Corporate and personal tax
T2 Corporate Tax Returns for Ontario Corporations
Last reviewed: August 2026
The return is the easy part. Anyone with software can file a T2. The value is in the eleven months before it: whether the equipment was bought in the right month, whether the HST was collected on the right services, and whether the money coming out is coming out the cheapest way.
Corporate tax (T2)
- The year-end close, adjusting entries and working papers, from books we have either kept or reviewed
- The T2 return with the schedules that actually apply, including GIFI, CCA, and the small business deduction calculation
- Instalment planning so the payments match what the year is actually doing rather than last year
- CRA correspondence, reviews and information requests, handled by us once authorised
- Shareholder loan review before the balance becomes an income inclusion
- A pre-year-end conversation, which is the only point at which most of this can still be changed
Personal tax (T1)
- The owner's return, the spouse's, and family members' where relevant
- Dividend and salary reporting matched to what was actually declared on the corporate side
- Rental, investment and self-employment schedules where they apply
- Instalment forecasting for owners drawing dividends, so the April number is not a surprise
Why one firm matters. The dividend on the T2 and the dividend on the T1 have to agree. When two different firms prepare them, they frequently do not, and the reassessment lands on the owner personally.
Key corporate tax dates
Enter your own year end in the deadline checker to get these as actual dates.
| What | When | What happens if you miss it |
|---|---|---|
| T2 return filed | 6 months after year end | 5% of unpaid tax plus 1% a month, up to 12 months. Double for a repeat offence after a demand to file. |
| Corporate balance paid | 3 months after year end for a CCPC claiming the small business deduction, otherwise 2 | Interest compounds daily from this date, even though the return is not due yet. |
| Instalments | Monthly, or quarterly for an eligible CCPC | Interest, and in some cases an additional instalment penalty. |
| T4 and T5 slips | Last day of February following the calendar year | Penalties scale with the number of slips, starting at $100. |
| Owner T1 | April 30, or June 15 if self-employed | Balance is still due April 30 either way. |
Frequently asked questions
When is my T2 corporate return due?
Six months after your fiscal year end. The balance of tax owing is due earlier: three months after year end for a CCPC claiming the small business deduction, two months otherwise. Interest runs from the payment date even though the return is not due yet, which is the part that surprises people.
What is the penalty for filing a T2 late?
The basic late-filing penalty is 5% of the unpaid tax at the due date, plus 1% of that unpaid tax for each complete month the return is late, to a maximum of 12 months. If CRA issued a demand to file and there was a late-filing penalty in any of the three prior tax years, the penalty doubles to 10% plus 2% a month for up to 20 months.
Do I still have to file if the corporation had no activity?
Yes. A corporation must file a T2 for every tax year even with no income and no activity. An unfiled return can block CRA business account access and financing. A nil return is inexpensive to prepare and expensive to skip.
Should I pay myself salary or dividends?
It depends on your income level, whether you want RRSP room and CPP contributions, and whether the corporation needs to retain earnings. The answer changed in 2026: Ontario's corporate rate cut is paired with a reduction to the small business dividend tax credit from January 2027, which makes dividends slightly less efficient than they were. Anyone still running a mix set before 2026 should have it rechecked.
Can you handle a CRA review or reassessment?
Yes, once we have authorisation on your account. That covers correspondence, information requests, reviews and objections. Having the authorisation in place before a letter arrives saves a week at exactly the moment you do not have one.
How far back can CRA reassess my corporation?
The normal reassessment period for a CCPC is three years from the date of the original notice of assessment. It is open indefinitely where there has been misrepresentation attributable to neglect, carelessness, wilful default, or fraud. That is why keeping records for six years matters.
Contractor-specific tax questions → · Clinic-specific HST questions →
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