Publish at: 2021-05-26
In the past couple of months, we received a couple of letters from CRA, which required the company to complete Form T2SCH50. If the company does not file this schedule correctly for future tax years, the company could receive a maximum of $2,500 penalty and interest accumulates on amounts owed.
In the letter, CRA also asked to provide a copy of the shareholder register, showing the names and addresses of all shareholders, the number of shares they own, the date they received those shares, and when shares are returned to the company or transferred to other individual or companies.
T2SHC50 is one of corporate income tax return schedules. This form needs to provide the following information:
1. Each shareholder who owns 10% or more of the common and /or preferred shares.
2. Shareholder name (individual or company name).
3. Account number (business number, social insurance number or trust number).
4. The percentage of common and preferred shares they held.
To provide above information and avoid future penalty by CRA, we would like to advise all of you to prepare minute book which includes shareholder information (please be noted that certificate of incorporate only lists directors’ name, not shareholders’ name). Unfortunately, our firm cannot help you with this part as it is a legal document. You can ask lawyer to help you. We will follow your minute book to prepare your company’s year-end financial statements, file corporate tax returns and report T2SHC50.