Corporate Tax Return (T2) Preparation in Calgary
Every incorporated business in Alberta must file a T2 corporate return each year, even if it had no activity. Summit Tax & Accounting prepares year-end financial statements and T2 returns for Calgary corporations, keeps you onside with the CRA, and plans how you take money out of the company so you pay less tax overall.
Corporate Tax Deadlines
A T2 corporate return is due six months after the end of your corporation's fiscal year. Tax owing is due earlier — two months after year-end, or three months for a Canadian-controlled private corporation claiming the small business deduction.
| Obligation | Deadline | Example: Dec 31 year-end |
|---|---|---|
| T2 corporate return | 6 months after fiscal year-end | June 30 |
| Tax payment — CCPC claiming the small business deduction | 3 months after year-end | March 31 |
| Tax payment — all other corporations | 2 months after year-end | February 28 |
| T4 and T4A information returns | Last day of February | February 28 |
| T5 slips for dividends paid | Last day of February | February 28 |
| T5018 — construction subcontractors | 6 months after period end | June 30 |
| GST/HST return — annual filer | 3 months after fiscal year-end | March 31 |
Filing a T2 late costs 5% of the unpaid tax plus 1% for each full month, up to 12 months. A second late filing within three years doubles that to 10% plus 2% per month for up to 20 months. Interest runs from the payment due date, not the filing date — so a corporation that files on time but pays late still owes interest.
What's Included
Year-End Financial Statements
Balance sheet, income statement and notes prepared from your bookkeeping records — the foundation every T2 return is built on.
T2 Return Preparation and Filing
Federal and Alberta corporate returns prepared, reviewed and filed electronically, including GIFI schedules, capital cost allowance and the small business deduction.
GST/HST Returns
Annual, quarterly or monthly GST filings reconciled to your books, so the numbers on your returns match your financial statements.
T4, T4A and T5 Slips
Slips for employees, subcontractors and shareholders prepared and filed by the last day of February.
Shareholder Loan Review
We track what you have taken out of the company and make sure the balance is cleared in time to avoid it being taxed as personal income.
Salary vs Dividend Planning
Before year-end, we model the mix of salary and dividends that leaves the most money in your pocket after both corporate and personal tax.
Shareholder Loans and How to Avoid a Surprise Tax Bill
If you take money out of your corporation that is not salary, dividends or repayment of a loan you made to the company, it sits in a shareholder loan account. Under subsection 15(2) of the Income Tax Act, an amount that is not repaid within one year after the end of the corporation's tax year in which it was taken gets added to your personal income for the year you took it. There is also a taxable benefit on interest you did not pay, calculated at the CRA's prescribed rate.
This is one of the most common reasons owner-managed Calgary corporations get reassessed, and by the time the CRA raises it the repayment window has usually closed. We review the shareholder loan balance at every year-end and clear it the least expensive way — repayment, a declared dividend or a bonus — while there is still time.
Salary or Dividends: Which Is Better?
There is no single right answer. Salary creates RRSP contribution room, builds your CPP entitlement and is deductible to the corporation. Dividends avoid CPP contributions but generate no RRSP room and are paid out of profit the corporation has already paid tax on. The right mix depends on how much you need to live on, whether you want CPP, and how much of the small business rate your corporation is using.
| Type of corporate income | Federal | Alberta | Combined |
|---|---|---|---|
| Active business income eligible for the small business deduction (first $500,000) | 9% | 2% | 11% |
| General active business income | 15% | 8% | 23% |
Why Calgary Corporations Choose Us
Planning Before Year-End, Not After
Most corporate tax is decided in the last quarter of your fiscal year. We look at the numbers while you can still act on them.
One Firm for Books, Payroll and T2
When the same people keep your books, run your payroll and file your return, nothing has to be reconciled twice.
Owner-Managed Business Focus
We work with Calgary corporations that have one to twenty people, not multinationals. The advice fits the business you actually run.
A Fixed Fee, Quoted Up Front
You know what your year-end costs before we start, including the statements, the T2 and the slips.
What a Corporate Year-End Costs
A T2 return with year-end financial statements starts at $1,000 plus GST for a corporation with clean books and straightforward activity. Corporations with payroll, GST, multiple shareholders or a year of catch-up bookkeeping start at $1,500 plus GST. You get a fixed quote after we see your records.
How It Works
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Free consultation
We review your corporate structure, fiscal year-end, and what has been filed so far.
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Records handover
You send your bookkeeping file, bank statements and prior-year return. We list anything missing in one go.
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Statements and planning
We prepare your financial statements and show you the salary-and-dividend options before anything is finalized.
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Filing and follow-up
We file the T2 and any slips, tell you what tax to pay and when, and keep the working papers for your records.
Corporate Tax FAQ
Can I do my own corporate tax return?
Legally yes — there is no requirement to use a professional to file a T2. In practice a corporate return requires GIFI-coded financial statements, capital cost allowance schedules and correct treatment of shareholder transactions, and errors in those areas are the ones that trigger reassessments.
Do I need a CPA to file corporate taxes?
No. The CRA does not require a T2 to be prepared or signed by a CPA, and an audit or review engagement is only needed if a bank, investor or shareholder agreement asks for one. What matters is that the statements and schedules behind the return are correct.
When is the corporate tax filing deadline?
Six months after your corporation's fiscal year-end. A December 31 year-end means the T2 is due June 30. Payment comes earlier: three months after year-end for a CCPC claiming the small business deduction, two months for other corporations.
Do I have to file a T2 if my corporation had no income?
Yes. A resident corporation must file a T2 every tax year even with no income and no tax payable. A nil return is still a return, and the late-filing penalty structure applies once tax becomes payable in a later year.
How much does a corporate tax return cost in Calgary?
It depends on the state of your books, whether the corporation has payroll and GST, and how many shareholders are involved. Ask for a quote that covers the financial statements, the T2 and the T-slips together, so you are comparing the same scope between firms.
What happens if I file my T2 late?
The penalty is 5% of the unpaid tax plus 1% per month for up to 12 months, doubling to 10% plus 2% if you also filed late in any of the three previous years. Interest accrues separately from the payment due date.
Talk to Us Before Your Year-End
Call +1 (825) 734 7435 or book a free consultation. The earlier in your fiscal year we look at the numbers, the more we can do about them.