Course introduction
Corporate Income Tax returns T2 Preparation Course (Starter) bridges the gap between theory and the practical world.
Starting with the recap of the theory you may have already studied, we walk you through the complete process of a corporate tax return, explaining different tax forms and schedules. Finally, actual data is used to prepare mock corporate tax returns.
Corporate tax returns are different than the reporting of business income on T1 (unincorporated business). The participants must know how the bookkeeping process works and should be able to generate Balance Sheet and Income Statements.
This course will focus on Canadian Controlled Private Corporations (CCPCs).
course details
Course Delivery Method:
In-Person & face-to-face
Course Trainer:
Maroof H. Sabriel, CPA, CA.
Duration and Dates:
September to October every year. 5 weeks with 2 hrs sessions each Saturday. The total number of in-person hours is 10hrs.
The next course starting date is August 26, 2023.
Registration Closed Now
Venue:
202-1200 Bay Street, Downtown Toronto ON M5R 2A5*.
*Venue is subject to change depending on the number of registrations (within the Downtown core).
Course Fee:
$1,700/- + HST.
If you have promo codes, please use them at the time of registration.
Who should attend?
Corporate income tax return preparation, the starter course is suitable for those who plan to add corporate taxes to their practices.
- You are a fresh graduate out of school with an accounting major and want to start a career in the tax preparation business.
- You are a tax preparer who prepares individual income tax returns and now want to start preparing corporate taxes.
- You are a bookkeeper who prepares files for other tax accountants.
- You are a newcomer to Canada with good tax background and want to continue working in the tax profession. You must understand how the tax system works (at least at the individual level) in Canadaeas one needs to know. Therefore this course is not a vocational training course.
Those who are already practicing as corporate tax preparers can explore our featured courses in the ‘Select Advanced’ category or mix and match other short courses.
Caution: Pre-Requisites
Corporate income tax return preparation requires sound bookkeeping and accounting knowledge. The participants must know what are the financial statements, i.e. Balance Sheet and Income Statement and how to make adjustments to them.
As a part of the course, we can look at some of the adjustments, however, the preparation of Balance Sheet and Income Statement is not a part of this training course.
KEY TOPICS
Key topics covered are:
- Corporate taxes in Canada
- Concept of Integration, and relationship between Individual and Corporate taxes
- Corporation types for tax purposes – Introductory only, focus is CCPC.
- The small business deduction, Active Business Income (ABI) Vs Investment income
- Corporate deductions and credits
- T2 Corporate income tax return, GIFI and common schedules
- Schedule 1 – Calculating taxable income
- Preparation of mock tax return for a CCPC with ABI
- Preparation of tax return for a CCPC with ABI & Investment Income
- Remuneration of owner-manager
- Incorporating Tax planning with Tax preparation
- Common mistakes to avoid and the best practices
Learning Outcome Statements
After completing this Corporate tax training course, participants should be able to:
- Understand the critical concept of integration between Personal and Corporate income taxes in Canada.
- Understand and differentiate between different types of Corporations for tax purposes. The focus is on the CCPC, however, the participants should be able to identify the instances when the corporation type changes and how to complete corporate tax returns in those transition periods.
- Understand Active business income (ABI), small business deduction (SBD) in detail, and situations when the SBD is changed. For example, with investment income or personal services business.
- Understand the difference between different tax forms and schedules. An overview of GIFI and how the data from the client’s books be converted to GIFI. A small number of accounting adjustments to correct obvious errors on books.
- Comfortably prepare T2 for CCPCs after practicing 3 mock corporate tax returns during the training sessions and set another 5 corporate tax returns in correspondence.
- Analyze the different ways to pay owner-manager such as salaries, dividends, bonuses and management fees.
- Optimize corporate tax returns together with personal taxes, and incorporate tax planning for both owners and the corporations.
- Identify the situations where additional reporting is required and further complexities get involved so that adverse tax consequences are avoided.
- Avoid the common mistakes tax preparers make while making corporate tax returns for small businesses.
This is a fast-paced starter course. Some of the topics mentioned may need advanced training, however, the objective of this course is to enable tax preparers to complete corporate tax returns for small businesses.
