What Documents Do You Need for Corporate Tax Filing?

Start With Records That Explain the Corporate Financial Year

A corporate tax return is built from the corporation's accounting records. Before tax preparation starts, the records should provide a clear picture of income, expenses, assets, liabilities, shareholder activity, and other significant transactions during the fiscal year.

The exact document list depends on the corporation. A simple consulting company may have fewer records than a corporation with employees, inventory, equipment, multiple bank accounts, investments, financing, or rental property.

• General Ledger: Detailed accounting activity for the fiscal year.
• Trial Balance: Year-end account balances used to prepare financial and tax information.
• Financial Statements: Available balance-sheet, income-statement, and retained- earnings information.
• Bank Reconciliations: Records supporting corporate cash balances.
• Tax Records: Prior corporate returns, notices, installments, and relevant CRA correspondence.

If the corporation's books are behind, review Bookkeeping Cleanup Services before leaving the cleanup until the filing deadline.

Financial Statements and GIFI Information

Corporate tax preparation uses financial information from the corporation's accounting records. T2 filings can include financial-statement information reported through the General Index of Financial Information, commonly called GIFI.

Useful year-end financial information typically includes:

• Balance Sheet: Corporate assets, liabilities, and equity at year-end.
• Income Statement: Revenue and expenses for the fiscal period.
• Retained Earnings Information: Changes in accumulated corporate earnings.
• Trial Balance: Detailed year-end account balances supporting the statements.

Additional reports may also be useful depending on the corporation, but there is no need to assume every company must produce the same set of internal management reports before a T2 return can be prepared.

Bank and Credit Card Statements

Gather statements for every corporate bank account and credit card used during the fiscal year.

The bookkeeping balances should be reconciled to the financial institution records. Statements immediately following year-end can also be useful when there are outstanding cheques, deposits in transit, or transactions that need to be traced across the year-end date.

• Business chequing accounts
• Business savings accounts
• Corporate credit cards
• Foreign-currency accounts where applicable
• Payment-processor balances where relevant
• Bank reconciliation reports

Sales Invoices and Revenue Records

Corporate revenue should be supported by records showing what was sold, when revenue was earned, how customers were billed, and how payments were received.

Depending on the business, useful records may include:

• Customer invoices
• Sales reports
• Point-of-sale reports
• E-commerce platform reports
• Payment processor statements
• Accounts receivable reports
• Customer deposits or deferred revenue records

Receipts, Vendor Invoices and Expense Support

Corporate expenses should be supported by records that explain the supplier, amount, date, applicable taxes, and business purpose.

Organizing expense documents before tax preparation can reduce the amount of follow-up required when an accountant reviews unusual or material transactions.

• Vendor invoices
• Purchase receipts
• Professional service invoices
• Advertising expenses
• Travel records
• Utilities and communications expenses
• Subscriptions and software costs
• Repair and maintenance invoices

Payroll Records, T4 Information and Employee Costs

Corporations with employees should provide payroll information that can be reconciled to the bookkeeping and payroll accounts.

Records may include:

• Payroll registers
• T4 slips and T4 summary information
• Payroll remittance records
• Employee benefit costs
• Bonuses and commissions
• Vacation pay records
• Year-end payroll adjustments

Payroll amounts in the accounting system should agree with the supporting payroll records before corporate year-end work is finalized.

Dividend and Shareholder Payment Records

If the corporation paid dividends or made other payments to shareholders, gather the records supporting those transactions.

Depending on the transaction, this may include:

• Dividend records
• Applicable T5 information
• Corporate resolutions or supporting records
• Shareholder loan account activity
• Expense reimbursements
• Amounts contributed by shareholders
• Amounts withdrawn by shareholders

Not every amount transferred between an owner and the corporation is automatically salary or a dividend. The underlying transaction needs to be identified correctly.

Personal Tax Information May Be Relevant in Some Cases

A shareholder's complete personal tax return is not automatically a core document required to prepare every corporate T2 return.

However, personal tax information may become relevant when the engagement also involves owner compensation, salary versus dividend planning, shareholder loans, related-party transactions, or other personal/corporate planning questions.

The accountant can identify which personal information is actually required rather than collecting unnecessary documents.

Capital Asset Purchases and Disposal Records

Keep invoices and supporting records for equipment, vehicles, computers, furniture, machinery, property, and other longer-term business assets purchased during the year.

