There are different types of taxes and levies which
must be paid in most countries. In states, countries, and provinces all over
the world, there are often many variations. Canada's taxes are no exception, as
several sorts must be followed.
Business tax season is the responsibility of the
business owners throughout the year. Now is a good time to find a tax
professional and start planning your corporate taxes for the tax season ahead.
In this blog, we'll look at what a tax professional is and how this individual
can help you with your business taxes. A Corporate Tax Accountant is someone
who has the experience and credentials to help you with taxes, specifically
business taxes. A Vancouver Corporate Tax Accountant is more
than just a tax advisor.
Companies and companies pay tax on income from
profits and capital. These constitute a relatively small portion of overall tax
revenues. Tax is payable at the corporate level on corporate income before it
is distributed as dividends to individual shareholders. Individuals who receive
a dividend are given a tax credit to reflect the tax paid at the corporate
level. However, this credit does not eliminate double taxation of this revenue,
resulting in a higher level of dividend income tax than other types of income. (Where
income is earned in the form of a capital gain, only half of the income is
taxable; the other half is not taxed). Corporations can deduct capital costs
according to capital cost allowance regulations.
The CRA levies a corporate tax on all provinces and
territories other than Quebec and Alberta. Provinces and territories subject to
a tax collection agreement must use the federal definition of "taxable
income," that is, they are not allowed to provide deductions when
calculating taxable income. These provinces and territories may provide the
companies with tax credits.
All resident corporations, except charities that are
registered, must pay Canadian corporate tax and file the return T2. The
corporation must file T2 returns even if they have no corporate tax to pay and
non-profit organizations, inactive corporations and tax-exempt corporations
should file the returns mandatorily.
If you wish to pay your corporate tax promptly and
file the T2 return on time, you need to know your corporation's tax year-end. A
corporation's tax year or the corporation's fiscal period must be less than 53
weeks. A new corporation can select the tax year-end while filing the first T2
return and can calculate the subsequent tax year accordingly. All these tax
calculations are done in a simplified way by Vancouver
Corporate Tax Accountant.
Why You Need a Tax Professional
Do you not have a tax professional you trust to help
you with your corporate taxes? Starting to look never is too late. Having a
good tax advisor can mean:
Saving money at the time of taxation.
Not having to pull the records out and do it
yourself (and this is about as painful as going to the dentist).
Having someone who can help if you get audited.
The final area of concern will be the importance of
hiring a professional accountant. As a business owner, the CRA does not look
kindly at the companies that prepare their taxes. Each year you should have a
professional accountant who manages all of your books. As well as filing your
corporate tax return professionally, they will also be able to provide you with
important tax advice that you should take advantage of.
