; do I have to pay the additional taxes?
Yes. In Canada the taxpayer is responsible for the information contained in their tax returns. Not all accountants are tax experts, this includes CPAs. Your best defense is to hire a competent tax professional to prepare your returns, and you should review your returns with you in detail before you sign them and they are filed.
How do I know if something is deductible?
Generally, for an expense to be deductible it must have been incurred for the purpose of earning business income. Business income doesn’t actually need to be earned, but the expense had to have been incurred for the purpose of earning business income. Certain expenditures that have an enduring nature (last more than one year) may be considered to be capital items that need to be written off over a number of years.
Generally speaking, the CRA will allow taxpayers to expense capital items that are below $500.
Learn more about business expenses.
What types of records do I have to keep in case of an audit?
Businesses need to keep a wide range of records ready for a potential audit, including business and GST/HST records. You can find a summary of the records you need on the Government of Canada’s website.
Are digital records OK in the case of a CRA audit?
Digital records are perfectly acceptable in the case of a CRA audit, provided they meet the required criteria. Please note, if you meet these criteria, you do not have to keep the original paper documents.
Can I deduct my home office expenses?
Employees: If you have an office in your home, you may be able to deduct expenses if they are related to your employment and you have not been reimbursed for the expenses. You do, however, have to meet certain conditions.
Business Owners: Generally speaking, if you have a regular place of work that is not your home office, you will not be able to deduct home office expenses. However, there are certain exceptions, such as if you regularly meet clients at your home or if your home is your principal (>50%) place of business
Can I deduct my personal vehicle in my business?
You may be able to deduct certain expenses if your vehicle is used to earn business income. The amount you can deduct depends on the type of vehicle you own, and you should keep a logbook of your business travel for the year. Find out more about motor vehicle expenses here. Note that travel between your home and your office is generally not eligible for an auto deduction.
Is there tax on the sale of my principal residence?
The gain on the sale of your principal residence should not be taxable; however, you now have to report the disposition of your primary residence. This is a new change in 2016 that many people may not be aware of.
What are the tax benefits of charitable donations?
Charitable donations can result in a tax credit of over 50 per cent! That means that if you donate $10,000 to charity, you may get over $5,000 back in taxes (personal and corporate). Read more about charitable donations and taxes.