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Reminder: Tax Balances for Small Business CCPC’s due March 31st

by / Friday, 27 March 2015 / Published in Tax Tips

Attention Canadian-controlled private corporations with a December 31st year-end: your corporate tax balances are due on March 31st, 2015. What is the Corporate Tax Balance Due-Day? The corporate tax balance-due day is when you must pay the remainder of your taxes owing for the year. What are the March 31st due day requirements?

Attention Canadian-controlled private corporations with a December 31st year-end: your corporate tax balances are due on March 31st, 2015.

 What is the Corporate Tax Balance Due-Day?

 The corporate tax balance-due day is when you must pay the remainder of your taxes owing for the year.

What are the March 31st due day requirements?

For small business corporations operating as a CCPC throughout the tax year that have claimed the small business deduction for the current or previous tax year, the balance of tax owing is due three months after the tax year end.

This makes March 31st the applicable balance due day for CCPC’s with a Dec. 31st year end, so long as your small business also meets one of the following criteria:

  • your corporation’s taxable income for the previous tax year doesn’t exceed its business limit;
  • the total taxable income amounts of all associated corporations for the previous tax year (ending in the previous calendar year) doesn’t exceed the total of their business limits for those tax years.

 

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How do I pay the remainder of my taxes owing? You can pay the remainder of your taxes owing in the most convenient way to you, including your own financial institution’s online banking service or directly with the CRA’s My Payment service. You can also pay in person at your bank, by mail, or with a wire transfer.Additional Deadlines for Dec. 31st Year End Corps If you’re a Dec. 31st year end corporation, also take note of the additional deadlines that apply to you.

  • GST Payment and Filing: As an annual filer with a December 31st fiscal year end, you must pay your net GST owing by April 30th, 2015, and you will need to file your GST return by June 15th, 2015.

 

  • T5 for Dividend Payment to Shareholders: You will have to file your T5 information return by the last day of February for the previous year. If the last day of February lands on a weekend or holiday, you should file on the following business day.

 

  • T2 Corporation Income Tax Return: The deadline for filing your Corporation Income Tax Return is no later than 6 months following your fiscal year end.

 

Note: We recommend you transfer your “due from shareholder” balance to an owing position from a receivable to avoid negative tax repercussions. The shareholder balance can be cleared out by way of a management bonus or dividend.

If you need help with filing your T2 or determining your corporate tax balances owed, please contact us at Tantelo! Let us do the number crunching so you can focus on your business! 

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