Tax Preparation Services in Canada
Canadian tax compliance is administered by the Canada Revenue Agency (CRA) for federal income tax, GST/HST, and payroll, with additional provincial income tax in all provinces except Alberta.
Canadian tax compliance is administered by the Canada Revenue Agency (CRA) for federal income tax, GST/HST, and payroll, with additional provincial income tax in all provinces except Alberta. Fintax Support Limited prepares T2 corporate income tax returns, T1 personal returns, GST/HST returns, and T4/T5 information slips, optimizing the small business deduction, SR&ED investment tax credits, and capital cost allowance claims. We file provincial corporate tax returns in Ontario (T2 Schedule 500), BC, Alberta, and Quebec (separate Revenu Québec filings), and represent clients during CRA audits.
Regulatory Framework
T2 corporate returns are due six months after the corporation's fiscal year-end, but tax owing is due two or three months after year-end depending on CCPC status. GST/HST returns are due one month after the reporting period end. T4 slips must be distributed to employees and filed with CRA by the last day of February following the calendar year.
Our Tax Preparation Services in Canada
T2 Corporate Income Tax Returns
Prepare and file T2 Corporation Income Tax Returns for Canadian corporations with accurate Schedule 100 balance sheet, Schedule 125 income statement, and GIFI coding aligned to your general ledger. We handle CCPC status, small business deduction, Part IV refundable tax, and provincial corporate tax schedules — ensuring your corporate return meets CRA filing deadlines and supports shareholder T1 reporting.
Complete T2 return prep
T2 with Schedules 100, 125, and GIFI prepared from adjusted trial balance with book-to-tax reconciliations.
CCPC and SBD optimization
Canadian-Controlled Private Corporation status verified and small business deduction applied to active business income.
Six-month filing deadline
T2 due six months after fiscal year-end with corporate tax payment due two to three months after year-end.
CRA e-file with NOA tracking
Electronic filing through CRA NETFILE with Notice of Assessment monitored for discrepancies and reassessments.
How It Works
Books and entity review
Review adjusted trial balance, shareholder structure, CCPC status, and prior-year T2 for loss carryforwards and pools.
T2 preparation and schedules
Prepare T2 with GIFI coding, CCA schedules, SR&ED integration, and provincial corporate tax schedules.
Client review and approval
Walk through taxable income, Part I tax, refundable tax, and balance due before authorizing CRA e-file submission.
E-file, payment, and NOA follow-up
Submit T2 electronically, coordinate instalment or balance-due payment, and monitor CRA Notice of Assessment.
Books and entity review
Review adjusted trial balance, shareholder structure, CCPC status, and prior-year T2 for loss carryforwards and pools.
T2 preparation and schedules
Prepare T2 with GIFI coding, CCA schedules, SR&ED integration, and provincial corporate tax schedules.
Client review and approval
Walk through taxable income, Part I tax, refundable tax, and balance due before authorizing CRA e-file submission.
E-file, payment, and NOA follow-up
Submit T2 electronically, coordinate instalment or balance-due payment, and monitor CRA Notice of Assessment.
Canadian corporations file a T2 Corporation Income Tax Return within six months of their fiscal year-end — a calendar-year corporation must file by June 30. Corporate tax payment is generally due two months after year-end (three months for CCPCs that qualify throughout the year). We prepare the full T2 package including Schedule 100 (Balance Sheet Information), Schedule 125 (Income Statement Information), and GIFI-coded financial data that must reconcile to your general ledger. CCPC status unlocks the small business deduction on the first $500,000 of active business income (federal rate approximately 9%) and eligibility for enhanced SR&ED investment tax credits. Part IV tax on portfolio dividends, capital dividend account tracking, and general rate income pool (GRIP) balances are reconciled each year. Provincial corporate tax schedules for Ontario, Alberta, British Columbia, and other provinces are prepared alongside the federal return. Late-filing penalties are 5% of unpaid tax plus 1% per month to a maximum of 12 months, with repeat late filers facing higher penalties under the Income Tax Act.
Common Questions
T1 Personal & Self-Employed Tax Returns
File T1 General Income Tax and Benefit Returns for employees, investors, and self-employed individuals with every schedule, credit, and deduction your situation requires. We prepare returns for T4 employees, T4A contractors, rental property owners, and sole proprietors — maximizing RRSP contributions, capital gains exemptions, and provincial credits while meeting the April 30 or June 15 filing deadline.
