Canada Revenue Agency Website

From District 8 Kin

The following information has been pulled directly from the Canada Revenue Agency website as of April 1, 2005 and is provided by National as a reference guide only. Canada Revenue Agency Website A. Corporation Tax Return http://www.cra-arc.gc.ca/tax/business/topics/corporations/return/menu-e.html

Corporation tax return The T2 return is the form which all corporations have to file every tax year even if there is no tax payable. This includes:

• non-profit organizations

• tax-exempt corporations

• inactive corporations

There are other formats you can use to file your T2 return. For more information, see What to file. http://www.cra-arc.gc.ca/tax/business/topics/corporations/return/menu-e.html

Who has to file a T2 return Resident corporations All corporations, including:

• non-profit organizations

• tax-exempt corporations

• inactive corporations

have to file a T2 return for every tax year, even if there is no tax payable. The only exception to this rule is a corporation that was a registered charity throughout the year. http://www.cra-arc.gc.ca/tax/business/topics/corporations/return/file-e.html

What to file Corporation Internet Filing Most corporations can file their return electronically using the Internet. You must use CRA-approved software that has been certified for Corporation Internet Filing. For information on your eligibility, available software, and more, visit our Web site at www.cra.gc.ca/corporation-internet. You can also use one of three formats to file your paper return by mail or in person.

1. Using our preprinted returns. We print two different returns:

• The T2 Corporation Income Tax Return has eight pages. Any corporation can use it.

• The T2 Short return is a simpler version of the T2 Corporation Income Tax Return.

2. Using T2 RSI Return and Schedule Information Is the format for computer-printed returns produced by tax preparation software.

3. Using facsimile returns These returns are exact copies of our T2 return. They have to meet our standards of format, legibility, and paper quality. However, you can print them on separate pages, instead of on the back and the front of each sheet. http://www.cra-arc.gc.ca/tax/business/topics/corporations/return/what/menu-e.html

Getting a return Corporations can obtain returns by either:

• calling 1-800-959-2221

• using our online order form to have a printed copy of the return mailed to you, or

• download the return from our forms and publication website.

http://www.cra-arc.gc.ca/tax/business/topics/corporations/return/getting-e.html When to file your return

Be sure to file your return no later than six months after the end of each tax year. The tax year of a corporation is its "fiscal period". When the corporation's tax year ends on the last day of a month, file the return by the last day of the sixth month after the end of the tax year. When the last day of the tax year is not the last day of a month, file the return by the same day of the sixth month after the end of the tax year. Examples Tax year-end: March 31 Filing deadline: September 30 Tax year-end: August 31 Filing deadline: February 28 Tax year-end: September 23 Filing deadline: March 23 http://www.cra-arc.gc.ca/tax/business/topics/corporations/return/when/menu-e.html

B. Income Tax Guide to the Non-Profit Organization (NPO) Information Return http://www.cra-arc.gc.ca/tax/nonprofit/menu-e.html

Chapter 1 - General Information http://www.cra-arc.gc.ca/E/pub/tg/t4117/t4117-e.html Does the organization you represent have to file a Non-Profit Organization (NPO) Information Return? http://www.cra-arc.gc.ca/E/pub/tg/t4117/t4117-e.html#P126_4825 Under subsection 149(12) of the Income Tax Act, an organization may have to file a Form T1044, Non-Profit Organization (NPO) Information Return for a fiscal period ending after December 31, 1992, if it is:

• a non-profit organization described in paragraph 149(1)(l); or

• an agricultural organization, a board of trade or a chamber of commerce described in paragraph 149(1)(e).

However, the organization will only have to file a NPO information return if:

• it received or was entitled to receive taxable dividends, interest, rentals, or royalties totalling more than $10,000 in the fiscal period;

• the total assets of the organization were more than $200,000 at the end of the immediately preceding fiscal period (the amount of the organization's total assets is the book value of these assets calculated using generally accepted accounting principles); or • a NPO information return had to be filed for a previous fiscal period.

Notes Corporations operating exclusively to provide low-cost housing for the aged are not required to file Form T1044 if no part of the income was payable to or available for the personal benefit of any proprietor, member or shareholder. Subsection 149(12) does not apply in such cases, since these corporations are exempt from Part I tax under paragraph 149(1)(i). Registered charities, registered Canadian amateur athletic associations, and registered national arts service organizations do not have to file Form T1044. When calculating whether or not you have to file the NPO return, you should only include the actual amount of taxable dividends that the organization received or was entitled to receive. Once an organization has filed a NPO information return for a fiscal period, it must file an information return for all subsequent fiscal periods, as long as it remains an NPO and regardless of the dollar value of its revenues or the book value of its assets in those later years. When does an organization have to file its annual return? http://www.cra-arc.gc.ca/E/pub/tg/t4117/t4117-e.html#P149_8544 An organization has to file its NPO information return no later than six months after the end of its fiscal period. Use the envelope enclosed with the NPO information return package to mail your return to: Ottawa Technology Centre 875 Heron Road Ottawa ON K1A 1A2

You can also drop it off at your tax services office. The organization you represent may have more than one fiscal period ending in a 12-month period (or a 53-week period for corporations). In this case, it has to file the NPO information return for each of these periods, no matter how long they are.

If the organization has to file a NPO information return and fails to do so on time, the basic penalty is $25 a day. There is a minimum penalty of $100 and a maximum of $2,500 for each failure to file. We can waive penalties if you file the NPO information return late because of extraordinary circumstances beyond your control. If this occurs, include a letter with the return giving the reasons why the return is late. If you need more information, see Information Circular IC92-2, Guidelines for the Cancellation and Waiver of Interest and Penalties.

T1044 Non-Profit Organization (NPO) Information Return http://www.cra-arc.gc.ca/E/pbg/tf/t1044/README.html You can view this form in: PDF t1044-05e.pdf (27 KB) For people with visual impairments, these alternate formats are also available: E-text t1044-05e.txt (4 KB) Last update: 2005-03-09 Available in print: 2005-06-03 For more information, see our help file. You can also order printed copies and multiple formats of this form, such as large print, Braille, audio, and E-text (accessible electronic text).

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