The Canadian Revenue Agency (CRA) has many rules that are there to guarantee that people are filing tax returns properly. If you want to file corporate taxes, you might wonder when you should do it. Meeting deadlines is important to eliminate facing any drastic consequences.
So, if you are wondering when you need to file corporate taxes, you have come to the right place. Keep reading to gain complete information on this topic.
Why Should You Hire An Accountant To File Corporate Taxes In Canada?
An accountant will file corporate taxes on your behalf at the correct deadline and by following all the rules. They will also make sure that no documents are missing and everything is proper. They will save you time, money, and effort in the long run.
You will not have to face any penalty or other loss when you hire an accountant. So, there are endless benefits for you to hiring a professional accountant to file taxes.
When You Should File Your Corporate Tax Returns
The general rule of thumb to remember is that you should file your corporate tax returns six months after your tax year has ended. Your fiscal period is your tax year, which will determine your deadline. On the other hand, if your tax year ends on the very last day of a month, then you have to file a tax return on the last day of the 6th month after the tax year-end.
If it doesn’t fall on the last day, then you have to file on the same day of the sixth month. So, make sure that you follow these guidelines when you file tax returns.
What Records Will You Need To File Corporate Taxes
It is crucial to submit the documents of each expense to support your tax return. Everything should have an itemized receipt that needs to correspond with the same transaction. Here are some of the records the receipts need to show:
- Date of purchase
- Name and address
- Name and address of supplier or seller
- Description of services and goods
- Business number of the seller
If you don’t have receipts that correspond to the expense, the CRA will not allow your claims.
Can You Prepare Your Corporate Tax Returns Yourself?
You can prepare your corporate tax returns by yourself, but you will need to have an accounting degree. Besides that, you will also need basic accounting knowledge and gather information on each rule by the CRA. This can be an extensive process that can drain your time and energy.
Most business owners don’t have an accounting degree and are not qualified for this task. In this case, it is always best to hire an accountant.
You now know when you should file corporate taxes in Canada. Of course, it is not always that easy, which is why it is best that you hire a professional accountant for their services. Once you do, you will get the most out of them for a long time to come.