Complete T1 return prep
Federal and provincial T1 with Schedules 1, 3, 4, 5, 7, 8, and 9 prepared based on your income sources.
Deduction and credit optimization
RRSP, FHSA, medical expenses, tuition credits, and disability credits applied to minimize net tax payable.
April 30 and June 15 deadlines
April 30 filing for most taxpayers; June 15 for self-employed with balance due still payable by April 30.
CRA NETFILE with confirmation
Electronic filing through CRA NETFILE with confirmation number and direct deposit or payment arrangement.
How It Works
Document collection and intake
Gather T4s, T4As, T5s, T3s, T2202s, RRSP receipts, medical expense receipts, and prior-year Notice of Assessment.
Return preparation and review
Prepare T1 with all applicable schedules, provincial tax forms, and self-employment income on Form T2125 if applicable.
Client review and approval
Walk through refund, balance due, and instalment requirements before authorizing CRA NETFILE submission.
E-file and payment coordination
Submit T1 electronically and coordinate payment via CRA My Payment or pre-authorized debit if balance is owed.
Document collection and intake
Gather T4s, T4As, T5s, T3s, T2202s, RRSP receipts, medical expense receipts, and prior-year Notice of Assessment.
Return preparation and review
Prepare T1 with all applicable schedules, provincial tax forms, and self-employment income on Form T2125 if applicable.
Client review and approval
Walk through refund, balance due, and instalment requirements before authorizing CRA NETFILE submission.
E-file and payment coordination
Submit T1 electronically and coordinate payment via CRA My Payment or pre-authorized debit if balance is owed.
Most Canadian individuals must file a T1 General Income Tax and Benefit Return by April 30 each year for the preceding calendar year. Self-employed individuals and their spouses or common-law partners have until June 15 to file, but any balance owing is still due April 30 to avoid interest charges. We prepare returns covering employment income from T4 slips, investment income from T5 and T3 slips, pension and annuity income from T4A slips, and self-employment or business income reported on Form T2125 (Statement of Business or Professional Activities). Key deductions include RRSP contributions (reported on Schedule 7), FHSA contributions, child care expenses, moving expenses, and capital losses carried forward from Schedule 3. Provincial tax is calculated on Form 428 alongside the federal Schedule 1. Late-filing penalties are 5% of balance owing plus 1% per month for up to 12 months, with repeat offenders facing 10% plus 2% per month penalties under the Income Tax Act.
Common Questions
GST/HST Returns (Quarterly/Annual)
Prepare and file GST/HST returns on schedule — monthly, quarterly, or annually depending on your revenue and filing frequency assigned by CRA. We reconcile input tax credits against output tax collected, handle Quick Method and simplified filing elections, and ensure remittances are paid on time to avoid CRA interest and penalties.
GST/HST return preparation
Form GST34 returns prepared with accurate line-by-line reconciliation of collected tax and input tax credits.
ITC optimization and review
Input tax credits validated against eligible business expenses with proper documentation for CRA audit defence.
Filing frequency management
Monthly, quarterly, or annual filing cycles tracked with payment due dates aligned to your reporting period.
Quick Method election support
Quick Method of accounting reviewed for eligibility and applied to simplify remittance calculations for small businesses.
How It Works
Transaction review and reconciliation
Reconcile sales, purchases, and HST/GST collected and paid from bookkeeping records for the reporting period.
Return preparation
Complete GST34 return with output tax, input tax credits, adjustments, and net tax calculation for the period.
Client review and approval
Present net tax payable or refund position and confirm figures before CRA electronic submission.
File and remit payment
Submit GST/HST return through CRA My Business Account and arrange payment or confirm direct deposit refund.
Transaction review and reconciliation
Reconcile sales, purchases, and HST/GST collected and paid from bookkeeping records for the reporting period.
Return preparation
Complete GST34 return with output tax, input tax credits, adjustments, and net tax calculation for the period.
Client review and approval
Present net tax payable or refund position and confirm figures before CRA electronic submission.
File and remit payment
Submit GST/HST return through CRA My Business Account and arrange payment or confirm direct deposit refund.
