Know your corporation’s fiscal year-end
Corporate income tax reporting follows the corporation’s taxation year. Filing and payment deadlines can differ; verify both for your company rather than relying on the personal tax calendar.
Keep corporate and personal spending separate
Record shareholder advances, reimbursements and personal expenses correctly. Misclassified transactions can distort financial statements and create tax issues.
Review reasonable business expenses
Document the business purpose of expenses and distinguish current expenses from capital purchases. Evaluate vehicle, home-office and mixed-use claims based on applicable rules and records.
Consider owner remuneration carefully
Salary, dividends and other payments can affect corporate and personal taxes differently. A coordinated review can help avoid decisions based on one tax rate alone.
Check payroll and GST/HST compliance
Reconcile payroll remittances and GST/HST balances to filings. Resolve discrepancies early and retain records that support reported amounts.
Use management reports to guide decisions
Monthly income statements, balance sheets, accounts receivable and cash-flow projections help owners make informed decisions. Tax planning should support the business, not replace operational planning.
Official CRA resource: Canada Revenue Agency. General information; rules and eligibility depend on the facts.