Corporate Tax Filing and Planning Accountant Mississauga Toronto
At MadanCPA, we offer expert corporate tax filing and planning services delivered by some of the top accountants in Mississauga and Toronto. Our dedicated team ensures that your company’s corporate tax return is prepared accurately and filed promptly, helping you stay compliant with all regulations. Our corporate tax preparation services also include GST/HST compliance, as well as the preparation of T4 and T5 slips and financial statements.
In addition to tax return preparation, we provide comprehensive corporate tax planning services for businesses across Canada.
● Our strategic tax planning process focuses on maximizing deductions and implementing effective income-splitting strategies with family members.
● We also optimize owner compensation by assessing the benefits of receiving dividends versus salary.
● We improve the corporate structure by recommending holding companies and family trusts.
Allan Madan and the MadanCPA team (Accountants in Mississauga) bring over 20 years of experience, serving clients across Canada and internationally, including major cities such as Toronto, Mississauga Calgary, Vancouver, and Montreal.
Below, you’ll find a comprehensive list of our corporate tax filing and planning services.
Listing of Corporate Tax Filing and Planning services by CPA in Mississauga and Toronto Ontario:
Corporate Tax Return (T2) Preparation and Filing for Businesses
We specialize in preparing T2 Corporate Income Tax Returns for small and medium-sized businesses across Canada, including freelancers, IT consultants, professionals, online sellers, and real estate investors. Our goal is to ensure you pay the minimum amount of tax possible while remaining compliant with all regulations.
Corporate Tax Planning
When on boarding a new corporate client, one of our first steps is to develop a tailored corporate tax plan. This process includes maximizing corporate tax deductions, implementing income-splitting strategies with family members, and optimizing the owner's compensation by evaluating the benefits of dividends versus salary. We also assess the advantages of establishing a holding company or family trust. Our unique approach to corporate tax planning sets us apart from the competition and delivers significant benefits to our clients.
GST/HST/PST Sales Tax Returns Preparation and Filing
We provide preparation and filing services for GST/HST and PST sales tax returns for Canadian businesses selling products or services nationwide. Given that each province has its own sales tax rate and filing requirements, we ensure that your returns are accurately completed and submitted.
T4 Slip Preparation/Filing and Payroll
We prepare T4 slips for shareholders of corporations receiving a salary. Our services include optimizing compensation strategies to reduce overall tax burdens, helping you maximize financial benefits while staying compliant with tax regulations.
T5 Slip Preparation/Filing and Dividends
We assist with the preparation of T5 slips for shareholders receiving dividends from private corporations. Our team accurately classifies dividends as eligible dividends, non-eligible dividends, return of capital, or capital dividends to ensure compliance and maximize tax efficiency.
GST 74 Quick Method Election
We offer support for the GST 74 (Quick Method Election), which simplifies GST/HST reporting for eligible businesses and reduces tax obligations. This election is particularly beneficial for freelancers, independent contractors, and IT consultants.
T2 Treaty-Based Corporate Tax Return Preparation and Filing
We prepare T2 Treaty-Based Tax Returns, including Schedule 91 and Schedule 97. This filing is essential for foreign corporations conducting business in Canada without a permanent establishment, helping them avoid Canadian income tax.
RC1 Business, Payroll, GST/HST, Import, and Export Numbers
We assist with RC1 registrations to obtain necessary GST/HST, business numbers, and import/export numbers. This is crucial for foreign companies expanding into Canada to ensure they can operate legally.
Section 85 Rollover Tax Planning, Preparation, and Filing
We prepare CRA Form T2057 and Asset/Share Transfer Agreements for Section 85 Rollovers, allowing assets or shares to be transferred to a Canadian corporation on a tax-free basis. This is often used for transferring shares or real estate assets to a holding company.
Succession Planning
We provide succession planning advice to ensure a smooth and tax-efficient transition of your business to your heirs. One effective strategy is the Estate Freeze, which involves restructuring your corporation and establishing a family trust.
