A specialist never filed corporate returns for their MPC, assuming none were due. We back-filed and uncovered a $28,000 refund.
A physician had incorporated a medical professional corporation but never filed corporate returns, assuming exempt medical billings meant no tax. We compiled the corporate records, categorized expenses, set up proper salary and dividend allocations, and filed the backlog. The returns revealed substantial overpayments and produced a $28,000 refund.
Health services are largely GST/HST-exempt, which blocks input tax credits on overhead and makes professional corporation rules the main planning lever.
A CCPC files its T2 within six months of year-end, with the balance due two months after (three where the small business deduction is claimed). The 9% federal small business rate applies to the first $500,000 of active business income.
Why it bites: The filing and payment deadlines differ, and interest runs from the payment date. Filing on time while paying late still costs money.
The first fiscal year-end must fall within 53 weeks of incorporation and sets every filing deadline that follows. Share structure decided at incorporation governs who can receive dividends later.
Why it bites: Year-one choices are cheap to make and expensive to undo. Restructuring share classes after value has accrued triggers its own tax consequences.
The late-filing penalty is 5% of the balance owing plus 1% for each full month late, to a maximum of twelve months. A second late filing within three years doubles both figures.
Why it bites: The penalty is calculated on the balance owing, so a late return with nothing owing costs nothing — which is why filing on time matters even when you cannot pay.
A T1 adjustment can reach back ten calendar years, and ReFILE handles most changes without a paper T1-ADJ.
Why it bites: Most missed refunds are still recoverable years later. Very few taxpayers go back and look.
Every engagement above was priced as a fixed fee agreed before the work started, and paid only once the client had reviewed the result. If any of this looks like your situation, the first step is a free 15-minute call — we will tell you plainly whether there is anything worth doing.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe a real engagement; outcomes depend on your own facts. Client details are omitted for confidentiality.
