Corporate Tax Preparation

Corporate Tax Preparation provided by Lowe CPA Inc., typically involves a Compilation Engagement where financial statements, corporate tax returns and elections are prepared based on information provided by the client. While Compilation Engagements do not offer assurance on the accuracy of these statements, they play a crucial role in organizing and presenting financial data clearly for businesses and individuals at a more accessible cost in comparison to Review or Audit engagements. The process is comprised of:

  • Data Collection: Gathering all financial records from the client, including bank statements, invoices, receipts, and other relevant financial documents from the client or authorized third party representatives (legal or banking representatives).

  • Checking for Reasonable Presentation: Lowe CPA Inc. ensures that the information is presented in a format that adheres to standard accounting principles and that the figures are logically consistent without the implementation of detailed auditing or reviews.

  • Financial Statement Preparation: Compiling the data into a coherent set of financial statements compliant with CSRS 4200 standards, such as balance sheets, and income statements, which reflect the financial position of the business. By adhering to CSRS 4200 standards, the result is clear, easy-to-understand financial statements for business owners, lenders, or other stakeholders who need a snapshot of the business’s finances.

  • Tax Deduction & Credit Identification: Identifying eligible tax deductions and credits, such as those for capital cost allowance, R&D investments, loss carry-forwards, and eligible business expenses. This helps reduce the company's overall tax liability.

  • Preparation of T2 Corporate Tax Return: Preparing and filing the T2 corporate tax return, ensuring that all income, deductions, credits, and tax installments are properly reported to the Canada Revenue Agency (CRA) for federal and provincial tax purposes.

  • Tax Planning & Optimization: Providing strategic tax planning advice, helping businesses structure their operations for tax efficiency. This may involve optimizing the timing of income recognition, deferring tax liabilities, or advising on the most advantageous corporate structure.

  • HST/GST and Payroll Compliance: If applicable, Lowe CPA Inc. can prepare and file the company's HST/GST returns and ensures payroll taxes are properly accounted for where requested, avoiding any late penalties or interest.

  • Handling CRA Correspondence: Lowe CPA Inc. can assist with any CRA inquiries, audits, or requests for additional information, ensuring the company responds accurately and promptly.

  • Advisory on Future Tax Strategies: Beyond tax filing, Lowe CPA Inc. can offer ongoing advisory services to help businesses plan for future tax obligations, reduce tax burdens, and maintain healthy cash flow.

  • Advisory on Improvements: If any inefficiencies or discrepancies are identified in the record-keeping process, Lowe CPA Inc. can offer advice on improving the financial management systems.

This service is especially suitable for small to medium-sized businesses that need professional financial statements but do not require the level of assurance and complexity that come with audits or reviews.