Large corporations

A large corporation has to file:

• T2 Corporation Income Tax Return; and, if applicable,
• Schedule 38, Part VI Tax on Capital of Financial Institutions.

If a corporation fails to file these returns, a penalty will be charged for each complete month that the returns are late, up to a maximum of 40 months. The penalty will be calculated as follows:

• 0.0005% of the corporation's taxable capital employed in Canada at the end of tax year; and
• 0.25% of the Part VI tax payable by the corporation (before the deductions in subsection 190.1(3)).

A corporation has to identify itself as a large corporation by answering yes to the question at line 233 on page 2 of the T2 return.

NotesA corporation is a large corporation if the total taxable capital employed in Canada at the end of the tax year by it and its related corporations is over $10 million.

A corporation with a permanent establishment in Nova Scotia that is a large corporation, as defined under provincial legislation, has to file Schedule 342, Nova Scotia Tax on Large Corporations. See Nova Scotia tax on large corporations.

A corporation with a permanent establishment in Ontario that is a financial institution, as defined under provincial legislation, has to file Schedule 514, Ontario Capital Tax on Financial Institutions. If the corporation is not a financial institution, it has to file Schedule 515, Ontario Capital Tax on Other Than Financial Institutions.

A corporation with a permanent establishment in Newfoundland and Labrador that is a financial institution, as defined under provincial legislation, has to file Schedule 305, Newfoundland and Labrador Capital Tax on Financial Institutions.

Reference
Section 235 of the Income Tax Act

Forms and publications

• T2 Corporation - Income Tax Guide (T4012)
• Corporation Instalment Guide (T7B-CORP)
• T2 Corporation Income Tax Return
• Schedule 33, Taxable Capital Employed in Canada - Large Corporations
• Schedule 34, Taxable Capital Employed in Canada - Financial Institutions
• Schedule 35, Taxable Capital Employed in Canada - Large Insurance Corporations
• Schedule 38, Part VI Tax on Capital of Financial Institutions
• Schedule 305, Newfoundland and Labrador Capital Tax on Financial Institutions
• Schedule 342, Nova Scotia Tax on Large Corporations
• Schedule 514, Ontario Capital Tax on Financial Institutions
• Schedule 515, Ontario Capital Tax on Other Than Financial Institutions