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Create a T2 return

SOLVEDby IntuitUpdated 1 year ago

Before you begin…

The information provided on this page provides general guidance only. ProFile and its support agents cannot provide any tax-related advice or opinion.

We recommend reviewing the CRA website and contacting their tax inquiries line, or consulting an accredited CPA firm for information regarding current tax laws, as well as having any return prepared or reviewed by a professional accountant before filing.

Before starting a T2 return, we recommend reviewing the CRA's T2 "Before you start" guide (a PDF version of the guide is available here).

The CRA's guide covers most T2-related topics, including who has to file a T2 return, when it must be filed, and when and how to corporations pay income tax.

For the best possible experience, assemble the following information and materials prior to undertaking the T2 return:

  • Prior-year financial statements and T2 return, if applicable
  • Articles of incorporation
  • A list of products and services provided in percentages
  • Backup electronic copies of applicable bookkeeping (for example, QuickBooks, Simply accounting, MS Excel, etc.), trial balance sheet, income statement, general ledger, credit card and bank statements of the last month of the corporation year
  • Corporate installment payments made during the year
  • A copy of prior years' Notice of Assessment (NOA)
  • Correspondence with any government relating to the corporation
  • A list of changes to the corporation from last year (e.g., new director, shareholders, new assets, etc.)
  • The business number of the corporation (review the incorporation documents or prior-year return)
  • The address of corporation, including head office, mailing and location of books, if applicable (you can review the CRA My Account feature for this information)
  • The fiscal year-end date of company
  • Carryforward the return in ProFile of the prior year corporation return, if available
  • A signed RC59 form to acquire access to the client’s business information through the CRA

ProFile recommends that preparers follow the instructions here to acquire full online authorization using the CRA's Represent a Client function.

The following schedules may need to be completed for a T2 Return:

  • Import GIFIs to complete Schedule 100 and 125; ensure the balance sheet balances correctly. If this is a new client, review in the accounting software to confirm if the chart of accounts has the correct GIFIs assigned to them.
  • Complete Schedule 101 for a first-year corporation filing; complete Schedule 24 if applicable and review lines 70-72.
  • Complete Schedule 50 (shareholder information)
  • Complete Schedule 8 (CCA of physical assets)
  • Complete Schedule 3 (did the corporation issue a dividend to shareholders or receive dividends?)
  • Complete Schedule 2 (if the corporation made charitable donations)
  • Complete Schedule 11 (did the shareholder receive or make a loan to the corporation?)
  • Complete RACDetails (if the corporation is related to or associated with another corporation). Review related forms identified on the RACDetails form (for example, Schedule 9, 23, 49, etc.)

Note: It is necessary to undertake QuickBooks integration prior to importing GIFI from QuickBooks Desktop.

The General Index of Financial Information (GIFI) is a comprehensive list of financial statement items where each item has a unique code. It allows a corporation to report its unique combination of accounts to the CRA.

  1. Open a T2 return in ProFile.
  2. Ensure that the ProFile T2 taxation year matches the corresponding year entered in QuickBooks.
  3. Select the Yes option for the question Complete return from GIFI? in the Filing section of the ProFile T2 return.
  4. Select the QuickBooks Desktop Import… option from the File drop-down menu in the top toolbar.
  5. Set the Year start and Year end values in the GIFI Data Import window.
  6. Click the Continue button.
  7. Review the amounts being imported from QuickBooks to ProFile.
  8. If correct, click the Import button.

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