Taxes are part of any business. Any business, whether it is a small business or a corporation, should take time to understand and evaluate the tax liability of their company. Corporations need to deal with corporation tax which is basically the company’s taxable profit. The tax return of a company involves a completed Corporation Tax Return along with their annual financial accounts and documents that supports the tax calculation.
It is a mandate that all companies maintain some form of records regarding their company’s financial transactions in order for the company to be able to produce accurate Company Tax Return. It is the responsibility of every company to compute and calculate their own corporate tax liability and paying it without prior assessment from their country’s revenue service. A corporation who fails to deliver tax return on their filing date is liable to penalties. An accounting period is 12 months. The filing of tax returns can be shorter than 12 months, but never longer.
The tax responsibility of any company or corporation includes profits coming from taxable income, capital gains, and investment profits. It does not matter whether you sell goods or provide services. You are responsible for paying the necessary taxes.
A Calgary Corporate Tax Accountant should be able to handle the corporation tax for you. The accountants or accounting firm you hire will ensure that the right amount of tax due is paid accordingly. Additionally, it is necessary that deadlines are met and that your accountant must know when these deadlines are. Your accountant is not responsible in reminding you when the deadline is. It is up to you to keep check and follow up on when the deadline is to avoid any type of penalties that may be incurred from late filling. Under corporation tax, you pay first before you file and not the other way around.
To ensure that all your taxes are handled properly, make sure that you are aware of the deadlines. You also should have an idea of this so you can get the necessary information to your accountant. After all, they will be able to do their job properly if you provide them with more accurate information. You should provide your accountant when the taxes needs to be paid and filed so they can acquire the necessary information from you regarding profits, chargeable gains, capital allowances, deductions, losses, allowances, and reliefs so they can properly arrange your tax liabilities. Working properly with your accountant helps in ensuring your tax liability is handled properly.