Voluntary Disclosure Program Applications
We prepare and file Voluntary Disclosure Applications (VDP) with the Canada Revenue Agency for individuals who have underreported income or failed to file certain tax forms. Our high success rate is due to our thorough assessment of your eligibility before applying.
T3 Trust Return Preparation and Planning
Our team offers comprehensive T3 Trust Return preparation and filing services for family trusts, estates, and bare trusts. We are dedicated to ensuring that your returns are filed accurately and efficiently for the most tax-efficient outcomes.
T2054 Election for a Capital Dividend
We assist with the T2054 Election for a Capital Dividend, allowing corporations to designate and distribute amounts from their Capital Dividend Account (CDA) tax-free to shareholders. Our services include preparing the T2054 Form and the T2SCH89, Request for CDA Balance.
The choice between a salary and dividends depends on your circumstances. For instance, certain expenses—such as childcare costs and employment-related expenses (like vehicle and home office costs)—are only deductible from salary. In such cases, receiving a salary is more beneficial. Additionally, if you have significant medical expenses or education costs (like university or college tuition), a salary can help you fully utilize medical and tuition tax credits. If none of these factors apply, consider opting for dividends. Dividends typically have a lower tax rate than salary and are not subject to Canada Pension Plan premiums, which can lead to cost savings. Plus, using a dividend strategy can help you avoid the administrative costs associated with payroll compliance.
The TOSI (Tax on Split Income) rules, introduced in 2019, are designed to prevent Canadian business owners from splitting income with spouses, children, and other family members through corporate dividends. While income splitting can effectively reduce the overall family tax burden, dividends classified as TOSI are taxed at the highest marginal rate of 53%. Fortunately, there are exceptions to these rules. For instance, adult family members who are actively involved in the business and receive a reasonable dividend for their contributions instead of a salary may qualify for an exception. Additionally, businesses outside the service sector can also be exempt if they meet the following criteria: (a) the shareholder is at least 25 years old, (b) less than 90% of the company’s revenues come from services, and (c) the business is not a professional corporation.
Holding a rental property through a holding corporation offers significant advantages, including limited liability for shareholders and easier succession planning for future generations. However, there are notable disadvantages, such as (a) difficulty qualifying for a corporate mortgage, (b) a higher corporate tax rate of 50.17% on net rental income, and (c) a capital gains tax rate of 33% for corporations compared to 26.5% for individuals. These factors should be carefully weighed when deciding how to hold your rental property.
The RDTOH account applies to Canadian-controlled private corporations (CCPCs) earning passive income, such as rent, royalties, interest, and dividends. This account increases by $30 for every $100 of passive income earned. Corporations can also receive a tax refund by utilizing their RDTOH balance, with a refund rate of 38 cents for every dollar of dividends paid to shareholders. Incorporating the RDTOH account into your corporate tax planning is essential for maximizing tax efficiency.
The small business deduction allows associated CCPCs to benefit from a lower corporate income tax rate of 12% on annual business profits up to $500,000. Profits exceeding this threshold are taxed at a rate of 26.5%. To maximize the small business deduction (SBD), consider creating multiple corporations owned by different family members. For example, if your wife owns 100% of Wife Co. and you own 100% of Husband Co., both corporations can each claim their SBD limit of $500,000, totalling $1,000,000. It’s crucial to consult with a corporate tax planner in Mississauga or Toronto before implementing such strategies to ensure compliance and effectiveness.
The recipient corporation, such as a holding company, can claim a tax deduction under Section 112 of the Canadian Income Tax Act for dividends received from a connected corporation. A corporation is considered connected if the parent corporation owns at least 10% of its shares. These dividends are reported on Schedule 3 of the T2 corporate tax return.
A capital dividend is a tax-free distribution paid from a Canadian Controlled Private Corporation’s (CCPC) capital dividend account. Before payment, necessary paperwork must be approved by the CRA, including a director’s resolution for declaring the capital dividend, Schedule 89 (to verify the capital dividend account balance), and Form T2054 (election for a capital dividend).
