Do all corporations must fill an income tax return?
Indeed, business corporations must fill their income tax return every year, even if the corporation does not have to pay taxes or does not have any income. It is the case for non-profit organizations, tax-exempt corporations and shelf corporations.
You can find this information on Canada Revenue Agency’s website:
As you probably know, the income tax return is one of the most important tasks for any business. However, preparing and completing a corporate tax return can be tedious and stressful for yourself and your company. It is not easy, but it is essential to the economy of the country for properly redistributing wealth. So paying your taxes is an essential civic duty to ensure the well-being of all citizens. Refusing to do so is an obstacle to the development and the building of our country. This is why you should entrust your fiscal year-end and your corporate tax returns to experts, in order to get a fair and accurate amount.
We often hear entrepreneurs say that it’s not a big deal if you don’t do your income tax return when you don’t have an income or your business is at a loss. However, in recent years, we have observed an increase of arbitrary notices of assessment from Revenu Québec. With this is mind, you should not take any risk.
What is an arbitrary notice of assessment?
An arbitrary notice of assessment is a notice of assessment given by tax authorities saying that your company owes important taxes, even if the corporation has not completed its tax return. You will then find yourself in a stressful situation with the tax authorities, and they will constrain you to quickly complete your tax return.
Avoid harming your business and being in conflict with tax authorities and complete your corporate tax return in time.