Tax Documents Required for Canadian Businesses

Tax Documents Required for Canadian Businesses

By Samantha Garner, GoForth Institute

Whether you’re starting your small business as a sole proprietorship, partnership, corporation or cooperative, there are forms that Canada Revenue Agency will need from you.

Not all forms may apply to your company, or you may need additional forms in certain circumstances that aren’t listed here. Use this list as a guide, but consult with your lawyer or accountant when filing your company records.

Sole Proprietorship

A T1 must be filed if you have to pay tax for the year, if you disposed of a capital property, had a taxable capital gain in the year, or if you’re required to make a CPP/QPP (Canada Pension Plan/Quebec Pension Plan) payment on self-employed or pensionable earnings for the year.

GST/HST reporting periods must also be followed – annually for $1,500,000 or less annual taxable revenues, quarterly for $1,500,000 up to $6,000,000, or monthly for more than $6,000,000.

Here are some forms you may need for your sole proprietorship:

• Report income or loss on a T1 (Personal Income Tax and Benefit Return)
• File a return if making any of these possible claims: an income tax refund, a refundable tax credit, a GST/HST credit, or a Canada Child Tax Benefit
• Form T2125: Statement of Business or Professional Activities
• Form T2042: Statement of Farming Activities
• Form T1163: Statement A – AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals
• Form T1164: Statement B – AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Additional Farming Operations
• Form T1273: Statement A – Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals
• Form T1274: Statement B – Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Additional Farming Operations
• Form T2121: Statement of Fishing Activities
• Financial Statements

Partnership

Each partner needs to include a share of the partnership income or loss on a personal, corporate or trust income tax return. This must be reported whether your income is received in the form of a share in money or a credit to the capital account.

Here are some forms you may need for a partnership:

• Form T5013: Partnership Information Return– if the partnership has six or more members, or if one of the members is a member of another partnership
• Form T2125: Statement of Business Activities or Professional Activities
• Form T2042: Statement of Farming Activities
• Form T1163: Statement A – AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals
• Form T1164: Statement B – AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Additional Farming Operations
• Form T2121: Statement of Fishing Activities
• Financial Statements
• Form T1273: Statement A – Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals
• Form T1274: Statement B – Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Additional Farming Operations
• GST/HST return
• Form T661: Claim for Scientific Research and Experimental Development in Canada
• Form T5013 SCH 2: Charitable Donations, Gifts, and Political Contributions

Corporation

As a corporation, you must pay tax on its income as a separate legal existence by filing its own tax return. Registration for GST/HST must be performed if annual revenues are more than $30,000.

Here are some forms you may need for a corporation:

• T2: Corporation Income Tax Return – filed within six months of the end of every tax year, even if no taxes are owed
• Complete financial statements and necessary schedules must be attached to the T2 return

Cooperative

Cooperatives are generally subject to the same taxes as other companies. Here are some forms you may need for a cooperative:

• Form 3022: Annual Return – must be sent to the Director within 60 days following a cooperative’s anniversary date
• Form 3001: Articles of Incorporation
• Form 3003: Notice of registered office or notice of change of registered office
• Form 3004: Articles of Amendment
• Form 3006: Notice of directors or notice of change of directors
• Form 3009: Articles of Amalgamation
• Form 3011: Articles of Continuance
• Form 3141: Articles of Arrangement
• Form 3014: Articles of Reorganization
• Form 3015: Articles of Revival
• Form 3017: Articles of Dissolution
• Corporation Return form filed within six months after each fiscal year-end

As a rule, you can deduct any reasonable expense you make to earn business income, no matter the form your business takes. Examples of deductions may include: maintenance and repairs; insurance; advertising; telephone and utilities; motor vehicle expenses; management and administration fees; interest on money borrowed to run your business; fuel costs; convention expenses; business use of home expenses; capital cost allowance; or computer leasing costs.

Samantha Garner is GoForth Institute's Director, Communications.  Contact Samantha by email: samantha@goforthinstitute.com

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