Registered businesses must collect GST or HST on taxable supplies and remit the net tax to CRA through periodic GST/HST returns (Form GST34). Filing frequency depends on annual taxable supplies: businesses with over $6 million in revenue file monthly; those between $1.5 million and $6 million file quarterly; smaller businesses may file annually. Payment is due at the same time as the return filing deadline for each period. We reconcile output tax on sales against input tax credits (ITCs) on business purchases, ensuring only eligible expenses with valid documentation support ITC claims. Special rules apply to zero-rated exports, exempt supplies (financial services, residential rent), and place-of-supply rules for interprovincial transactions where HST rates differ (13% in Ontario, 15% in Nova Scotia, 5% GST only in Alberta). The Quick Method of accounting allows eligible small businesses to remit GST/HST at a reduced rate without claiming full ITCs. Late filing incurs penalties of $250 plus 1% of amounts owing per month, and CRA regularly audits ITC claims for validity.
Common Questions
Payroll Remittances (CPP, EI, Income Tax)
Manage Canadian payroll source deductions and remit Canada Pension Plan contributions, Employment Insurance premiums, and income tax withholdings to CRA on schedule. We process payroll on compliant software, calculate employee and employer CPP/EI, apply provincial tax tables, and file T4 slips and the T4 Summary at year-end.
Payroll processing and deductions
Gross-to-net payroll calculated with federal and provincial income tax, CPP, and EI deductions each pay period.
CPP and EI compliance
Employee and employer CPP contributions and EI premiums calculated using current CRA rates and annual maximums.
Remittance deadline tracking
Regular, accelerated, or quarterly remitter schedules tracked with payment due by the 15th of the following month.
T4 and RL-1 year-end filing
T4 slips, T4 Summary, and provincial RL-1 slips prepared and filed by the last day of February each year.
How It Works
Payroll setup and CRA registration
Configure payroll with CRA business number, remittance frequency, provincial tax tables, and employee TD1 forms.
Pay period processing
Calculate gross pay, income tax withholdings, employee CPP and EI, employer CPP and EI, and net pay each period.
CRA remittance submission
Remit source deductions to CRA by the 15th of the following month (or accelerated schedule for larger employers).
Year-end T4 filing
Prepare and file T4 slips for employees and T4 Summary by February 28, plus provincial RL-1 slips where required.
Payroll setup and CRA registration
Configure payroll with CRA business number, remittance frequency, provincial tax tables, and employee TD1 forms.
Pay period processing
Calculate gross pay, income tax withholdings, employee CPP and EI, employer CPP and EI, and net pay each period.
CRA remittance submission
Remit source deductions to CRA by the 15th of the following month (or accelerated schedule for larger employers).
Year-end T4 filing
Prepare and file T4 slips for employees and T4 Summary by February 28, plus provincial RL-1 slips where required.
Canadian employers must deduct Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and federal and provincial income tax from employee pay and remit these source deductions to CRA. Remittance frequency depends on average monthly withholding amount: regular remitters pay by the 15th of the following month, accelerated remitters (over $25,000 monthly) pay within three or seven days, and new small employers may qualify for quarterly remittance. Employee CPP is 5.95% on earnings between the basic exemption ($3,500) and the Year's Maximum Pensionable Earnings (YMPE), with an additional 4% on earnings between the YMPE and Year's Additional Maximum Pensionable Earnings (YAMPE) for 2024 and later. Employer CPP matches employee contributions. EI employee premiums are 1.66% on insurable earnings up to the annual maximum, with employer premiums at 1.4 times the employee rate. Year-end obligations include filing T4 slips and the T4 Summary (T4A for contractors) by the last day of February, and issuing copies to employees. Quebec employers remit QPP and QPIP to Revenu Québec instead of CPP and EI, with RL-1 slips replacing T4s for Quebec employees.
Common Questions
SR&ED Tax Credits (Scientific Research & Experimental Development)
Identify, document, and claim Scientific Research and Experimental Development (SR&ED) investment tax credits on qualifying R&D expenditures. CCPCs receive a refundable 35% federal credit on the first $3 million of qualifying expenditures, while other corporations claim a 15% non-refundable credit — we prepare Form T661, tie claims to T2 filings, and defend documentation for CRA review.