The tax treatment depends on the asset and the rules that apply. Some costs may be current expenses while others may need to be recorded as capital property and tracked through applicable capital cost allowance schedules.

For each significant asset, keep:

• Purchase invoice
• Purchase date
• Purchase price
• Applicable taxes
• Delivery or installation costs where relevant
• Financing information
• Date available for use
• Sale or disposal documents if the asset was sold

Loans, Lines of Credit and Financing Documents

If the corporation borrowed money, provide enough documentation to reconcile the liability and identify principal and interest amounts.

Useful records include:

• Loan agreements
• Line-of-credit statements
• Year-end lender statements
• Interest summaries
• Equipment financing contracts
• Shareholder loan records

Interest may receive different tax treatment depending on why the money was borrowed and how it was used, so it should not be assumed that every financing charge is automatically deductible.

Lease Agreements

Keep copies of material lease agreements affecting the corporation's expenses or obligations.

Examples include:

• Office or commercial property leases
• Vehicle leases
• Equipment leases
• Warehouse leases
• Machinery agreements

Lease terms can affect accounting and tax treatment, so the complete agreement is often more useful than a record showing only the monthly payment.

Corporate Insurance Records

Keep insurance invoices, policy documents, and payment records for coverage connected with the business.

This can include:

• Commercial general liability insurance
• Property insurance
• Professional liability coverage
• Commercial vehicle insurance
• Cyber insurance
• Other business-specific policies

The deductibility and timing of insurance costs depend on the policy and business circumstances. Policies spanning the corporate year-end may also create prepaid expense considerations.

GST/HST and Other Sales Tax Records

If the corporation is registered for GST/HST or another applicable sales-tax account, provide the filing and reconciliation records covering the corporate year.

• GST/HST returns
• GST/HST account statements
• Tax collected on sales
• Input tax credit records
• Reconciliations to the general ledger
• BC PST records where applicable

For GST-related support, see GST Filing Services .

Corporate and Shareholder Records

Some corporate tax questions depend on the corporation's legal and ownership records.

Relevant documents may include:

• Articles of incorporation
• Shareholder information
• Share transactions
• Changes in directors or officers
• Dividend resolutions
• Corporate reorganizations
• Changes in ownership

These records can be particularly important when the tax filing involves dividends, ownership changes, shareholder loans, related corporations, or other transactions that depend on the corporate structure.

Corporate Rental Property Records

If the corporation owns rental real estate, maintain detailed accounting records for the rental activity as part of the corporation's T2 reporting process.

Useful records can include:

• Rental income records
• Property tax statements
• Insurance documents
• Property management fees
• Repair and maintenance invoices
• Mortgage or financing statements
• Capital improvement invoices
• Property purchase or sale documents

Do not automatically use the individual T776 rental form for a corporation. Corporate rental activity should be reflected in the corporation's accounting records and applicable T2 schedules.

Prior-Year Corporate Tax Information

The prior year's corporate tax file can provide information that needs to carry forward into the current return.

Gather:

• Previous T2 return
• Notice of Assessment or reassessment
• Prior-year financial statements
• Capital cost allowance schedules
• Loss carryforward information
• Tax installment records
• Relevant CRA correspondence

Digital and Paper Records Can Both Work

Corporate records can be maintained electronically, on paper, or through a combination of both, provided the records remain organized, readable, and available when required.

Many corporate tax and accounting records generally need to be retained for several years. Follow the applicable CRA retention requirements for the particular record and tax year.

Corporate Tax Filing Document Checklist

Before sending a corporate file for year-end preparation, check whether the following categories are complete:

• General ledger and trial balance
• Year-end financial information
• Bank and credit-card statements
• Bank reconciliation reports
• Sales and accounts receivable records
• Vendor invoices and expense receipts
• Payroll reports
• T4 information where applicable
• T5/dividend information where applicable
• GST/HST and PST records where applicable
• Capital asset invoices
• Asset disposal records
• Loan and financing statements
• Lease agreements
• Insurance records
• Shareholder loan details
• Dividend and shareholder records
• Prior T2 return
• CRA Notice of Assessment
• Relevant CRA correspondence
• Other documents requested for your specific corporation

Frequently Asked Questions

Corporate Tax Filing Support Across British Columbia

Phoenix Knight Financial Services supports incorporated businesses with corporate tax filing, financial accounting, bookkeeping, year-end preparation, and related record organization in Surrey and other communities across British Columbia.