Don’t pay unnecessary interest!
Most business owners like yourselves know about corporate tax instalments as the monthly corporate tax instalment they make in advance of their corporate tax filing. It’s similar to the regular source deductions you pay for your employees. However, we want to warn you about something most don’t know about corporate tax instalments.
- Even if you had no profit in the previous year, the CRA still expects you to estimate what your profit at yearend.
- If you expect a profit, the CRA expects corporate tax instalments to be paid throughout the year.
- If you don’t, you may be charged interest dating back to when the instalments should have started.
For more information, check out the Corporate Instalment Guide from the CRA.
As with anything, there are different situations and scenarios that may apply including some where instalments aren’t necessary. You should speak to your accountant or ask us if you would like to know if you should be making instalments.
Please do not hesitate to contact us today by calling 416-495-1098 or emailing us at firstname.lastname@example.org.