Cra T2 Short Return Form – Fill Out and Use This PDF

The T2 Short Return

Who can use the T2 Short Return?

The T2 Short Return is a simpler version of the T2 Corporation Income Tax Return. There are two categories of corporations that are eligible to use this return. You can use this return if the corporation is:

•a Canadian-controlled private corporation throughout the tax year and has either a loss or a nil net income for income tax purposes this year

•exempt from tax under section 149 of the Income Tax Act (such as a non-profit organization)

In addition, the corporation must meet all of the following conditions to use this return:

•it has a permanent establishment in only one province or territory

•it is not claiming any refundable tax credits (other than a refund of instalments paid)

•it did not receive or pay out any taxable dividends

•it is reporting in Canadian currency

•it does not have an Ontario transitional tax debit

•it does not have an amount calculated under section 34.2 of the Income Tax Act

File a regular T2 Corporation Income Tax Return if the corporation does not fit into either of the above categories or does not meet all of the above conditions.

Except for Quebec and Alberta, the T2 Short Return also serves as a provincial or territorial income tax return.

What should you attach to the T2 Short Return?

There are three General Index of Financial Information (GIFI) schedules you have to attach to this return*:

•Schedule 100, Balance Sheet Information, showing the financial position of the corporation at the end of the tax year

•Schedule 125, Income Statement Information, showing the corporation's income and expenses for the year (if the corporation did not earn any income or incur any expenses, simply state "no income" or "no expenses")

•Schedule 141, Notes Checklist, for any notes to the financial statement information and to indicate the involvement of an accountant

For more information, see guide RC4088, General Index of Financial Information (GIFI).

*If your corporation is inactive (you answered yes on line 280) and there is no balance sheet or income statement information to report, you do not have to attach these schedules.

Depending on the circumstances, you may have to attach other forms or schedules, like Schedule 1, Schedule 8 and Schedule 50. For more information, see page 2 of the T2 Short Return and the T2 Guide. For your convenience, this package includes the short version of Schedule 1.

Note

If you need a copy of guide T4012, T2 Corporation – Income Tax Guide, or other schedules, go to canada.ca/cra-forms or call 1-800-959-5525. If you need any additional information to help you complete this return, call Business Enquiries

at 1-800-959-5525.

T2 Short E (19)

(Ce formulaire est disponible en français.)

Schedule 1 S

	Net Income (Loss) for Income Tax Purposes								Code 1901
			Protected B when completed
Corporation's name		Business number		Year		Tax year-end				Day
								Month

•Use this schedule to reconcile the corporation's net income (loss) as reported on the financial statements with its net income (loss) for tax purposes. For more information, see guide T4012, T2 Corporation – Income Tax Guide.

•All legislative references are to the Income Tax Act.

Net income (loss) after taxes and extraordinary items from line 9999 of Schedule 125											. . . . . . . . . . . . . . . . . . . .			A
Add:
									101
	Provision for income taxes – current					. . . . . . . . . .		. . . .
	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Provision for income taxes – deferred					. . . . . . . . . .		. . . .	102
	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Amortization of tangible assets							. . . .	104
	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Amortization of intangible assets					. . . . . . . . . .		. . . .	106
	. . . . . . . . . . . . . . . . . . .Recapture of capital cost allowance from Schedule 8					. . . . . . . . . .		. . . .	107
	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Loss on disposal of assets							. . . .	111
	. . . . . . . . . . . . . . . . . . . . . . .Charitable donations and gifts from Schedule 2					. . . . . . . . . .		. . . .	112
	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Taxable capital gains from Schedule 6					. . . . . . . . . .		. . . .	113
	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Depreciation in inventory – end of year					. . . . . . . . . .		. . . .	117
	. . . . . . . . . . . . . . . . . . . .Non-deductible meals and entertainment expenses					. . . . . . . . . .		. . . .	121
	. . . . . . . . . . . . . . . . .Other reserves on lines 270 and 275 from Schedule 13					. . . . . . . . . .		. . . .	125
	. . . . . . . . . . . . . . . . . . . . . . .Income or loss for tax purposes – partnerships					. . . . . . . . . .		. . . .	129
	. . . . . . . . . . . . . . . . . . . . . . .Income or loss for tax purposes – joint ventures					. . . . . . . . . .		. . . .	132
	Other additions (If you need more space, attach additional schedules):
	Description				Amount
		605				295

