Tax Returns

Compliance with the income, sales and other tax regulations of various jurisdictions requires, invariably, the filing of a return. These returns are on prescribed form, and must be filed in prescribed manner, within very precise time deadlines. Failure to adhere to these regulations can, and do, result in penalties and interest charges.

Our clients depend on Lohn Caulder LLP to be aware of any and all filing obligations with respect to their business - and to prepare such returns in a timely and economical fashion.

Returns typically prepared during the annual fiscal year work:

Most businesses are operated in corporate form. Corporations in Canada must file an annual T2 corporate income tax return.

In addition, three provinces, Alberta, Ontario and Quebec, require corporations to prepare and file separate returns to their respective tax administration offices. A complete copy of the Federal filing is also required. Apportionment rules have been agreed to by all the Provinces with respect to the allocation of taxable income between them - although there are some minor differences in the calculation of taxable income for those Provinces having their own filing system. The other seven Provinces apply their rates to taxable income as defined in the Federal system, and the Federal Government administers and collects their tax on their behalf.

Both Provincial and Federal corporate income taxes are due 90 days from the end of the fiscal period, although the actual filing of the actual return is not due until six months from the end of that same fiscal period).

Clients may be preparing and filing GST returns on a quarterly basis themselves. Many smaller businesses (maximum annual revenues $500,000) can file annually - often, Lohn Caulder tends to the preparation of that return. GST returns for annual filers are due 90 days after the end of the fiscal year.

PST returns are required, for those in the business of selling "tangible personal property", on a monthly basis. Many businesses not so engaged might need to make occasional filings on a "self-assessment" basis for tangible property acquired outside of the province, but consumed or put to use here. An example: equipment purchased outside of British Columbia. If installed for use in B.C., the business must volunteer the necessary tax. The Federal Customs Department now administers and collects this tax at the border on behalf of the province for all imported goods.

PST returns are due on the 15th of the month following the particular month.

Partnerships with 6 or more partners must file an annual return T5013, which is generally due at the end of March of each year.

If a company is doing business in the United States, it must file an income tax return (Form 1120F for foreign corporations). Such return may or may not make a tax treaty claim that there are no profits taxable by the United States - this is a complex matter. Regardless, either way, the U.S. requires an annual filing.

Each state in the U.S., save for two, has its own income tax system, and requires the filing of unique-to-each-state income tax returns. If your business is doing business in a particular state, such filing may be necessary.

Returns prepared at other times of the year

The Canada Revenue Agency prescribes several types of reporting forms which must be filed within strict time deadlines - (generally, to accommodate the universal filing deadline for personal tax returns of April 30th of each year).

These forms include:

The personal income tax return

These are generally due on April 30th, for income earned in the prior calendar year. Proprietors of unincorporated businesses are given until June 15th to file. No extensions are permitted.

Non-resident persons who utilize the privilege of reporting their rental income from Canadian properties on a net basis have until June 30th of the following year to file a return.

Lohn Caulder LLP is familiar with the filing of all of the above, and many others. Contact us for further details.