Corporate Tax Returns
OVP CPA prepares corporate income tax returns for owner-managed businesses. The preparation process connects the company’s accounting records with its tax reporting obligations, including the adjustments needed to calculate taxable income.
A review of financial statements, supporting records and significant transactions identifies the information needed to complete the return. When financial statement preparation is also part of the engagement, the two services are coordinated.
The preparation process may include:
- Income and expense reporting: Reviewing the tax treatment of amounts recorded in the financial statements.
- Capital assets and financing: Examining purchases, disposals, and related records for the required tax calculations.
- Shareholder transactions: Reviewing compensation, dividends, and amounts owing between the company and its owners.
Before filing, the return, anticipated tax balance and relevant filing and payment requirements are discussed with you, along with matters to address in the next fiscal year.
Partnership Returns
Partnership information return preparation helps partners meet the reporting requirements that apply to their business. Filing obligations depend on the partnership’s circumstances, including whether a T5013 information return is required.
The preparation process draws on the partnership’s financial records and the information needed to report its activities and allocate income or loss. Each partner’s share must also be considered in that partner’s own tax reporting.
Services may include:
- Partnership reporting: Preparing the required information return and supporting schedules.
- Partner allocations: Reviewing the allocation of income, losses, and other reportable amounts.
- Partner information slips: Preparing the relevant slips and explaining how they relate to the partners’ returns.
An initial discussion covers changes in the partnership and any missing records, so the reporting reflects its activities and the information provided by the partners.
Corporate Tax Planning and Advisory
We help business owners plan for corporate tax obligations and understand how decisions made during the year may affect both the company and its shareholders. Planning starts with your business goals and the financial information available.
We review the relevant transactions, explain the tax considerations, and compare options where appropriate. Our advice takes account of the company’s circumstances and its owners’ personal tax positions.
Areas we may discuss include:
- Salary and dividends: Considering the effects of different forms of owner compensation.
- Shareholder balances: Reviewing loans, withdrawals, and amounts due to or from shareholders.
- Business purchases and investments: Assessing tax considerations before significant transactions are completed.
We also help you anticipate tax payments and identify records or reporting that will be needed. Reviewing a proposed transaction early gives you time to consider its implications before acting.