The calculator allows you to calculate the approximate cost of maintenance of accounting services to support and audit the company.
CalculateAll Canadian corporations must prepare financial statements. Financial statements shall be prepared in accordance with the Generally Accepted Accounting Principles of Canada (GAAP of Canada). Financial statements must be presented to shareholders not less than 21 days before the annual meeting.
Compulsory audit requirements mainly apply to not-for-profit corporations, but they can also be exempt from audit in a number of cases.
Financial statements are not required to be provided to state authorities, except for when there is a request during a tax inspection.
Every corporation must file with the Canadian register only an annual return that confirms that the company keeps conducting its business and all legal requirements have been complied with, for example, financial statements have been approved at the annual meeting of shareholders.
Partnerships also do not file financial statements (however, like corporations, they must prepare them). Partnerships that conduct business in the territory of Canada and Canadian partnerships must file form T5013 containing financial information on the partnership if:
Only public business corporations and corporations that have more than 50 shareholders are required by law to file financial statements.
Federally registered corporations must file a tax return within 6 months after the date of the end of the financial period. The tax must be paid within 2 months after the end of the year.
Financial period is 12 months after the date of the end of the previous period. The company itself determines the first period, and the first period can be increased but must not exceed 53 weeks (371 days) after the date of incorporation of the corporation.
Provinces separately set the deadline for filing tax returns and paying tax, but in most cases it is the period of 6 months after the date of the end of the financial year, and the tax must be paid within 2 months after the end of the period.
Similarly to corporations, partnerships themselves determine the first financial year, which must not exceed 53 weeks (371 days) after the date of incorporation of the partnership. The subsequent financial period is 12 months. The company itself determines its first period.
The deadline for filing form T5013 for a partnership depends on the partnership’s structure:
1. By 31 March after the end of the calendar year in which the financial period ended:
2. Within 5 months after the end of the financial period if during that period:
3. In the case of other structures the deadline depends on which of the dates is earlier:
Partners themselves must report on the partnership’s income in the country where they are tax residents.
Individuals (resident in Canada) must file a tax return by 30 April annually. The tax period for individuals is a calendar year.
The penalty for late filing of a tax return is a fixed 5% of the amount of the tax and an additional 1% of the amount of the tax charged for each month of delay, but not more than 12 months.
In the case of late filing of form T5013, the company is imposed with a fixed penalty of 100 CAD and an additional 25 CAD for each day of delay, but not more than 100 days.
The penalty for late filing of a tax return is a fixed 5% of the amount of the tax and an additional 1% of the amount of the tax charged for each month of delay, but not more than 12 months.
In the case of a repeated violation, the penalty doubles (fixed 10%, and monthly 2%, not more than 20 months).
Compulsory audit requirements mainly apply to non-profit corporations.
Audit can be conducted on a voluntary basis (most often it is necessary to attract investment and for banks that assess a credit risk to give credits).
If a Canadian corporation has subsidiaries, it must prepare consolidated financial statements and keep copies of financial statements of the subsidiaries.