Zero tax return for inactive companies

Operational inactivity does not mean tax immunity. Neglecting your tax return for a dormant business may seem trivial, but the financial consequences can be disastrous. Between late-filing penalties and arbitrary assessment notices, you can jeopardize your company's financial stability, even if it's inoperable.

Take steps now to avoid these risks, and stay tax compliant with the support of!

An online solution for filing your zero income tax return

A simplified process for inactive companies

To meet the specific needs of inactive companies, has developed an online solution to simplify the completion of zero returns. Depending on the package chosen, you receive a form to complete yourself, the assistance of an experienced tax specialist guaranteeing that your tax year-ends are perfectly completed and compliant, and the assurance that your reports are sent to the relevant authorities on time.

Don't underestimate the financial impact of this declaration on your company, even if it is inoperative. Rely on's tax expertise to fulfill your year-end tax obligations, and act now by subscribing to one of our online packages!

Avoid penalties and arbitrary notices of assessment

If you fail to file your tax returns to 0, or file them incorrectly, you may be subject to arbitrary notices of assessment issued by the tax authorities. This may result from a failure to respond to an inquiry, a late or inaccurate return, or non-compliance with tax obligations.

In addition, in the event of delay or failure to reply, daily penalties may be imposed. These penalties, accruing for each day's delay in submitting the required tax documents, can be calculated as a percentage of the amount of tax due, or on a fixed basis. These daily charges, while individually minimal, can quickly accumulate, resulting in a substantial increase in the total amount owed.


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Why choose for your zero income tax returns?

Great value for unparalleled expertise

At, we've assembled a team of accountants and tax professionals who excel in the tax fields in Quebec and Ontario. This diversity combined with the accumulated experience of our members enables us to offer you an unrivaled tax reporting service for companies with no amounts to disclose.

What's more, we've worked hard to develop workflows that allow us to streamline our operations, thereby reducing internal costs. This efficiency translates into savings which are then passed on in the rates we offer, while guaranteeing total compliance, maximum accuracy and meticulous monitoring of current tax regulations.

The benefits of tax compliance

In addition to zero-rated returns, we offer a range of online solutions, consulting services, guides and a wealth of free information to answer all your questions. Whether you need advice on your company's financial management or future reactivation needs, our team is ready to assist you.

When you call on our team at, you'll benefit from reliable, personalized expertise to manage your corporation income tax, business incorporation or other tax needs. We are committed to providing you with quality service, enabling you to maintain rigorous compliance and protect your company.



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What is an inactive company from a tax point of view?

Broadly speaking, the definition of an inactive company is straightforward. It is a registered entity which, although legally constituted, does not conduct significant business operations over an extended period of time. These companies do not usually generate revenues, carry out active financial transactions or engage in commercial activities related to their original purpose.

They may exist for reasons such as the preservation of intellectual property, future strategic planning, or to retain commercial rights, while remaining without any concrete operational activity.

Inactive companies often benefit from advantageous tax conditions, such as reduced tax liabilities and simplified tax filing procedures. Nevertheless, to maintain their inactive status, they must comply with specific requirements. These include filing returns regularly, even if they are inactive, and communicating their status to the tax authorities.

How long can a company remain inactive before having to file zero income tax return?

In Canada, a company can generally remain inactive for a period without having to file a return. However, depending on the province and the company's status, regulations may vary.

In Quebec, for example, if you have no revenues or expenses, you must still file an annual declaration even if there has been no activity. Penalties may apply for failure to file. In Ontario, if your company is inactive and has had no significant business activity, it may be exempt from filing an annual return.

It's crucial to regularly check the filing requirements to ensure compliance with current tax rules. Consult your provincial tax authorities or contact us for specific guidance on whether or not you need to file a 0 return.

Do I still have to file tax returns for an inactive business?

Yes, in Quebec it is necessary to complete and submit annual or periodic tax returns to maintain their status with the tax authorities. These returns demonstrate that the organization has not generated any income, has not carried out any active financial transactions and they confirm its inactivity.

In Canada, specific requirements vary by jurisdiction and type of company. Some provinces offer simplified regimes, but reporting is often mandatory to maintain a company's tax status. Failure to comply with these reporting obligations may result in penalties or loss of status, which could impose more stringent tax obligations.

What are the consequences of not declaring an inactive company?

Companies that are not active need to be particularly vigilant about their tax returns. Even in the absence of activity, an inaccurate or unfiled return can result in significant costs.

For example, if a company fails to pay its taxes by the due date, the Canada Revenue Agency (CRA) imposes an initial penalty. This penalty starts at 5% of the tax owed, with an increase of 1% for each month of delay, extending up to a maximum of 12 months. This means that the later the payment, the higher the penalty.

In cases where a company has already received a late payment penalty from the CRA, and fails to file a new tax return, even at zero, the penalties become more severe. The penalty then increases to 10% of the unpaid tax, plus an additional 2% for each month of delay, up to a maximum of 20 months.

It's crucial to pay close attention to the accuracy and punctuality of their tax returns, even if they don't declare any income. This avoids unnecessary costs and ensures tax compliance.

Why keep a company dormant rather than dissolving it?

Maintaining an organization in dormant status rather than dissolving it has several advantages. Firstly, it preserves the existing business number, commercial rights and legal structure, making it easier to resume business without having to recreate a new entity. It can also be more economical in the long term. Dissolution involves significant legal and administrative costs, while maintaining a dormant company is often less costly and requires fewer formalities.

On the tax front, a dormant company can benefit from simplified tax regimes, reducing reporting obligations and tax burdens, unlike dissolution, which can entail heavier tax consequences.

How do I reactivate a fiscally inactive company?

To reactivate a fiscally inactive company in Quebec or Ontario, it is often necessary to follow a few specific steps. First, ensure that all overdue reporting obligations, such as annual returns, are completed and submitted to the tax authorities. Secondly, it may be necessary to settle any outstanding balances or penalties incurred during the period of inactivity.

Depending on the jurisdiction and status of the company, it may be necessary to submit specific reactivation documents, such as a declaration of reactivation or updates regarding the company's structure. Sometimes, reactivation fees may also be required.

It is essential to consult local tax authorities or contact our team of experienced tax specialists for precise instructions on reactivating a tax-inactive company. Each jurisdiction may have its own procedures and requirements, so it's crucial to comply with them to re-establish your status.

How do I permanently close a dormant company in Quebec or Ontario?

To finally close a dormant company in Quebec or Ontario, it is necessary to follow certain steps. First, make sure the company has paid all its debts and taxes. Next, the appropriate provincial authorities must be informed of the intention to dissolve the company. This usually involves completing and submitting specific dissolution forms and paying the associated fees.

In Quebec, it is necessary to complete a dissolution form with the Registraire des entreprises and ensure that all obligations are met before proceeding with the dissolution. In Ontario, the dissolution process involves completing a dissolution form with Ontario Business Services and ensuring that all documents and taxes are in order.

It is strongly recommended that you consult a professional or a lawyer specialized in commercial affairs to ensure that all legal steps and obligations are respected when finally closing a dormant business in Quebec or Ontario.

How to declare dormant business income

To report income from an inactive business, you need to file a corporate income tax return, even if no income has been generated. Clearly indicate the company's inactive status and report all income at $0.

Make sure you meet all other tax requirements, such as declaring contingent assets or liabilities. It's a good idea to consult an accountant or tax specialist to ensure compliance with current tax regulations.

Subscribe to one of our packages to get help with your $0 return in Quebec and Ontario.