Corporate income tax

Corporations have to meet certain obligations such as:

• reporting all income and expenses
• notifying the CRA when there is a change of directors

Director's Liability

If a corporation (including for-profit or non-profit corporations) fails to deduct, withhold, remit, or pay amounts held in trust for the Receiver General for Canada, the directors of the corporation at the time of failure may be held personally liable along with the corporation to pay the amount owing. This amount includes penalties and interest.

However, if the directors take action to ensure the corporation makes the necessary deductions or remittances, we will not hold the directors personally responsible.

Forms and publications

• Guide T4012, T2 Corporation - Income Tax Guide

Related topics

• Business Registration Online
• Canada Business
• Related provincial and territorial government sites
• Industry Canada