Do I need to file an income tax return for my Canadian corporation?
Posted on April 9, 2009 by admin
Busy Chris asked:
I incorporated my business in Canada earlier this year, but never had the time to do anything with it. I haven’t made any money for it or started advertising or anything. A friend of mine said that I don’t have to file a return for my corporation until I make my first dollar off of it and only after I file tax as a corporation for the first time will I have to do it each year. Is this true?
I incorporated my business in Canada earlier this year, but never had the time to do anything with it. I haven’t made any money for it or started advertising or anything. A friend of mine said that I don’t have to file a return for my corporation until I make my first dollar off of it and only after I file tax as a corporation for the first time will I have to do it each year. Is this true?
No, that is not true. You must file a corporate tax return within twelve months of your date of incorporation regardless of whether or not you have earned income.
On the corporate return you would indicate that the company is currently inactive, but you still must file.
You must file every year regardless of whether your corporation was inactive or active.
At the same time you should have been filing payroll remittances and GST remittances indicating that the corporation was inactive.