Pro Tax T2 return guide

Disclaimer

This info is for general guidance only. We can’t provide tax advice. Check the CRA website, contact their tax inquiries line, or consult a CPA firm for the latest tax laws. We recommend having a professional accountant prepare or review your return before filing.

Here’s what you’ll learn in this article:

Table of contents:

Back to Table of Contents

Review the CRA's T2 return guide before starting

Note: Before starting a T2 return, review the CRA's T2 Corporation - Income Tax Guide - Before you start.

A PDF and HTML version of the CRA's T2 guide is found here: T4012 T2 Corporation - Income Tax Guide.

The CRA's T2 guide covers topics including:

• Who has to file a T2 return?
• When and how do corporations pay income tax?

Back to Table of Contents

Assemble information before starting the T2 return

For an easier experience, assemble the following information and materials prior to starting the T2 return:

• Prior-year financial statements and T2 return, if applicable
• Articles of incorporation
• List of product and services provided in percentages
• Obtain backup electronic copies of applicable bookkeeping (e.g., QuickBooks, Simply accounting, MS Excel, etc.), trial balance sheet, income statement, general ledger, credit card and bank statements of the last month of the corporation year
• Corporate installment payments made during the year
• Copy of prior years' Notice(s) of Assessment (NOA)
• Correspondence with any government relating to the corporation
• List of changes to the corporation from last year (for example, new director, shareholders, new assets, etc.)
• Business number of the corporation (review the incorporation documents or prior-year return)
• Address of corporation, including head office, mailing and location of books, if applicable (you can review the CRA My Account feature for this information)
• Fiscal year-end date of company
• Enter information and carry-forward the return in Pro Tax of the prior-year corporation return, if available
• Provide a signed BusinessConsent form to obtain access to the client's business information through the CRA. We recommend preparers follow the instructions from the  T4012 T2 Corporation - Income Tax Guide to obtain full online authorization using the CRA's Represent a Client function.

Back to Table of Contents

Complete the T2 return information page

Note: For most T2 entries, you don't need to enter data directly into the T2 jacket.

Navigate to the Info form in ProTax. Using the information assembled from the list above, complete the Info form. Most of the information on the Info automatically populates pages 1 or 2 of the T2 form. To learn more about Page 1 and 2 of the T2 form, review pages 20-32 of the T4012 T2 Corporation - Income Tax Guide. This material will clarify type of corporation, the difference between selecting CCPC, public corporation and others, etc.

Back to Table of Contents

Complete common T2 return schedules (as applicable)

You might need to complete these schedules for a T2 Return.

• Import GIFIs to complete Schedule 100 and 125; ensure the balance sheet balances correctly. if this is a new client, review in the accounting software to confirm if the chart of accounts has the correct GIFIs assigned to them.
• Complete Schedule 101 for a first-year corporation filing; complete Schedule 24 if applicable and review lines 70-72.
• Complete Schedule 50 (shareholder information)
• Complete Schedule 8 (CCA of physical assets)
• Complete Schedule 3 (did the corporation issue a dividend to shareholders or receive dividends?)
• Complete Schedule 2 (if the corporation made charitable donations)
• Complete Schedule 11 (did the shareholder receive or make a loan to the corporation?)
• Complete RACDetails (if the corporation is related to or associated with another corporation). Review related forms identified on the RACDetails form (for example., Schedule 9, 23, 49, etc.)

To learn more about schedules, review the CRA's T4012 T2 Corporation - Income Tax Guide.

Back to Table of Contents

Finish the T2 return and e-filing

Complete other schedules based on corporation status. Reviewing last year's T2 will tell you about any extra schedules. Also, notes from changes in the corporation may point to other forms. You should always use your best judgment.

Back to Table of Contents