SR&ED eligibility assessment
Technical and financial review to identify qualifying experimental development, basic research, and applied research activities.
35% CCPC refundable credit
Enhanced 35% federal investment tax credit calculated for CCPCs on the first $3 million of qualifying SR&ED expenditures.
Form T661 preparation
T661 Scientific Research and Experimental Development Expenditures Claim prepared with project descriptions and cost breakdowns.
CRA review and audit support
Contemporaneous documentation organized to support CRA SR&ED claim review, technical eligibility, and financial verification.
How It Works
Technical and financial discovery
Interview technical staff, review project records, and identify activities meeting SR&ED eligibility criteria under ITA Section 248(1).
Expenditure quantification
Calculate qualifying salaries, materials, subcontractor costs, and overhead proxy or traditional method amounts.
Form T661 and T2 integration
Prepare Form T661 with project descriptions, financial schedules, and integrate SR&ED credits into the T2 corporate return.
Filing and CRA review support
File SR&ED claim with T2 return and respond to CRA technical and financial reviewers during the claim review process.
Technical and financial discovery
Interview technical staff, review project records, and identify activities meeting SR&ED eligibility criteria under ITA Section 248(1).
Expenditure quantification
Calculate qualifying salaries, materials, subcontractor costs, and overhead proxy or traditional method amounts.
Form T661 and T2 integration
Prepare Form T661 with project descriptions, financial schedules, and integrate SR&ED credits into the T2 corporate return.
Filing and CRA review support
File SR&ED claim with T2 return and respond to CRA technical and financial reviewers during the claim review process.
Canada's SR&ED program provides investment tax credits for businesses conducting scientific research and experimental development — the largest single source of federal support for business R&D. CCPCs earn a refundable 35% federal credit on the first $3 million of qualifying SR&ED expenditures each year, providing cash refunds even when the corporation has no tax payable. Other corporations receive a 15% non-refundable federal credit, and provincial SR&ED credits (Ontario OITC, Quebec RS&DE) add further benefit. Qualifying work must advance scientific knowledge or technology through systematic investigation involving technical uncertainty — routine engineering, market research, and social science do not qualify. Form T661 must be filed within 18 months of the taxation year-end, attached to the T2 return, with detailed project descriptions and financial breakdowns. CRA reviews approximately 25% of SR&ED claims, examining both technical eligibility and financial accuracy, making contemporaneous documentation of hypotheses, experiments, and results essential. Proxy method overhead calculations (55% of eligible salaries) or traditional method actual overhead allocation are applied based on which maximizes the claim.
Common Questions
Provincial Tax Returns & Credits
Prepare provincial and territorial income tax schedules alongside federal T1 and T2 returns, ensuring correct provincial tax rates, surtaxes, and credits are applied. We handle Ontario surtax and health premium, Quebec abatement and separate Revenu Québec filings, BC renter's credit, and Alberta tax credits — maximizing provincial benefits available to your business or household.
Multi-province tax compliance
Provincial tax schedules prepared for Ontario, Quebec, BC, Alberta, and all other provinces and territories.
Provincial credit optimization
Ontario Trillium Benefit, BC climate action credit, Quebec solidarity credit, and other provincial credits claimed correctly.
Quebec separate filing support
Revenu Québec TP-1 personal and CO-17 corporate returns prepared where Quebec tax rules diverge from federal.
Cross-border provincial allocation
Income allocation across provinces for businesses operating in multiple jurisdictions with permanent establishment analysis.
How It Works
Residency and nexus review
Determine provincial tax residency, permanent establishment locations, and applicable provincial tax rates and credits.
Provincial schedule preparation
Complete provincial tax forms (Form 428 for individuals, provincial T2 schedules for corporations) with correct rates and credits.
Credit and benefit application
Apply provincial tax credits, property tax credits, rent credits, and determine eligibility for refundable benefit programs.
Filing and provincial authority submission
Submit provincial schedules with federal return or file separately with Revenu Québec where required.
Residency and nexus review
Determine provincial tax residency, permanent establishment locations, and applicable provincial tax rates and credits.
Provincial schedule preparation
Complete provincial tax forms (Form 428 for individuals, provincial T2 schedules for corporations) with correct rates and credits.
Credit and benefit application
Apply provincial tax credits, property tax credits, rent credits, and determine eligibility for refundable benefit programs.
