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Bookkeeping is the day-to-day recording and organizing of financial transactions, while accounting uses those records to interpret results, prepare reports, and support compliance and decision-making. Bookkeeping and accounting serve different purposes at different business stages. Seven key differences: Frequency — daily capture vs periodic review Inputs vs outputs — transactions to statements Journal entries vs […]

CRA charges a late-filing penalty of 5% of the unpaid tax due on the filing deadline, plus 1% for each complete month the T2 return is late, up to a maximum of 12 months. (Penalties for failing to file a T2 return) The penalty doubles to 10% plus 2% per month (maximum 20 months) when

Corporate tax filing in Canada is the process of preparing and submitting a T2 Corporation Income Tax Return (T2 return) to the Canada Revenue Agency (CRA) for each corporate tax year (fiscal period). (Corporation income tax return) Here are the 6 rules that define what corporate tax filing means in practice: You file a T2

The T2 Corporation Income Tax Return must be filed within six months after the end of each fiscal period. If your fiscal year-end falls on the last day of a month, file by the last day of the sixth month. Otherwise, file by the same day of the sixth month. Filing your return and paying

Canadian corporations must file their T2 Corporation Income Tax Return within 6 months after their tax year-end, pay their balance owing within 2 months (or 3 months for eligible CCPCs), and remit monthly or quarterly instalments throughout the year. Which “Deadline” Do You Mean? Filing vs Paying vs Instalments Corporate tax compliance involves three separate

Canadian taxpayers can pay tax owing to the Canada Revenue Agency online through four authorized methods: online banking with your bank or credit union, the CRA’s My Payment debit service, pre-authorized debit (PAD), and CRA-approved third-party providers. Line 48500 on your T1 income tax return shows your balance owing after the CRA applies credits, instalments,

A small business in Canada has 1–99 paid employees. Medium-sized businesses have 100–499 paid employees, and large businesses have 500+ paid employees. This employee-based definition is set out in Innovation, Science and Economic Development Canada’s Key Small Business Statistics report (ISED KSBS PDF). That answers the main question, but you will also see “small business”

Square has reported Canadian merchant transaction data to the Canada Revenue Agency (CRA) under a 2017 Federal Court order. The CRA retains authority to request merchant information from payment processors at any time. CRA can access Square data through third-party information requests, Federal Court orders, or under Canada’s new digital platform reporting rules that took

Independent contractors in Canada report self-employment income on a T1 personal return using Form T2125 (Statement of Business or Professional Activities). You enter gross revenue, subtract eligible business expenses, and the result becomes your net self-employment income (or loss) for the year. A separate question is GST/HST: if you stop being a “small supplier,” you

A Canadian small business pays corporate income tax at a combined rate: the net federal small business rate (9%) plus the provincial/territorial small business rate, on eligible active business income up to the business limit. The combined small business corporate tax rate varies by province, which is why “9%” is not the full answer. For