When you have an Ontario corporation, you are required to file certain returns such as a corporate tax return and possibly an HST return and others. But you are also require to file an annual information return if you incorporated in Ontario. This Annual Return is not another tax return, but provides information on the organization of the corporation and needs to be done each year and best to do it when completing your year end tax return.
In past years when you filed your T2 corporate tax return, the annual return was included in the filing that was sent to CRA. CRA would then pass that information on to the Ontario body each year.
Starting in 2021, CRA has stopped doing this and the requirement is now on the business owner to file this. The process is quite simple, but looks complicated if you have not done this before.
Create An Account
The first step is to create an account with the Ontario Business Registry. If you have recently incorporated, you should already have one. If you haven’t, then you need to create one. You can visit the Annual Return section of their website and click on the blue button to access it, see below for screenshots.
If you do not have a ONe-key already, you will need to set one up. When this is complete and you can sign in to the website.
Link Your Corporations
Once you sign in you will see a list of Corporations linked to your account. If you do not see any, then you need to add them with a look up and you will receive a code in the mail to complete the profile in your account.
File Your Returns
Select the company you want to file the Annual return for, then click on Make Changes and File Annual Return.
The next steps are to follow each screen and confirm that the information that Ontario has on file is correct. Make any changes needed and then submit it.
There is no cost to file this return and it will not affect your tax returns, but failure to file this may result in your corporation being closed down.
If you have any questions or concerns, please contact us for help with your year end filings.