			Total of column 2						◄	296
															◄
	Total of lines 101 to 132 and line 296									500
					. .	. . . . . . . . . .			. . . .
									Subtotal (amount A plus line 500)								B
Deduct:
	Bad debt								. . . .	304
	. . . . . . . . . . . . . . . . . . . . . .Equity in income from subsidiaries or affiliates				. .	. . . . . . . . . .			. . . .	306
	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Book income of joint venture . . .					. . . . . . . . . .			. . . .	348
	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Book income of partnership . . .					. . . . . . . . . .			. . . .	349
	. . . . . . . . . . . . . . . . . .Gain on disposal of assets per financial statements				. .	. . . . . . . . . .			. . . .	401
	. . . . . . . . . . . . . . . . . . . . . . . . . . .Capital cost allowance from Schedule 8				. .	. . . . . . . . . .			. . . .	403
	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Terminal loss from Schedule 8 .					. . . . . . . . . .			. . . .	404
	. . . . . . . . . . . . . . . . .Allowable business investment loss from Schedule 6				. .	. . . . . . . . . .			. . . .	406
	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Holdbacks					. . . . . . . . . .			. . . .	408
	. . . . . . . . . . . . . . . . . . . . . . .Other reserves on line 280 from Schedule 13				. .	. . . . . . . . . .			. . . .	413
	. . . . . . . . . . . . .Contributions to deferred income plans from Schedule 15				. .	. . . . . . . . . .			. . . .	417
	. . . . . . . . . . . . . . . . . . .Incorporation expenses under paragraph 20(1)(b)				. .	. . . . . . . . . .			. . . .	418
	Other deductions (if you need more space, attach additional schedules):
	Description				Amount
		705				395

	Total of column 2		►	396
							◄
Total of lines 304 to 418 and line 396				510
. . . . . . . . . . . . . . . . . . . . . . .Net income (loss) for income tax purposes – amount B minus line 510					.	. . . . . . . . . . . . . . . . . . . .			C

Enter amount C on line 300 on page 1 of the T2 Short Return. If the amount on line C is a positive amount, and the corporation is not exempt from tax under section 149, file a regular T2 Corporation – Income Tax Return.

T2 SCH 1 S E (19)

T2 Short E (19)

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Protected B when completed

Attachments

Financial statement information: Use GIFI schedules 100, 125, and 141.

Schedules – Answer the following questions. For each yes response, attach the schedule that applies to the T2 Short Return, unless otherwise instructed.

Yes Schedule

Additional information

Is the corporation inactive?	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .			280		Yes					No
Specify the principal products mined, manufactured, sold,	284							285				%
constructed, or services provided, giving the approximate	286							287				%
percentage of the total revenue that each product or
	288							289				%
service represents.
. . . . . . . . .If the corporation's major business activity is construction, did you have any subcontractors during the tax year?				295		Yes					No
If this return was prepared by a tax preparer for a fee, provide their EFILE number				920

Certification

I,	950				951				954			,
			Last name				First name				Position, office, or rank

am an authorized signing officer of the corporation. I certify that I have examined this return, including accompanying schedules and statements, and that the information given on this return is, to the best of my knowledge, correct and complete. I also certify that the method of calculating income for this tax year is consistent with that of the previous tax year except as specifically disclosed in a statement attached to this return.

955

956

Date (yyyy/mm/dd)

Signature of the authorized signing officer of the corporation

Telephone number

Yes

No

Is the contact person the same as the authorized signing officer? If no, complete the information below

957

958

959

Name of other authorized person

Telephone number

Language of correspondence – Langue de correspondance

Indicate the language of correspondence by entering 1 for English or 2 for French.	990
Indiquez votre langue de correspondance en inscrivant 1 pour anglais ou 2 pour français.

Privacy statement

Personal information is collected for the purposes of the administration or enforcement of the Income Tax Act and related programs and activities including administering tax, benefits, audit, compliance, and collection. The information collected may be used or disclosed for purposes of other federal acts that provide for the imposition and collection of a tax or duty. It may also be disclosed to other federal, provincial, territorial or foreign government institutions to the extent authorized by law. Failure to provide this information may result in interest payable, penalties or other actions. Under the Privacy Act, individuals have the right to access their personal information, request correction, or file a complaint to the Privacy Commissioner of Canada regarding the handling of the individual's personal information. Refer to Personal Information Bank CRA PPU 047 on Info Source at canada.ca/cra-info-source.

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