Return Preparation

For all Canadian Businesses, Income Tax Returns must be prepared and filed by all legal entities both corporate as well as non-corporate. We at Trust Accounting and Financial Services specialize in the preparation of Tax Returns and Financial Statements and having them filed with the authorities on time to avoid penalties and interests applicable for delays or omissions.

There are basically two types of Income Tax Returns which need to be prepared and filed under the Canadian Tax Laws:

1. T1 General Income Tax and Benefit Returns: for individuals and sole proprietors of businesses.
   
   
   1. There is tax payable on the income earned during the year.
   2. The CRA has sent a request for a return to be filed.
   3. The individual and his/her spouse or common-law partner have elected to split the pension income.
   4. Capital Property (such as real estate or shares) has been disposed off during the year or there has been the realization some form of a taxable capital gain.
   5. Old Age Security or Employment Insurance benefits have been or have to be repaid.
   6. The amounts withdrawn from any Registered Retirement Savings Plan (RRSP) under the Home Buyer's Plan or the Lifelong Learning Plan have not yet been repaid.
   7. Where the income is more than $ 3500 and contribution to the Canadian Pension Plan is a requirement.
Even where none of these conditions are applicable, an individual or a sole-proprietor may still need to file a return for the following financial requirements:


1. Claiming a refund
2. Applying for the GST/HST credit
3. Beginning or continuing to receive Canada Child Tax Benefit Payments
4. Capital Loss incurred in the current year which needs to be set-off in the next years.
5. Report income for which contributions to any Registered Retirement Savings Plan (RRSP) is being made.
6. Carry forward any unused investment tax credit.

Recipients of the Guaranteed Income Supplement or Allowance Benefits under the Old Age Security Program also need to file their returns in order to continue receiving the benefits.


2. T2 Corporate Tax Returns and Financial Statements for corporations: With the exception of registered charities, all resident corporations of Canada need to file their tax returns every year irrespective of whether there is tax payable or not. Even the following forms of corporations also have to submit their tax paperwork on time :
   
1. Non-Profit Organizations
2. Tax-Exempt Corporations
3. Inactive Corporations
4. Non-Resident Corporations registered in Canada.