Changing Your Taxation Year End

A corporation’s taxation year end is determined in the year of incorporation. The taxation year end can be any date within 53 weeks of the date of incorporation (no more than 371 days after incorporation). This date is generally the same from year to year unless you request and receive approval from CRA to change the taxation year end or there are certain events which allow for a change to the taxation year end. Examples of these events are:

• There is an acquisition of control of the corporation resulting in a deemed year end. A new taxation year end can be any date within 53 weeks of that deemed year end.

• The corporation is being wound up and it is filing its final tax return.

As noted above, a request to change your taxation year can be made, but approval is not guaranteed. This request must be made in writing with the reason(s) for requesting the change and mailed to your tax services office. The reason(s) to request a change in taxation year must be based on sound business reasons. Examples of which are:

• A corporation changing its taxation year to end on the same date of its associated companies;

• A corporation changing its taxation year to end during a period of time that is slower than the rest of the year; and

• Ease of financial reporting.

The saving or deferral of taxes is not a sound business reason for changing a taxation year end.

For more information, please contact info@gytdcpa.com or 1 844-GYTD-CPA

GYTDCPA.com-Changing Your Taxation Year End

.pdf

Download PDF • 55KB