Form T2 "Short Return" - Canada

What Is T2 Short Return?

Form T2, Short Return, is a legal document certain categories of Canadian corporations can complete to report their income during the year. This form was released by the Canadian Revenue Agency (CRA) on January 1, 2019, with all previous editions obsolete. Download a fillable Form T2 Short Return below. If your corporation does not belong to one of the exempt categories, you have to submit Form T2, Corporation Income Tax Return, instead.

Alternate Name:

  • T2 Short Form.

Submit this return only if your business complies with the eligibility rules:

  1. You own a private business formed in Canada.
  2. Your organization has no income or has incurred a capital loss this year.
  3. You have tax-exempt status in accordance with the Income Tax Act - for instance, you manage a non-profit entity.
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How to Fill Out T2 Short Return?

Here is how you prepare the T2 Short Form:

  1. Begin with Schedule 1S - it is an essential part of the current edition of the return. Enter the name of your company, its business number, and the date when you end your tax year.
  2. Indicate your net income or loss after taxes - write down the same number in Form T2 Schedule 125, Income Statement Information, you attach to the form.
  3. Add the value of tangible and intangible assets, donations and gifts, capital gains and various expenses. You are free to include other additions. Then, deduct the total amount from the total income or loss from Line A.
  4. Calculate the net income (loss) for the purposes of the report. Add all your deductions - incomes of joint venture and partnership, holdbacks, allowable investment losses, etc. - and deduct this amount from the number you wrote on Line B.
  5. Prepare the main body of the return - write down your business number and name of the organization, list your addresses, check the box to select the corporation type and the type of exemption you qualify for.
  6. Indicate the beginning and the end of the tax year you are describing and check the applicable boxes to confirm changes your business has gone through during the reporting period. Record the net income or loss from Form T2 Schedule 1, Net Income (Loss) for Income Tax Purposes, on line 300.
  7. Answer the questions on the last page of the return to figure out which schedules must be attached to the form.
  8. Describe the area of business you are involved in, state whether your organization is active or not.
  9. Certify all the statements in the form are complete and true, enter your full name and position, date and sign the document, and add your telephone number. Check the box to choose the language for future correspondence.

You may submit this form online or via traditional mail. The T2 Short Return mailing address will depend on the location of your business - you have to file the documentation at your local tax service office.

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Download Form T2 "Short Return" - Canada

