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Entrust Accounting & Advisory Services

TAX PREPARATION

Tax Preparation is the process of preparing and filing of personal or corporate tax returns.

Tax Preparation focuses on:

  1. Collection of information slips such as T4's, T3's and T5's.

  2. Preparation of schedules.

  3. Review with the client and signoff.

  4. E-file of tax return to CRA.

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In Canada, every individual, corporation, partnership, or separate legal entity considered a resident is obligated to file and pay taxes. A resident is typically defined as someone residing in Canada for 183 days or more, a member of the Canadian Forces, or a servant of Canada or a Province. However, there are additional definitions, so it's advisable to consult a CPA for specific circumstances. For individuals with income from an office or employment, the T1 form is commonly used, while corporations utilize the T2 form. All corporations must file a T2 return each taxation year, regardless of tax payable, except for registered charities, which are exempt. For any inquiries about your situation, it's recommended to seek guidance from a CPA.

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Tax Preparation for small businesses

PERSONAL TAXES (T1)

There are various levels of complexity when filing T1 tax returns for individuals who have income from ‘(public) office or employment’, or income from ‘business and property’.
Individual tax return for income from an ‘office or employment’

  1. Basic T1 returns are where "information slips" are issued from an institution. Includes T2202, T3, T4's, T5's, and T5013

  2. More complex T1 returns may included information slips, but also include schedules required to be filled out in support of:

    1. Tax on Split Income for business where family members are actively involved

    2. Foreign income

    3. Capital Gains or Losses

    4. Multiple residences

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Individual tax return with income from a ‘business or property’

  1. May include income from ‘business and property’, plus

  2.  Business (unincorporated) income which includes a profession, trade, manufacture or undertaking of any kind whatever

  3. Property income which is widely defined and includes income from any property that can create capital gains or losses when you dispose of it

  4. Returns that include T2125 Business Activities

  5. Returns that include Rental Income T776's


CORPORATE TAXES (T2)

Tax returns for corporations

  1. Small business – compiled financial statements provided

  2. Small business – compiled financial statements required to be compiled

  3. Non-small business - compiled financial statements provided

  4. Non-small business – compiled financial statements required to be compiled


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TAX PREPARATION

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