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Corporate (T2) Tax Filing Deadlines
CORPORATE T2 RETURNS
Filing Deadline: Six months after your year-end
Corporate Returns must be filed no later than six months after the end of each tax year. When the corporation’s tax year ends on the last day of a month, file the return by the last day of the sixth month after the year end date. When the year end date r is not the last day of a month, file the return by the same day of the sixth month after the end of the tax year. For example, if a corporation’s year end date is December 31st, then the corporate return must be filed no later than June 30th of the following year. If your year end is June 15th, then your return is due by December 15th. If the T2 filing deadline falls on a Saturday or Sunday, then the return is due by the first business days after the filing deadline.
NOTE: You must file a return within 3 years in order to receive a tax refund.
You will be charged 5% of the tax owing if the corporate return is not filed by the filing deadline. Interest of 1% per month will be charged on any unpaid taxes up to 12 months.
Demand to File
If a corporation is issued a Demand to File by the CRA, and does not comply, and the CRA assesses a failure to file penalty ($250) in any of the three preceding years, interest of 10% will be charged on the unpaid taxes + 2% per month for a maximum of 20 months. You need to action a Demand to File immediately to avoid heavy penalties and interest.
Corporations generally have to pay their taxes in installments, with the final payment for the balance of tax due to be paid within two to three months after their year end date. Generally speaking, installments are required if a corporation has tax owing of more than $3000. Installments are usually due on a monthly or quarterly (March 31st, June 30th, September 30th & December 31st) basis.
The CRA charges interest on any late or insufficient installment payments. The interest rate is determined quarterly in accordance with the prescribed interest rate compounded daily. Currently, the rate is 5%.