Filing and provincial authority submission
Submit provincial schedules with federal return or file separately with Revenu Québec where required.
Canadian provincial and territorial governments levy income tax in addition to federal tax, with rates ranging from approximately 8% to 25.75% depending on jurisdiction and income level. Ontario applies a provincial surtax on high-income earners and an Ontario Health Premium on individual returns. Quebec operates a separate tax system administered by Revenu Québec — residents file TP-1 personal returns and corporations file CO-17 returns with distinct rules for deductions, credits, and capital gains. The Quebec abatement reduces federal tax payable by 16.5% for Quebec residents and corporations. Alberta has no provincial sales tax but levies provincial income tax at a flat rate. British Columbia, Manitoba, Saskatchewan, and the Atlantic provinces each have unique credit programs including renter's credits, property tax credits, and low-income supplements. Corporations allocate income across provinces using permanent establishment rules and provincial Schedule 5 (Tax Calculation Supplementary – Corporations). We ensure provincial tax integrates correctly with federal T1 and T2 filings and that refundable provincial credits flow through to the taxpayer.
Common Questions
Non-Resident Tax Returns (Section 216)
File Section 216 elective returns for non-residents receiving Canadian rental income, timber royalties, or certain pension income to recover excess Part XIII withholding tax. Non-residents are normally subject to 25% flat withholding on Canadian-source income — the Section 216 election allows taxation on net rental income at graduated rates instead.
Section 216 elective returns
Form T1159 and T776 prepared for non-residents electing to report Canadian rental income at net graduated rates.
Part XIII withholding recovery
Excess 25% Part XIII tax withheld on gross rent recovered by filing on net rental income after expenses.
NR4 and NR6 coordination
NR4 information slips reconciled and NR6 undertaking applications prepared to reduce monthly withholding to estimated net tax.
Treaty relief application
Canada tax treaty provisions applied to reduce withholding rates for residents of treaty countries on eligible income types.
How It Works
Residency and income classification
Confirm non-resident status, classify Canadian-source income types, and determine eligibility for Section 216 election.
Rental income and expense analysis
Prepare Form T776 Statement of Real Estate Rentals with allowable expenses, CCA, and net rental income calculation.
Section 216 return preparation
Prepare Form T1159 Income Tax Return for Electing Under Section 216 with provincial tax schedules if applicable.
Filing and refund coordination
File Section 216 return within two years of year-end and coordinate recovery of excess Part XIII withholding tax from CRA.
Residency and income classification
Confirm non-resident status, classify Canadian-source income types, and determine eligibility for Section 216 election.
Rental income and expense analysis
Prepare Form T776 Statement of Real Estate Rentals with allowable expenses, CCA, and net rental income calculation.
Section 216 return preparation
Prepare Form T1159 Income Tax Return for Electing Under Section 216 with provincial tax schedules if applicable.
Filing and refund coordination
File Section 216 return within two years of year-end and coordinate recovery of excess Part XIII withholding tax from CRA.
Non-residents of Canada earning Canadian-source income are generally subject to Part XIII tax — a flat 25% withholding on gross income paid or credited to them, collected by the Canadian payer and remitted to CRA. For rental income from Canadian real property, non-residents may elect under Section 216 of the Income Tax Act to file a Canadian return reporting net rental income taxed at graduated federal and provincial rates instead of the 25% gross withholding. The Section 216 return (Form T1159) must be filed within two years of the end of the taxation year to which it relates. Form T776 reports rental income and deductible expenses including mortgage interest, property taxes, insurance, repairs, and capital cost allowance. Non-residents can also file Form NR6 to request reduced monthly withholding based on estimated net tax rather than 25% of gross rent. Canada tax treaties with over 90 countries may further reduce withholding rates on dividends, interest, royalties, and pensions — treaty relief requires proper documentation including Certificate of Residence from the home country tax authority.
Common Questions
Capital Gains Tax Planning
Plan and report capital gains and losses on dispositions of capital property including shares, real estate, and business assets. We apply the 50% capital gains inclusion rate, lifetime capital gains exemption (LCGE) on qualified small business corporation shares and farm/fishing property, and superficial loss rules — minimizing tax on asset sales and corporate reorganizations.
