Please find the beginning of the article in our previous post.
Filing and payment obligations
A corporation that is operating as a personal services business is required to file a T2 Corporation Income Tax Return and pay any amounts owing to the CRA by the corporate tax filing and payment deadlines, like any other corporation.
When completing the T2 return, however, it is important to remember that a personal services business is not eligible to claim the same tax deductions and expenses that are available to other corporations, and they are subject to a higher tax rate.
For details on how to complete the T2 return, refer to Guide T2012, T2 Corporation, Income Tax Guide 2019.
A personal services business is also responsible for GST/HST withholding, filing, and remitting obligations, such as CPP/EI, as well as issuing T4 slips for any employees of their corporation.
Correcting tax returns
If you believe you may be operating a personal services business and would like to correct the tax return(s) you previously filed, you can contact the CRA’s Voluntary Disclosure Program to determine if you meet the eligibility requirements and submit an application.
The preceding information is for educational purposes only. As it is impossible to include all situations, circumstances and exceptions, a further review should be done by a qualified professional. No individual or organization involved in either the preparation or distribution of this text accepts any contractual, tortious, or any other form of liability for its contents.
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