Corporate Tax Return Cost

Our account department specializes in small and medium-sized businesses. Preparing Corporate Tax Returns is our specialty. We have a system in place that allows us to prepare accurate corporate tax returns at a bit of the fee charged by most accountants.

A corporate tax is a tax that the government imposes on the income of a company. The money collected from corporate taxes is used as a source of income for a country. The earnings of a company are determined by deducting costs from the cost of the product sold (COGS) and operating expense from revenue.

Every corporation pay two taxes, federal and provincial taxes. Provincial taxes varies for each province. Further, corporation income categories in two category, i) active business income and ii) passive or investment income. Canadian controlled corporations (CCPC) pay lower tax on their active business income up to $500,000 currently 12.2% in Ontario as compared to 26.5% paid by the other corporations.

Documents and Information are Necessary for Corporate Tax Returns

Information required for filing a corporate tax return includes incorporation documents, bank statements, invoices, receipts, details about shareholders and their % of shareholding, and details of dividends or salary paid. Other documents will vary from corporation to corporation.

What Charges Can I Deduct on Corporate Tax Returns?

Generally, a corporation can charge any expense incurred to generate business income as long it is reasonable in the circumstances. The business owner must maintain the receipt and other necessary backup to substantiate their expense if they are audited by the Canada Revenue Agency

Here is the most common list of expense:

1. Advertising and promotion expenses
2. Automobile expenses
3. Bank and financial charges
4. Plant, equipment, and machinery (through CCA method as discussed above)
5. Business licenses, memberships, and taxes
6. Consultation/expert advice fee
7. Accounting, bookkeeping and legal fees
8. Insurance expenses 
9. Internet and telephone charges
10. Meals and entertainment expenses
11. Office supplies expenses
12. Postage, shipping, and courier expenses
13. Property taxes & utilities 
14. Repair and maintenance expenses
15. Salaries of employees
16. Travel expenses

How Much An Accountant Charge For A Tax Return Ontario?

Canadian accountants generally charge $500 to $2,000 per tax return, depending on their specialization and clients specific situation. This figure is generally calculated by taking into account how long it takes for them to prepare and file the return.

Is It Worth Paying Someone To Do Your Taxes in Ontario?

It’s important to have an accountant, reconcile your financials to ensure compliance and avoid audits by CRA. Accountants have better knowledge of all the eligible claims specific to your business. In case of any audit an accountant can get you through.

Do you need to file an Information or Annual Return?

Most people confuse an annual return with a tax return. An annual return is basically a renewal of the corporation, which is filed with the registrar of the corporation, such as Corporation Canada or Ontario Business Registry. In this return, a corporation confirms the name of the directors, registered office of the corporation, contact details, etc. The information return is an easy process but very critical; your corporation will be dissolved automatically if you don’t file your corporation’s information return timely.

A tax return is filed with the Canada Revenue Agency, providing details of your revenue and expenses and paying on your net income.

Disclaimer: The above contents are provided for general guidance only, based on information believed to be accurate and complete, but we cannot guarantee its accuracy or completeness. It does not provide legal advice, nor can it or should it be relied upon. Please contact/consult a qualified tax professional specific to your case.