T2 Corporate Income Tax Returns

T2 Corporate Income Tax Returns

  • Provision for income taxes: The provision for income taxes on an income statement is the amount of income taxes a company estimates it will pay in a given year. Typically, this is represented quarterly with each earnings report on the company’s income statement.
  • Interest and Penalties: Cancel or waive penalties or interest. The CRA administers legislation, commonly called the taxpayer relief provisions, that gives the CRA discretion to cancel or waive penalties or interest when taxpayers are unable to meet their tax obligations due to circumstances beyond their control.
  • Income/loss for tax purposes: Use Schedule 1 to reconcile the net income (loss) reported on your financial statements and the net income (loss) required for tax purposes.
  • Charitable donations: Charitable donations are deducted (afterward) from net income for tax purposes to arrive at taxable income.
  • All crown charges, royalties, rentals, ect…: A royalty is a payment made by one party, the licensee or franchisee to another that owns a particular asset, the licensor or franchisor for the right to ongoing use of that asset.
  • Sales tax assessments: Goods and Services Tax (GST) is an indirect tax reform which aims to remove tax barriers between states and create a single market. For that to happen the constitution first needs to be amended to remove different layers of governments’ exclusive powers to levy taxes