T2 corporate tax preparation checklist

01 Establish the engagement

Confirm legal name, business number, addresses, tax year and corporation type; identify any short year or change of control.Obtain the prior T2, assessments, reassessments and carryforward schedules; explain differences from the prior working file.Document the ownership and associated-corporation group; identify permanent establishments and provincial filing obligations.Set separate filing, balance payment and instalment review dates; assign preparer and reviewer responsibilities.

02 Assemble and reconcile source records

Obtain the final trial balance, general ledger, financial statements and adjusting entries; agree opening balances to the preceding year.Reconcile bank accounts, receivables, payables, debt, payroll balances and shareholder or related-party accounts.Collect fixed-asset additions and disposals, financing agreements, investment statements and tax slips.Gather dividend resolutions, share changes, legal agreements and details of unusual or non-recurring transactions.

03 Build the tax working papers

Map financial statements to GIFI and reconcile balance sheet, income statement and retained earnings; consider Schedule 141 and financial-statement notes.Prepare Schedule 1 support for book-to-tax adjustments, including current/deferred tax, amortization, provisions and non-deductible expenses.Reconcile CCA pools, additions, disposals and available elections; review applicable acquisition-date rules.Reconcile tax losses, credits and other carryforwards to assessed balances and current-year movements.Review investment income, dividends, refundable taxes and dividend accounts where relevant.Document small-business deduction eligibility, group allocation and federal/provincial limit reductions; check applicable rates and effective dates.

04 Address additional filing requirements

Complete applicable corporate schedules; assess separate Québec and Alberta returns and provincial allocation.Assess foreign property, foreign affiliates and non-arm’s-length non-resident reporting, including T1135, T1134 and T106 where applicable.Review withholding, information slips, related-party transactions and any elections or specialist claims with separate deadlines.Record unresolved technical matters, supporting sources and the reviewer’s conclusions.

05 Review, file and retain evidence

Reconcile the tax return to the working papers and resolve software diagnostics and outstanding review notes.Reconcile instalments and payments to authority account records; arrange any balance payment separately from filing.Obtain the required approvals and filing authorization; transmit through the applicable filing process.Retain the final return, submission confirmation, payment evidence and signed-off supporting file; review the assessment when received.