By Grant Gilmour
In Canada the “prescribed form” for filing federal corporate taxes is called a T2 return. It is the same form for all resident and non-resident corporations subject to Canadian tax. The attachments and the calculations change depending on the situation.
The T2 Jacket, as we call it, is actually named that for a reason. Years ago, the loose papers of the detailed tax calculations were collected in a loose leaf binder of sorts called a jacket. The jacket was on an 11 by 17 sheet of paper folded in half with the basic identity information on it and summary information from the loose schedules.
The jacket also had an index of all the attachments. The representative of the company would sign the back of the jacket and submit it to the Canada Revenue Agency (CRA). Things have changed a bit over the years. The jacket is now so full of information that it would not fit on an 11 by 17 sheet. It takes 8 or 9 regular 8.5 by 11 sheets of paper these days.
The schedules have also gotten so numerous that they would fall out of the loose jacket. So these days we print a little book of schedules and the “jacket” goes at the front. As the CRA has gone electronic, that little book is now back to a couple pages of bar codes that gets electronically submitted in most cases. Some provinces, like Alberta, have similar forms to the T2 jacket and they duplicate many of the calculations and almost all of the information on the T2 federal return. Most of the provinces’ tax calculations are just schedules that are part of the federal return. They are additional schedules that are attached to the T2 return.
Besides recommending that you keep any of the tax returns you have (as a manual back-up in case the CRA computers fail) we also recommend that you contact us at Gilmour Knotts Chartered Professional Accountants for more guidance on how the T2 return works and how to understand it.
Grant Gilmour B.SC. MBA, CPA, CA is the International Tax Partner of Gilmour Knotts Chartered Accountant. To connect with Grant visit: www.gilmour.ca
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By Grant Gilmour