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Clear Data
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.)
Clear Data
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.)
Clear Data
Schedule 1 S
Code 1901
Net Income (Loss) for Income Tax Purposes
Protected B
when completed
Tax year-end
Corporation's name
Business number
Year
Month
Day
• 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.
A
Net income (loss) after taxes and extraordinary items from line 9999 of Schedule 125 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Add:
101
Provision for income taxes – current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
102
Provision for income taxes – deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
104
Amortization of tangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
106
Amortization of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
107
Recapture of capital cost allowance from Schedule 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
111
Loss on disposal of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
112
Charitable donations and gifts from Schedule 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
113
Taxable capital gains from Schedule 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
117
Depreciation in inventory – end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
121
Non-deductible meals and entertainment expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
125
Other reserves on lines 270 and 275 from Schedule 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
129
Income or loss for tax purposes – partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
132
Income or loss for tax purposes – joint ventures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other additions (If you need more space, attach additional schedules):
Description
Amount
605
295
Total of column 2
296
500
Total of lines 101 to 132 and line 296 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtotal (amount A plus line 500)
B
Deduct:
304
Bad debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
306
Equity in income from subsidiaries or affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
348
Book income of joint venture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
349
Book income of partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
401
Gain on disposal of assets per financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
403
Capital cost allowance from Schedule 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
404
Terminal loss from Schedule 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
406
Allowable business investment loss from Schedule 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
408
Holdbacks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
413
Other reserves on line 280 from Schedule 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
417
Contributions to deferred income plans from Schedule 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
418
Incorporation expenses under paragraph 20(1)(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other deductions (if you need more space, attach additional schedules):
Description
Amount
705
395
Total of column 2
396
510
Total of lines 304 to 418 and line 396 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C
Net income (loss) for income tax purposes – amount B minus line 510 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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)
Clear Data
200 S
T2 Short Return
Code 1901
(2019 and later tax years)
Protected B
when completed
• This form serves as a federal and provincial or territorial corporation income tax return, unless the corporation is located in
Quebec or Alberta. If the corporation is located in one of these provinces, you have to file a separate provincial corporation
Do not use this area
055
return.
• All legislative references in this return are to the Income Tax Act. This return may contain changes that had not yet become
law at the time of publication.
• Send one completed copy of this return, including schedules, and the General Index of Financial Information (GIFI) to your
tax centre or tax services office. You have to file the return within six months after the end of the corporation's tax year.
• For more information, see
canada.ca/taxes
or guide T4012, T2 Corporation – Income Tax Guide.
Identification
Business number (BN)
R C
001
Corporation's name
002
Address of head office
To which tax year does this return apply?
Tax year start
Tax year-end
Has this address changed since the
Yes
No
010
last time we were notified? . . . . . . . . . . .
Year Month Day
Year Month Day
If yes, complete lines 011 to 018.
060
061
011
Has there been an acquisition of control
012
resulting in the application of
subsection 249(4) since the tax year
City
Province, territory, or state
063
Yes
No
start on line 060? . . . . . . . . . . . . . . . . . . .
015
016
Country (other than Canada)
Postal or ZIP code
Year Month Day
If yes, provide the date control was
017
018
065
acquired . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mailing address (if different from head office address)
Is the date on line 061 a deemed
Has this address changed since the last
tax year-end according to
Yes
No
Yes
No
020
066
time we were notified? . . . . . . . . . . . . . .
subsection 249(3.1)? . . . . . . . . . . . . . . . .
If yes, complete lines 021 to 028.
Is the corporation a professional
021
c/o
corporation that is a member of a
Yes
No
067
partnership? . . . . . . . . . . . . . . . . . . . . . . .
022
023
Is this the first year of filing after:
City
Province, territory, or state
Yes
No
070
Incorporation? . . . . . . . . . . . . . . . . . . . . .
025
026
071
Yes
No
Amalgamation? . . . . . . . . . . . . . . . . . . . .
Country (other than Canada)
Postal or ZIP code
If yes, complete lines 030 to 038 and attach Schedule 24.
027
028
Location of books and records (if different from head office address)
Has there been a wind-up of a subsidiary
under section 88 during the current tax
Has the location of books and records
072
Yes
No
year? . . . . . . . . . . . . . . . . . . . . . . . . . . . .
changed since the last time we were
Yes
No
030
notified? . . . . . . . . . . . . . . . . . . . . . . . . .
If yes, complete and attach Schedule 24.
If yes, complete lines 031 to 038.
031
Is this the final tax year before
076
Yes
No
amalgamation? . . . . . . . . . . . . . . . . . . . .
032
City
Province, territory, or state
Is this the final return up to
035
036
078
Yes
No
dissolution? . . . . . . . . . . . . . . . . . . . . . .
Country (other than Canada)
Postal or ZIP code
037
038
Net income (loss) for income tax
040
Type of corporation at the end of the tax year (tick one)
purposes from Schedule 1, financial
300
statements, or GIFI . . . . . . . . . . . . . . . . .
1 Canadian-controlled private corporation (CCPC)
2 Other private corporation
Provincial/territorial
3 Public corporation
750
jurisdiction . . . . . . . . . . . . . . . . . . . . . . . .
4 Corporation controlled by a public corporation
5 Other corporation (specify)
840
Tax instalments paid . . . . . . . . . . . . . . . .
085
If the corporation is exempt from tax under section 149, tick one of
If there are excess payments in this year's
the following boxes:
894
instalment account, indicate the refund code . . . . . . . . . . . . .
1 Exempt under paragraph 149(1)(e) or 149(1)(l)
Do not use this area
2 Exempt under paragraph 149(1)(j)
095
4 Exempt under other paragraphs of section 149
096
T2 Short E (19)
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Clear Data
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
201
Is the net income/loss shown on the financial statements different from the net income/loss for income tax purposes? . . . . . . . . . . . . . . .
1
204
Is the corporation claiming any type of loss? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
206
6
Has the corporation realized any capital gains or incurred any capital losses during the tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
208
8
Does the corporation have any property that is eligible for capital cost allowance? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
150
9
Is the corporation related to any other corporations? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Has the corporation had any transactions, including section 85 transfers, with its shareholders, officers, or employees, other than
162
transactions in the ordinary course of business? Exclude non-arm's length transactions with non-residents . . . . . . . . . . . . . . . . . . . . . . . .
11
213
13
Is the corporation claiming deductible reserves? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
164
14
Has the corporation paid any royalties, management fees, or other similar payments to residents of Canada? . . . . . . . . . . . . . . . . . . . . . .
165
15
Is the corporation claiming a deduction for payments to a type of employee benefit plan? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
160
Is the corporation an associated CCPC? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
For private corporations: Does the corporation have any shareholders who own 10% or more of the corporation's common and/or
173
preferred shares? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
50
Additional information
Yes
No
280
Is the corporation inactive? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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.
295
Yes
No
If the corporation's major business activity is construction, did you have any subcontractors during the tax year? . . . . . . . . .
920
If this return was prepared by a tax preparer for a fee, provide their EFILE number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Certification
950
951
954
I,
,
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
Telephone number
Signature of the authorized signing officer of the corporation
Date (yyyy/mm/dd)
957
Yes
No
Is the contact person the same as the authorized signing officer? If no, complete the information below . . . . . . . . .
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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