Canadian Income Tax Questions Answered (Small Business Canada)

Answers to Common Canada Tax Questions

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Have Canadian income tax questions related to running a business?

Wondering how long you have to keep your business records? When corporate income tax is due? about What you can or can't deduct on your income tax? Or just how long you'll have to wait to get a tax refund after you've filed. These tax FAQs have the answer.

Click on any of the income tax questions below to read the answer to that question.

For help filling out your Canadian income tax return and related forms see these articles:

How to Complete the Canadian T1 Business Income Tax Form 

How to Fill Out Form T2125 (Statement of Business or Professional Activities)

How to Calculate CCA (Capital Cost Allowance) 

How Do I Pay Income Tax as an Independent Contractor in Canada? 

Canadian Income Tax for Freelancers 

Corporate Tax Rates & How to Prepare & File Corporate Income Tax

Canada Tax Questions: Canadian Income Tax Questions on Dates and Penalties

Q. When are Canadian taxes due?

Q. When must Canadian corporate income tax returns be filed?

Q. When are corporate taxes due if there is a balance owing?

Q. What happens if I don't file my Canadian income tax on time?

Q. What happens if I can't pay the Canadian income tax that I owe?

Canadian Income Tax Questions on Filing Canadian Income Tax

Q. What are my options for filing Canadian income tax?

Q. How do I report my business income and which Canadian income tax forms do I need?

Q. Do I have to fill out income tax form T2125?

Q. My business is a partnership. Is there a special Canadian income tax form I need to fill out?

Q. My business is incorporated. Do I still need to file a T1 income tax form?

Q. Some of my business income is from other countries. How do I handle this on my Canadian income tax form?

Q. I have a job as well as a part-time business. How do I report this on my income tax form?

Q. I don't really have a business, but I make a few bucks from my hobby. Do I need to declare this income?

Q. I have several businesses. How do I handle this on my income tax form?

Q. Can I file Canadian taxes online?

Q. How long does a tax refund take?

Canadian Income Tax Questions: General Business Tax Questions

Q. What is business income?

Q. How long do I have to keep my business records?

Q. What is the Profit Test and how might it affect my Canadian income tax?

Q. What if I disagree with my income tax assessment?

Q. How do I change my fiscal year end?

Q. How is an Internet business taxed?

Q. How long does the Canada Revenue Agency have to decide to audit my business taxes after I file them?

Canadian Income Tax Questions on Business Income Tax Deductions

Q. What business expenses can a Canadian business claim on income tax?

Q. Do I include taxes when claiming business expenses?

Q. Are there specific income tax deductions for home-based businesses?

Q. How do I calculate the home-based business deduction on my income tax?

Q. Is there a way I can split my income with lower-earning family members and pay less tax?

Q. Is there any point to getting an RRSP? 

Q. My business made no money this year. Can I still claim business expenses?

Q. I just started a business recently, but I incurred business expenses before the business started. Can I claim these on my income tax?

Q. I incurred business expenses that I no longer have the receipts for. Can I claim these on my income tax?

Q. What are the rules for claiming entertainment and meal expenses?

Q. Is business promotion a legitimate tax deduction?

Q. Do I include the GST/HST I paid when claiming Capital Cost Allowance?

Q. What Capital Cost Allowance class are computers and computer equipment in?

Q. What motor vehicle expenses can I claim on Canadian income tax?

Q. How do I claim CCA (Capital Cost Allowance on my vehicles?

Q. How do I claim CCA (Capital Cost Allowance) on a vehicle I bought for business use?

Q. How do I keep a mileage log that I can use to claim motor vehicle expenses?

Q. What are the limits on charitable donation deductions for a Canadian business?

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