Capital gains calculation
Adjusted cost base, proceeds of disposition, and outlays calculated for accurate capital gain or loss reporting on Schedule 3.
Lifetime capital gains exemption
LCGE of $1,016,836 (2024) applied to gains on qualified small business corporation shares and qualified farm or fishing property.
Pre-sale planning and structuring
Asset sale timing, estate freezes, and butterfly reorganizations structured to maximize LCGE and minimize overall tax.
Superficial loss and stop-loss rules
Loss trading restrictions analyzed to ensure capital losses are deductible and not denied under ITA Section 54 and 40.
How It Works
Asset review and cost base analysis
Identify capital property, establish adjusted cost base (ACB), and review prior dispositions and loss carryforwards on Schedule 3.
Tax planning and structuring
Model tax outcomes of proposed dispositions, LCGE eligibility, and corporate versus personal sale alternatives.
Return preparation and reporting
Report capital gains and losses on Schedule 3 of the T1 return or integrate into T2 for corporate dispositions.
Post-disposition compliance
File required elections, coordinate with purchaser on compliance certificates (Section 116 for non-resident buyers), and update ACB records.
Asset review and cost base analysis
Identify capital property, establish adjusted cost base (ACB), and review prior dispositions and loss carryforwards on Schedule 3.
Tax planning and structuring
Model tax outcomes of proposed dispositions, LCGE eligibility, and corporate versus personal sale alternatives.
Return preparation and reporting
Report capital gains and losses on Schedule 3 of the T1 return or integrate into T2 for corporate dispositions.
Post-disposition compliance
File required elections, coordinate with purchaser on compliance certificates (Section 116 for non-resident buyers), and update ACB records.
Capital gains in Canada are taxed at 50% of the inclusion rate — meaning only half of a capital gain is included in taxable income. Capital losses can offset capital gains in the current year and be carried back three years or forward indefinitely. The lifetime capital gains exemption (LCGE) shelters up to $1,016,836 (2024 indexed amount) of gains on qualified small business corporation (QSBC) shares and qualified farm or fishing property from tax entirely. QSBC shares must meet asset and holding period tests — at least 90% of corporate assets must be used in an active business in Canada at the time of sale, and the shares must be held for at least 24 months. Superficial loss rules deny capital losses when identical property is repurchased within 30 days before or after the disposition. Real estate dispositions by non-residents require Section 116 compliance certificates. Principal residence exemption eliminates capital gains tax on the sale of a qualifying home for each year it was the taxpayer's principal residence. We coordinate capital gains planning with estate freezes, intergenerational transfers, and corporate reorganizations under Sections 85 and 86 rollovers.
Common Questions
Trust & Estate Tax Returns (T3)
Prepare and file T3 Trust Income Tax and Information Returns for testamentary trusts, inter vivos trusts, and estates administering deceased taxpayers' affairs. We allocate trust income to beneficiaries via T3 slips, manage the 21-year deemed disposition rule, and coordinate T3 filing with T1 final returns for deceased individuals.
T3 trust return preparation
T3 return with Schedule 9 and T3 Summary prepared for testamentary, inter vivos, and graduated rate estate trusts.
Beneficiary T3 slip allocation
Trust income allocated and reported to beneficiaries on T3 slips for inclusion on their personal T1 returns.
90-day filing deadline
T3 return due 90 days after the trust's taxation year-end with same deadline for balance-due payment.
21-year rule planning
Deemed disposition at fair market value planned before the 21-year anniversary to manage capital gains exposure.
How It Works
Trust classification and review
Determine trust type (testamentary, inter vivos, GRE, QDT), taxation year-end, and beneficiary entitlement under the trust deed.
Income calculation and allocation
Calculate net trust income, determine allocable amounts to beneficiaries, and prepare T3 slips for each beneficiary.
T3 return preparation
Prepare T3 Trust Income Tax and Information Return with Schedule 9, capital gains schedules, and trust financial statements.
Filing and beneficiary coordination
File T3 with CRA within 90 days of year-end, issue T3 slips to beneficiaries, and coordinate with estate T1 final return if applicable.
Trust classification and review
Determine trust type (testamentary, inter vivos, GRE, QDT), taxation year-end, and beneficiary entitlement under the trust deed.
Income calculation and allocation
Calculate net trust income, determine allocable amounts to beneficiaries, and prepare T3 slips for each beneficiary.
