Filing a corporate tax return in Canada requires submitting a T2 return along with several supporting schedules. These schedules provide the Canada Revenue Agency (CRA) with details about your corporation’s income, financial statements, tax calculations, and shareholder information.
CloudTax is designed as a do-it-yourself corporate tax filing platform, allowing business owners to prepare and file their T2 returns online.
The platform supports the most commonly required T2 schedules for Canadian-controlled private corporations (CCPCs), which represent the majority of owner-managed businesses in Canada.
When a Standard T2 Filing Is Required
A corporation must file a standard T2 corporate tax return when there is financial activity during the tax year.
Financial activity may include:
Revenue from business operations
Business expenses
Net income or losses
Asset purchases or disposals
Financial statements being reported
Once financial information appears in the return, the filing is no longer considered a nil return. In these cases, the corporation must complete the required T2 forms and schedules.
With CloudTax, business owners can complete this process themselves using the do-it-yourself T2 filing platform.
Core T2 Forms Supported
Every corporate tax return includes several core forms required by the CRA. These forms report the corporation’s financial statements and calculate tax payable.
CloudTax supports the following core forms:
These forms form the foundation of most corporate tax filings in Canada.
T2 (200) – Corporation Income Tax Return
The main corporate tax return submitted to the CRA.Schedule 1 – Net Income (Loss) for Income Tax Purposes
Adjusts accounting income to determine taxable income.Schedule 5 – Tax Calculation Supplementary
Calculates federal tax payable and applicable credits.Schedule 100 – Balance Sheet Information
Reports the corporation’s balance sheet details.Schedule 101 – Opening Balance Sheet
Required for corporations filing their first T2 return.Schedule 125 – Income Statement Information
Reports the corporation’s income statement including revenue and expenses.
Common CCPC Schedules Supported
Many owner-managed corporations require additional schedules depending on their financial activities.
CloudTax supports several commonly used schedules for Canadian-controlled private corporations (CCPCs). These schedules allow corporations to properly report dividends, investment income, capital assets, and shareholder transactions.
Schedule 3 – Dividends Received and Paid
Reports dividends paid to shareholders and calculates applicable taxes.Schedule 4 – Corporation Loss Continuity and Application
Tracks loss carryforwards and how they are applied.Schedule 6 – Capital Property Dispositions
Reports the sale of capital assets such as equipment or investments.Schedule 7 – Aggregate Investment Income and Small Business Deduction
Calculates investment income and determines eligibility for the small business deduction.Schedule 8 – Capital Cost Allowance (CCA)
Reports depreciation claims on business assets.Schedule 9 – Related and Associated Corporations
Identifies corporations that are related or associated for tax purposes.Schedule 11 – Transactions with Shareholders, Officers, or Employees
Reports loans, benefits, and other transactions involving shareholders or corporate officers.
Additional Reporting Schedules
Depending on the corporation’s structure and activities, additional schedules may be required. These schedules help ensure your return includes the necessary disclosures to meet CRA reporting requirements.
CloudTax includes support for:
Schedule 19 – Non-Resident Shareholder Information
Reports information about shareholders who are not Canadian residents.Schedule 24 – First-Time Filer After Incorporation, Amalgamation, or Wind-Up
Used when filing a corporate return for the first time.Schedule 50 – Shareholder Information
Lists shareholders and ownership percentages.Schedule 88 – Internet Business Activities
Reports online business activities for CRA reporting requirements.Schedule 141 – Notes Checklist
Provides additional disclosures related to financial statements.
Built for Typical Owner-Managed Corporations
The CloudTax platform is designed for simple to moderately complex CCPCs, which represent the majority of small businesses in Canada.
It works well for corporations that report:
Dividends
Capital cost allowance (CCA)
Loss carryforwards
Shareholder transactions
QuickBooks-based financial statements
By focusing on the most commonly used schedules, CloudTax enables business owners to prepare and file their corporate taxes themselves through a do-it-yourself platform.
File Your T2 Yourself or Let Our CPAs Handle It
CloudTax is designed as a do-it-yourself corporate tax filing platform, making it easy for business owners to prepare and file their T2 returns online.
If you would prefer our team of CPAs to handle your corporate tax filing from start to finish, you can learn more here: https://www.cloudtax.ca/corporate-tax