TAX TIP Do you have questions about filing as a business for the first time? The CRA is here to help

Saturday, 16 July 2022 08:00.AM

The Canada Revenue Agency (CRA) knows that it can be intimidating for new businesses to file their first tax return. That's why we aim to help small businesses by ensuring they have the information and guidance they need to stay organized and to understand and meet their tax obligations.

Here's what you need to know if you are a new business and have questions about filing your income tax and benefit return or your T2 corporation income tax return:

Know your deadlines

Different types of businesses have different filing deadlines, so it is important that you are aware.

• If you are a self-employed individual, or if your spouse or common-law partner is self employed, you have until June 15th to file your income tax and benefit return
• If you are a corporation, you must file your T2 corporation income tax return no later than six months after the end of each tax year. The tax year of a corporation is its fiscal period

Plan ahead

It is important to plan ahead and file your tax return(s)as soon as you can. Doing so may allow you to:

• receive a refund faster
• avoid interrupting your benefit and credit payments
• have the time to get help if you need it
• avoid potential late filing penalties and interest

File electronically – if you can

The CRA encourages you to file your income tax and benefit return or your T2 corporation income tax return online and sign up for direct deposit to get any refund you may be eligible for more quickly and to avoid delays.

• If you are an unincorporated, self-employed individual you can file your income tax and benefit return online using NETFILE
• If you are incorporated you can file your T2 corporation income tax return online using T2 certified software

If you have employees and are filing information returns by mail, you could face a penalty for not filing information returns over the Internet. If you file more than 50 information returns for a calendar year, you must file the returns by Internet file transfer or Web Forms.

Register your business

As a business owner, you should register for a business number. You can register:

• online (note that using Business Registration Online is the fastest and easiest way!)
• by mail or fax
• by phone

Take advantage of our digital services

Using the CRA's digital services is the fastest and easiest way to view and manage your business transactions online.

My Business Account is a quick and simple way to see and manage your company's tax affairs. My Business Account is a secure online portal that allows you to:

• access GST/HST, payroll, corporation income taxes, excise taxes, excise duties and other levies accounts online
• receive your mail online
• submit documents
• view and pay balances
• transfer payments
• get answers to your questions, and more

When fully registered for My Business Account, you will also have instant access to the CRA BizApp, which is a mobile web application for small business owners and sole proprietors. This application offers you secure access to do things like make payments and view accounting transactions.

If you report your business income on a personal income tax return, you should sign up for My Account. My Account is a secure portal that lets you see your personal income tax and benefit information and manage your tax affairs online.

Pay your taxes

The CRA offers many ways for businesses to pay their taxes.

You can pay your taxes online, which is simple and convenient, through any of the following ways:

• through your financial institution's online or telephone banking service
• using the My Payment service
• using My Business Account, My Account, My Business Account mobile app and CRA BizApp
• by credit card, PayPal, or Interac e-Transfer through a third-party service provider

You can also opt to pay your taxes in person at:

• any Canada Post outlet, using cash or a debit card, along with a QR code you can generate using My Account or MyCRA mobile app
• your Canadian financial institution with a remittance voucher

For more information on payment options, go to: Payments for businesses.

GST/HST for businesses

If you have gross revenue of $30,000 or greater from world-wide sales, you must collect the goods and services tax / harmonized sales tax (GST/HST) on taxable supplies of property and services made in Canada, with some exceptions. The CRA has information to help GST/HST registrants file and remit the GST/HST they have collected.

To find out if you need to register for a GST/HST account, go to When to register and start charging the GST/HST.

You may choose to register voluntarily if you make taxable sales, leases, or other supplies in Canada. Your effective date of registration is usually the day you request your GST/HST account (or up to 30 days before that day). This allows a business to claim GST/HST expenses (input tax credits) that they will incur over time.

Use our Liaison Officer services

The Liaison Officer service is a free service the CRA offers to owners of small businesses and self-employed individuals to help them understand their business tax obligations. A visit from a Liaison Officer is confidential; and the information you choose to discuss with a Liaison Officer will not be shared with other areas of the CRA or anyone else.

There are two ways that businesses or self-employed individuals can benefit from the Liaison Officer service:

1. personalized visits by phone or online (videoconference)
2. webinars for associations or groups

Find more information

Go online to find the information and resources you need to help you and your business:

• make changes to your business and CRA program accounts
• inform the CRA of changes
• access other helpful information

If you are still having difficulties or have questions, our Business Enquires line is also available. You can call this line at 1-800-959-5525.

CRA call agents are available:

• Monday to Friday: 8 am to 8 pm (local time)
• Saturday: 9 am to 5 pm (local time)

For more information about our hours of service, go to Contact the Canada Revenue Agency.

SOURCE: Canada Revenue Agency

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