Large corporations

A large corporation has to file:

  • T2 Corporation Income Tax Return; and, if applicable
  • Schedule 38, Part VI Tax on Capital of Financial Institutions

If a corporation fails to file these returns, a penalty will be charged for each complete month that the returns are late, up to a maximum of 40 months. The penalty will be calculated as follows:

  • 0.0005% of the corporation's taxable capital employed in Canada at the end of tax year
  • 0.25% of the Part VI tax payable by the corporation (before the deductions in subsection 190.1(3))

A corporation has to identify itself as a large corporation by answering yes to the question at line 233 on page 2 of the T2 return.

Note

A corporation is a large corporation if the total taxable capital employed in Canada at the end of the tax year by it and its related corporations is over $10 million.

To determine if the total taxable capital employed in Canada of the corporation and its related corporations is greater than $10,000,000, you can use whichever of the following schedules that applies:

  • Schedule 33, Taxable Capital Employed in Canada – Large Corporations
  • Schedule 34, Taxable Capital Employed in Canada – Financial Institutions
  • Schedule 35, Taxable Capital Employed in Canada – Large Insurance Corporations

A corporation with a permanent establishment in Newfoundland and Labrador that is a financial institution, as defined under provincial legislation, has to file Schedule 305, Newfoundland and Labrador Capital Tax on Financial Institutions.

Reference
Section 235 of the Income Tax Act

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