Corporate Tax
Filing & Strategy.
Beyond simply filing your T2 return, we implement proactive tax strategies that keep more capital inside your business while ensuring bulletproof CRA compliance.
Stop Overpaying the CRA
Filing your corporate tax return (T2) is a mandatory compliance requirement, but how you file it determines how much capital you retain to grow your business. Many businesses overpay their taxes simply because their accountants are reactive—only looking at the numbers after the year has ended.
At Teixeira Accounting, we take a proactive approach. We review your financial position before your year-end to identify deductions, credits, and structuring opportunities that minimize your corporate tax liability. The Canadian tax code is incredibly complex, but within that complexity lies opportunity. Our job is to navigate the Income Tax Act (ITA) to ensure you pay exactly what you legally owe—and not a single penny more.
Corporate Tax Savings Estimator
See how much you could save by utilizing the Small Business Deduction (SBD) compared to personal tax rates.
*Estimates are for illustrative purposes using simplified 2025 rates. Actual tax liability depends on various factors including non-business income, associated corporations, and exact provincial brackets.
This tool is for general information only and does not replace professional tax or accounting advice.
The True Cost of Reactive Accounting
If your current accountant only contacts you in March to ask for your Quickbooks file, you are likely leaving money on the table. Tax planning cannot happen retroactively. Once your fiscal year ends, the window for implementing the most effective tax-saving strategies slams shut.
Reactive accounting leads to:
- Missed Deductions: Failing to properly accrue expenses or maximize Capital Cost Allowance (CCA) before year-end.
- Suboptimal Remuneration: Pulling money out of the corporation inefficiently, resulting in higher personal tax brackets.
- Cash Flow Surprises: Finding out you owe a massive tax bill with only weeks to pay, straining working capital.
- Audit Vulnerability: Rushed returns often contain errors or aggressive positions that lack proper documentation, triggering CRA scrutiny.
Comprehensive Corporate Tax Services
Our corporate tax services go far beyond filling out forms. We provide an end-to-end tax compliance and advisory solution designed to protect your wealth.
T2 Return Preparation & Filing
Accurate, timely preparation of your federal and provincial corporate tax returns. We handle the complex schedules, ensure all carry-forwards are applied correctly, and file electronically to expedite processing.
Tax Minimization Strategy
Optimizing the Small Business Deduction (SBD), managing passive income rules to protect your SBD limit, and maximizing eligible tax credits like SR&ED and the Ontario Innovation Tax Credit.
Owner Remuneration Planning
Determining the optimal mix of salary versus dividends to minimize your combined corporate and personal tax burden. We analyze your RRSP room, CPP contributions, and personal cash flow needs to design the perfect extraction strategy.
CRA Audit Defense & Correspondence
We act as your shield against the CRA. If your corporation is selected for a desk review or a full audit, we handle all communication, supply the necessary documentation, and defend the tax positions taken on your return.
Navigating Complex Tax Rules
Canadian corporate tax is fraught with traps for the unwary. As your business grows, you will encounter complex legislation designed to prevent perceived tax avoidance. We guide you safely through these minefields.
The Passive Income Rules
If your corporation earns too much passive investment income (interest, dividends, rental income, royalties), the CRA will grind down your Small Business Deduction limit. Once your passive income exceeds $50,000, your SBD limit is reduced by $5 for every $1 of passive income, completely eliminating your SBD at $150,000 of passive income. We deploy strategies—such as individual pension plans (IPPs) or specialized corporate-owned life insurance—to manage this passive income and protect your low tax rate.
Tax on Split Income (TOSI)
The days of simply paying dividends to a spouse or adult children in lower tax brackets are largely over. The TOSI rules mean that unless family members meet strict exemption criteria (like working 20+ hours a week in the business or owning 10%+ of the votes and value in a non-services business), those dividends will be taxed at the highest marginal rate. We review your shareholding structure to ensure compliance and identify legitimate income-sprinkling opportunities.
Industry-Specific Tax Optimization
Different industries face different tax realities. We tailor our corporate tax strategies to your specific sector:
Medical Professionals
Optimizing Professional Corporations (PCs) for doctors and dentists to maximize wealth extraction, navigate the complex rules around holding companies for PCs, and manage the passive income grind.
Real Estate & Construction
Navigating complex project accounting, holdbacks, capitalizing costs vs. expensing, and structuring joint ventures to defer tax on property development.
Tech Startups
Maximizing SR&ED tax credits, structuring stock options and equity compensation, and managing the tax implications of SAFE notes and convertible debt.
E-Commerce & Retail
Managing inventory valuation methods, multi-provincial sales tax compliance, and optimizing cross-border tax issues for Amazon FBA and Shopify sellers.
Our Tax Filing Process
- Pre-Year End Review: We meet 45-60 days before your fiscal year-end to project your income and implement tax-saving strategies.
- Data Collection & Reconciliations: We finalize your bookkeeping, reconcile all accounts, and prepare trial balances.
- Drafting & Optimization: We prepare the draft T2 return and financial statements, applying all available deductions and credits.
- Review & Approval: We walk you through the return, explaining exactly what you owe, why you owe it, and how we minimized it.
- Filing & Monitoring: We electronically file the return, provide you with payment vouchers, and monitor your CRA My Business Account for the Notice of Assessment.
Why Choose Teixeira Accounting?
At Teixeira Accounting Firm Inc., we don't just record history; we write your financial future. Most accounting firms are reactive—they wait for you to bring them problems. We are proactive architects of your wealth and business growth.
Whether you're a scaling enterprise or a high-net-worth individual, we provide the strategic oversight, tax optimization, and bulletproof compliance you need to operate with absolute confidence.
The Teixeira Advantage
Proactive Tax Strategy
We don't just file your taxes; we actively look for ways to reduce your tax burden year-round.
Bulletproof Compliance
Our rigorous quality control ensures your filings are accurate, minimizing audit risk.
Dedicated Advisory
You get a dedicated partner who understands your business deeply, not just a once-a-year tax preparer.
Ready to Optimize Your Corporate Taxes?
Don't wait until tax season. Partner with Teixeira Accounting for year-round proactive tax strategy.
Book Your Consultation