Every business in Canada must file the T2 tax return within six months following the end of each taxation year. All resident or non-resident corporations must file a corporation income tax (T2) return every tax year, even if no tax is due. This includes the following:

• Organizations that are not for profit

• Corporations that are not subject to taxes

• Inactive corporations (no income)

The T2 is Canada's obligatory corporate income tax return form. This statement is known as a "declaration of corporate revenue." Each taxation year, each business or firm must file a corporate income tax (T2). The Canada Revenue Agency has two types of T2 statements that companies can use. The T2 Corporation Income Tax Return is a nine-page return that any corporation can use, and T2 Short Return is a two-page return plus one schedule. All businesses residing in Canada must file a T2 return with the Canada Revenue Agency. The law is stringent; all companies must comply and must be taken very seriously.

What data is required to complete a T2 tax return?

• Name and address of the company

• All company shareholders' names (first and last), addresses, and country of residence are obtained from the Canada Revenue Agency.

• All authorized corporate signatory shareholders' names (first and last), addresses, and countries of residence.

• Complete financial statements (income statements, balance sheets) submitted to the General Index of Financial Information (GIFI)

• The company's primary activities are as follows:

• The company's many sources of revenue (investment income, etc.)

• Whether or not the company's stockholders own shares in other companies or are linked to or related with other businesses.

• Whether the company conducts business or has property in another country

• Whether or not events are held in other provinces in Canada

• Dividends received or paid by the company

• Fixed asset acquisition or disposal

This list is by no means complete, but it offers you a fair idea of what kind of information you'll need to file a T2 in Canada. If the company has any taxes owing, it must be paid within three months from the date of the corporate fiscal year-end. Any unpaid taxes would result in instalment interest in addition to the arrears interest.

If your company's gross income exceeds $1 million, you won't be able to file a paper tax return. Corporate tax returns must be filed electronically. Companies that fail to file their filings online face a $1,000 penalty and 1% interest on any outstanding taxes from the Canada Revenue Agency.