Disclaimer
The information provided on this page is intended to provide general guidance only. We cannot provide any tax-related advice or opinion. We recommend reviewing the CRA website and/or contacting their tax inquiries line, or consulting an accredited CPA firm for information regarding current tax laws. We recommend having any return prepared or reviewed by a professional accountant before filing.
Review the CRA's T2 return guide
Before starting a T2 return, review the CRA's T2 Corporation - Income Tax Guide - Before you start.
A PDF version of the CRA's T2 guide is located here: T4012 T2 Corporation - Income Tax Guide.
The CRA's T2 guide covers topics including:
Assemble information before starting the T2 return
For the best possible experience, assemble the following information and materials prior to undertaking 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 any applicable bookkeeping, trial balance sheets, income statements, general ledgers, and 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 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 ProFile of the prior-year corporation return, if available
- Provide a signed RC59 form to acquire access to the client's business information through the CRA.
Note: A RC59 form is now only to request mail or phone authorization. ProFile recommends that preparers follow the instructions from the T4012 T2 Corporation – Income Tax Guide to acquire full online authorization using the CRA's Represent a Client function.
Complete the T2 return information page
It is not necessary to enter data directly into the T2 jacket for most T2 entries.
Navigate to the Info form in ProFile. 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 jacket.
To learn more about Page 1 and 2 of the T2 jacket, 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.
Complete common T2 return schedules as applicable
The following schedules may need to be completed 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.
Finish the T2 return and EFILE
- Complete other applicable schedules based on corporation status; reviewing the prior year's T2 will direct you on any additional schedules. In addition, the notes attached from changes in the corporation may also point towards additional forms. Use professional judgment in this regard.
- Review the T2 jacket.
- Review the RSI, Warning, and Summary tabs in ProFile's Active Auditor; sign-off or address any warnings. EFILE will not be possible if warnings are outstanding at the time of the EFILE attempt.
- Have the client sign a paper copy of Form T183 to permit client consent for the EFILE to occur.
- EFILE the T2 return.