A friendly reminder to all corporations that you are required to pay your taxes no later than 2 months after your year-end.
If your company is a Canadian Controlled Private Company with Active Business Income and has claimed a Small Business Deduction in either the current or the prior year, then the payment deadline is extended to 3 months. To take advantage of this 1-month extension, your company’s taxable income in the prior year cannot exceed the Small Business Deduction (SBD) limit (currently $500,000), and the total of all companies in an associated group cannot have exceeded the SBD limit in the prior year.
Make sure that you confirm the SBD claim on your company’s prior year tax return. If it does not meet the criteria for the extended payment date, please understand that the due date for the balance owing is 2 months after your year end.
Please feel free to give us a call and arrange an appointment if you have any questions.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.