According to the Canada Revenue Agency, the first tax year of a new small business may be of any length, not exceeding 53 weeks. For example, if a business is formed on Sept. 1, a business owner may choose to have the fiscal year end by Aug. 31, and does not need to make the fiscal year end on Dec. 31. Every year after the first year of operation, the fiscal year then ends on Aug. 31.
Basically, by choosing a fiscal year-end after Dec. 31, taxes due for the first fiscal year can be deferred until the next calendar year. Of course, it is best to consult with a tax professional before committing to any fiscal year-end dates.