Reporting your business income and expenses

To report your business income and expenses, you can complete Form T2125, Statement of Business or Professional Activities. This form can be used to report business or professional income and expenses (including self-employed commission sales).

You have to complete a separate form for each business or professional activity you operate, if you have two or more of either. For more information, see Interpretation Bulletin IT-206, Separate Businesses.

Penalties

Include all your income when you calculate it for tax purposes. If you fail to report all your income, you may be subject to a penalty of 10% of the amount you failed to report after your first omission.

A different penalty may apply if you knowingly or under circumstances amounting to gross negligence participate in the making of a false statement or omission on your tax return. In such a case, the penalty is 50% of the tax attributable to the omission or false statement (minimum $100).

Forms and publications

Multimedia