T3 return preparation
Prepare T3 Trust Income Tax and Information Return with Schedule 9, capital gains schedules, and trust financial statements.
Filing and beneficiary coordination
File T3 with CRA within 90 days of year-end, issue T3 slips to beneficiaries, and coordinate with estate T1 final return if applicable.
Trusts and estates file a T3 Trust Income Tax and Information Return within 90 days of the trust's taxation year-end — unlike the six-month deadline for T2 corporate returns. Trust income retained in the trust is taxed at the top marginal rate, while income allocated and paid to beneficiaries is deducted by the trust and taxed in the beneficiaries' hands at their marginal rates via T3 slips. Graduated Rate Estates (GREs) created on death benefit from graduated tax rates for up to 36 months. The 21-year deemed disposition rule triggers a capital gains crystallization on trust property every 21 years at fair market value, making long-term trust planning essential. Testamentary trusts created by will have different tax treatment than inter vivos trusts established during the settlor's lifetime — inter vivos trusts are generally subject to the highest marginal rate on all retained income since 2016. We coordinate T3 filings with the T1 final return (Form T1-ADJ) for deceased taxpayers, clearance certificates under Section 159, and estate administration tax (probate fees) obligations at the provincial level.
Common Questions
CRA Audit Support & Notice Responses
Respond to CRA audits, reassessments, Notices of Assessment discrepancies, and compliance letters with structured representation and documentation. We prepare Notice of Objection filings under Section 165 within the 90-day deadline, manage CRA auditor requests, and escalate unresolved disputes to the Tax Court of Canada when warranted.
CRA audit representation
Full representation during CRA desk audits and field audits with organized documentation and technical responses.
Section 165 Notice of Objection
Formal objections filed within 90 days of the Notice of Assessment or reassessment date with legal arguments and evidence.
Tax Court escalation
Appeals to the Tax Court of Canada prepared when CRA Appeals Division does not resolve the objection favourably.
Deadline and penalty management
Objection and appeal deadlines tracked to preserve rights while managing interest on disputed amounts during review.
How It Works
Notice review and assessment analysis
Review CRA Notice of Assessment, reassessment, or audit letter to identify disputed items, amounts, and applicable deadlines.
Documentation and response preparation
Gather supporting records, prepare technical submissions, and respond to CRA auditor information requests within prescribed timelines.
Notice of Objection filing
File formal Notice of Objection under Section 165 within 90 days of the NOA date with detailed grounds and supporting evidence.
Appeals and Tax Court representation
Represent client through CRA Appeals Division review and, if necessary, file appeal to the Tax Court of Canada within 90 days of the Appeals decision.
Notice review and assessment analysis
Review CRA Notice of Assessment, reassessment, or audit letter to identify disputed items, amounts, and applicable deadlines.
Documentation and response preparation
Gather supporting records, prepare technical submissions, and respond to CRA auditor information requests within prescribed timelines.
Notice of Objection filing
File formal Notice of Objection under Section 165 within 90 days of the NOA date with detailed grounds and supporting evidence.
Appeals and Tax Court representation
Represent client through CRA Appeals Division review and, if necessary, file appeal to the Tax Court of Canada within 90 days of the Appeals decision.
CRA routinely audits individual T1 returns, corporate T2 returns, GST/HST accounts, payroll remittances, and SR&ED claims. When CRA disagrees with a filed return, it issues a Notice of Reassessment adjusting income, credits, or deductions — taxpayers have 90 days from the Notice of Assessment date to file a Notice of Objection under Section 165 of the Income Tax Act. The objection is reviewed by the CRA Appeals Division, an independent branch within CRA, which may confirm, vary, or vacate the reassessment. If the Appeals decision is unsatisfactory, taxpayers may appeal to the Tax Court of Canada within 90 days — the Tax Court is the first independent judicial forum for tax disputes. Informal procedures are available for disputes under $25,000, while general procedures apply to larger amounts with full discovery and trial. During audit and objection periods, interest continues to accrue on disputed tax amounts unless CRA agrees to a hold on collection. We manage the full dispute lifecycle from initial audit contact through objection, Appeals review, and Tax Court representation, preserving your rights at every stage.
Common Questions
Frequently Asked Questions
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