For a Quebec corporation, year-end triggers several deadlines. A common mistake is assuming that the balance of tax can wait until the T2 and CO-17 filing deadline.
Filing and payment actually follow separate calendars. Regular bookkeeping helps calculate the year’s result earlier and reduces surprises.
1. Filing: six months after year-end
The CRA and Revenu Québec generally require a corporation to file its returns within six months of the end of its tax year.
2. Payment: an earlier deadline
The federal balance is generally due two months after tax year-end. Certain Canadian-controlled private corporations may qualify for a three-month deadline when the CRA’s conditions are met.
In Quebec, Revenu Québec states that a corporation’s balance of tax must be paid within two months after tax year-end to avoid interest.
3. Records to prepare before year-end
- Bank and credit-card accounts.Complete reconciliations and explain unusual transactions.
- Customers and suppliers.Review receivables, unpaid bills and potential bad debts.
- GST and QST.Compare filed returns with the sales tax accounts in the books.
- Payroll and shareholders.Reconcile remittances, benefits, advances and shareholder transactions.
- Assets and financing.Gather purchase, sale, lease and loan agreements entered into during the year.
4. Monthly bookkeeping reduces catch-up work
When reconciliations, sales taxes and supporting documents are reviewed every month, T2 and CO-17 preparation becomes more predictable. Questions can be resolved while the information is still easy to find.
AU Comptable supports corporations in Repentigny, Mascouche, L’Assomption and Lavaltrie. Up to 10 new business files can be onboarded each month, depending on complexity and deadlines.
Frequently asked questions
Do the T2 and CO-17 have the same filing deadline?
Both returns are generally due within six months of the tax year-end. The balance of tax is due earlier, however, and needs to be planned separately.
Does an inactive corporation still have to file?
A corporation may still have filing obligations even when it had little or no activity. Its circumstances should be reviewed rather than assuming no return is required.
Why start year-end work before the sixth month?
Because the tax balance may be due two or three months after year-end. Up-to-date records make it possible to estimate the balance and file without a last-minute rush.