Shareholders are required to pay personal income tax on loans received from their corporation unless the loan is repaid within one year of the corporation’s year-end. Exemptions exist for employee car loans and employee home loans, provided the loan was issued due to the individual’s employment and not preferential treatment as a shareholder.
You may avoid Canadian taxes on profits earned by a foreign corporation if you can demonstrate (a) a valid business reason for operating through an offshore company and (b) that the mind and management of the foreign corporation reside in that jurisdiction. For instance, if you incorporate a marketing agency in Barbados, hire local employees, and have management based there, you may not owe Canadian taxes on the profits generated, provided there's a legitimate reason for the business setup.
The definition of ‘permanent establishment’ is outlined in Canada’s tax treaties with various countries. Generally, it refers to a fixed place of business, such as a retail store, office, or factory. If your corporation has a permanent establishment in a foreign country, it must pay corporate income taxes to that country on profits earned there. For example, if a Canadian corporation opens a bakery in the U.S., it will be required to pay U.S. income tax on the profits from that location. It's advisable to consult an experienced corporate tax accountant in Mississauga or Toronto before expanding your business internationally.
Client Testimonial:
I have enjoyed the fortunate experience of having to approach Allan Madan on some advice about P&L and Balance Sheet issues relating to corporation taxes. Without prior knowledge about this organization, I was able to get to their website, pose my questions and get very accurate details on how to resolve my problems. All responses were prompt and to the point and it helped me quickly resolve my problems. There was absolutely no hesitation on Allan’s part to help. I would highly recommend Allan Madan and his organization, to anyone in need of a responsible accounting firm. Check out their website and convince yourself at: www.madanca.com - Joseph Pereira
Related Videos
Hello,
I am interest in doing a corporate tax return on my own, but after reading your articles, I realize it is pretty complicated. Can you recommend any self-learning resources for theory on corporate tax?
Hello Jeff,
Corporate tax theory is discussed in detail in most university course textbooks. Personally speaking, the one in the link below has done wonders. It breaks down complex corporate tax concepts into smaller, manageable ideas. Corporate tax certainly is a difficult area, but this textbook does a fantastic job.
hello Allan,
really it helps me a lot. Thanks.
Nice article
Hi Sir
Can a corporation owner(Owner operator truck driver-single shareholder) consider himself as self employed(or issue T4A) for driving job done for his own company?This will allow shareholder additional deductions in personal tax.
Thanks
kuhan
Hi Kuhan, no, he cannot consider himself self-employed. He can either receive a salary (reported on a T4 slip) or dividends (reported on a T5 slip) from his corporation.
Hi Alan,
If someone as owner of a company(as a company registered in Canada) does research for an individual or company (in this case, they are foreign and they locate in middle east) and earns revenue, in which line should he declare this earning for his company? Does it need any Tform?
I appreciate if you let me know about it.
Best Regards
Vahid
Note: The company which is located in Middle East is not Canadian and there is no relationship with Canada.
Hi Vahid,
The revenue should be reported on a T2 Corporate Tax Return, and on GIFI Schedule 125 (attached to the T2 Return). I’m assuming that you have an incorporated company in Canada.
Good Afternoon,
What is the cost for doing incorporation taxes and book keeping yearly?
Thank you for reaching out to me.
Our services and fees are as follows:
Initial Tax Planning + Corporate Tax Return Preparation – $1,375
GST/HST Return Preparation – $150
T5 Slip Preparation (for dividends paid to you) – $100
Bookkeeping – $50 / hour if we do it or $80 for 1 hour QuickBooks training session
Disbursements and taxes are extra
Hello,
I own my own small business. I am not a corporation, but an LLC, with no employees. I am still quite small, but I would like to get on track with filing my small business taxes in the best way possible. Do you support LLC small businesses with annual tax returns? And if yes, what are your fees?
