Corporate & Personal Taxation
Personal (T1) Preparation and Filing
We serve a variety of individuals, from students, full/part time workers to seniors and new immigrants living in Canada with their tax preparation and filing. We work hard to ensure that the needs of each of our clients are met.
Tax planning is recommended because of particularly under a Canadian income tax system which incorporates a progressive rate schedule with rules that allow or disallow specific transactions and courses of action. Consequently, the good taxation plan can minimize your tax payable.
New federal and provincial laws and policies are constantly being introduced; these often have a direct effect on specific tax strategies, because new opportunities may arise and old approaches may no longer be appropriate or valid as a result. It is, therefore, incumbent upon taxpayers to remain aware of contemporary tax rules that are applicable to specific actions being contemplated.
The objective of personal tax planning is to minimize or defer income taxes payable, for taxpayers to organize their financial/taxation affairs in the most beneficial way possible within legal boundaries. This requires a thorough understanding of Canada’s Income Tax Act, plus bulletins, circulars and rulings put forth by the Canada Revenue Agency (CRA), along with other events such as tax rulings in the courts.
For these reasons, it is also a good idea to review any tax-planning proposals with HJ Wu & Company Inc. - your Certified General Accountant (CGA).
Corporate (T2) Preparation and Filing
A significant task for any business is assuring that the business is properly complying with the extensive tax and information filing requirements imposed by various governmental agencies. Stiff penalties are commonly assessed if the required forms and returns are not properly prepared and filed on a timely basis.
At HJ Wu & Company Inc., we work to ensure that your tax returns are prepared accurately, properly, efficiently, and are filed on time. We look for opportunities and strategies to minimize your tax liability by taking advantage of existing and new tax laws. We work with our clients to ensure that a proper tax plan is in place to help maximize their profitability and help their business prosper.
We prepare all required schedules and documentations for corporate income tax return filings including preparation of financial statements, filing of corporate federal T2 tax returns and attachments, provincial tax returns and attachments.
Business Tax Planning
Tax planning is not a one-time event right before the return is due. Tax planning is a year-round endeavour requiring communication between you and our firm. Proper planning ensures that there are no surprises when the return is filed.
Income tax laws are quite complicated and constantly changing. Proper tax planning can result in significant tax savings and deferrals. This will free up working capital to help ensure the success of your business.
Each type of legal entity is required to file a different type of income tax form.
- A corporation must file a T2 Corporate Income Tax Return on an annual basis. Financial statements should be compiled by a certified accountant and attached to the return.
- The information must also be entered into the General Index of Financial Information (“GIFI”) as required by Canada Revenue Agency ("CRA").
- On January 1, 2011, new filing criteria for the Partnership Information Return will come into effect. The new filing criteria will apply to partnerships with fiscal periods ending on or after January 1, 2011. For partnerships with fiscal periods ending on or before December 31, 2010, the current criteria still apply.
- A partnership is not a taxable entity. In general, a partner files an income tax return to report his or her share of the partnership's net income or loss. The partnership is required to prepare financial statements for this purpose. Form T2125 (Statement of Business or Professional Activities), is use to report the business income.
- There are other filing rules depending on the type of partnerships.
- A sole proprietorship should report its business or professional activities for the calendar year on Form T2125. This form should be filed with the proprietor’s personal (T1) income tax return for the year.
At HJ Wu & Company Inc., we help you navigate the maze of tax laws and provide the financial advice you need to manage and grow your business.