Hi Mallory,
Thank you for reaching out to me. Please note that in Canada, there is no such entity as an LLC. I believe you mean to say that you are a sole proprietor. I can certainly help you. My services and fees are as follows:
Tax advice / tax consulting – $110 for 30 minute session
Personal Tax Return (T1) – $200
Statement of Business Income & Expenses (Form T2125) – $350
GST/HST Return – $150
Disbursements and taxes are extra. Please let me know if you have any questions.
Hello Allan,
I have an Ontario Corporation that was set up and never used. How do I go about dissolving it?
Thank you,
Chris
Hi Chris,
You will have to file articles of dissolution. Once you have clearance to dissolve and the articles are approved, you will have to file a FINAL corporate tax return. Before permission to dissolve is granted, all past-due returns must be filed and all outstanding tax balances must be paid.
Hi Madan,
I run cleaning company in Toronto, and about to start with Employee. Employee will be part timers initially before moving to full time. How can I pay them if they are part timers? let says 20 hours a week. Do you advise on this issue that faces the new small business ? And definitely I am looking for an accountant to do the corporate tax return. I watched the youtube where you talked about the benefits of incorporating your business. Currently I am sole propriertor. I would appreciate if you could give me feedback on the issues.
Hi Tenzin,
Thank you for contacting me. Full-time and part-time employees are subject to payroll taxes. You can use the CRA’s online payroll deductions calculator to calculate the amount to pay your employee (net of taxes) and the amount of payroll taxes to remit to the CRA each month https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/payroll-deductions-online-calculator.html This is a free tool. OR you can hire an accountant to help you with this.
I would be pleased to speak to you about my services and how I can help you. To book an appointment with me, please contact my assistant Sade: sade@madanca.com
Hello I am looking to file corporation taxes for my small business . I wanted to find out what the rates for filling are?
Hi Rabail,
Thank you for reaching out. Our services and fees are as follows:
– Initial Tax Planning + Corporate Tax Return Preparation – $1,375
– HST Return Preparation – $150
– T5 Slip Preparation (dividends paid to the owner) – $100
– Bookkeeping – $50 / hour
– Disbursements and taxes are extra
Please let me know if you have any questions.
Hi Allan,
Just watched a few of your tutorial videos and found them very helpful, you did a fantastic job, thanks a lot! One question here, can the business owner claim both salary and dividend? for example, I claim a fixed salary monthly, then claim twice dividends (half year and year end) if there is profits left.
Also, do you help tax preparation for CCPC in other provinces?
Yan
Hi Felix,
Thank you for your kind words. Yes, your strategy will work. You can pay both salary and dividends to yourself. I work with clients all across Canada and would be pleased to help you. Please send details to me by email: amadan@madanca.com
Hello Allan, I came across your 2016 YouTube video about Small Business deductions and enjoyed watching it. I was curious if these deductions ( such as home based office/mortgage expense) are applicable for incorporated businesses or just for non-corporate entities. I started my e-commerce business as a corporation and will soon be completing my first corporate tax return. Thank you !
Hi CJ Landry,
Thank you for your positive feedback. Yes, many of these deductions are available to incorporated entities.
Helli Allan,
I am located in BC and my business is a corporation. Do you do consulting call or Skype call?
Hi Jason,
Thanks for reaching out. I work with clients all across Canada and the US, including the province of British Columbia. We can speak on the phone or online. To book an appointment, please contact my assistant Navpreet, navpreet@madanca.com I look forward to hearing from you.
what are your charges for a corporate tax filing?
Hi James,
The fee to prepare a corporate tax return starts from $1,375 + disbursements and taxes. Please let me know if you have any questions.
Hi ,
I am looking for help and guidance for corporate taxes.
I am an entrepreneur running a corporation with annual income of around 80k.
Items that I may need help with is the T2 return and setting up a holding company.
Please give me an idea of how much your services would cost.