Why Professional Corporate Tax Filing Saves Money in the Long Run
For many small and medium-sized business owners in Ontario, filing corporate taxes can feel like a burden. With changing CRA rules, strict deadlines, and complex deductions, some businesses attempt to cut costs by handling corporate tax filing themselves or relying on basic software. While this might seem like a way to save money in the short term, it often leads to errors, missed deductions, and costly penalties.
The truth is that professional corporate tax filing saves money in the long run. At Mak Tax & Accounting Services, we’ve helped hundreds of corporations in Scarborough, Toronto, and the GTA file accurate tax returns, reduce liabilities, and avoid CRA penalties. Beyond compliance, our services—such as bookkeeping, payroll, HST filing, and tax planning—provide businesses with the tools they need to grow confidently.
This guide explains why professional help is not an expense but an investment in your company’s financial health.
The Risks of DIY Corporate Tax Filing
Filing your own T2 corporate tax return may seem simple at first, but many business owners underestimate how complicated the process can be.
1. Missed Deductions
Without proper knowledge of CRA rules, businesses often miss out on eligible deductions such as:
Capital Cost Allowance (CCA) for assets.
Professional and legal fees.
Home office or vehicle expenses.
HST Input Tax Credits (ITCs).
Each missed deduction increases your taxable income and, in turn, your tax bill.
2. Errors in Filing
Even small errors in corporate tax returns can trigger CRA reassessments or audits. Software programs don’t always catch these mistakes.
3. Late Filing Penalties
The CRA charges:
5% of the balance owing immediately, plus
1% per month (up to 12 months) for late filings.
Each missed deduction increases your taxable income and, in turn, your tax bill.
Mak Tax Advantage:
With our Corporate Tax Filing Services, Scarborough businesses file on time, accurately, and with all eligible deductions claimed.
How Professional Corporate Tax Filing Saves Money
Filing your own T2 corporate tax return may seem simple at first, but many business owners underestimate how complicated the process can be.
1. Maximizing Deductions and Credits
Accountants understand what can be deducted and how to optimize claims. For example:
Claiming full HST ITCs.
Maximizing depreciation with proper CCA schedules.
Deducting WSIB premiums and payroll costs.
Mak Tax Service Tie-In:
Our Bookkeeping Services ensure every expense is tracked and categorized correctly, so nothing gets overlooked at tax season.
2. Avoiding CRA Penalties and Interest
Late or inaccurate filings can cost thousands in penalties and interest. Professional accountants ensure compliance with CRA rules and deadlines.
Mak Tax Advantage:
Our Deadline Management Systems notify clients in Scarborough and Toronto well ahead of CRA filing dates, preventing unnecessary fees.
3. Strategic Tax Planning
Corporate tax filing isn’t just about submitting a return—it’s about planning for the future. Professionals can structure your finances to:
Decide whether to take salary vs. dividends.
Split income legally with family members.
Plan capital asset purchases for maximum deductions.
Mak Tax Service Tie-In:
Our Tax Planning & Advisory Services help GTA business owners save money not only this year but in future years too.
4. Cash Flow Optimization
Tax professionals help you budget for corporate tax payments and avoid last-minute surprises. This improves cash flow and financial stability.
Mak Tax Advantage:
Through Corporate Advisory Services, we help businesses plan quarterly or monthly payments to avoid large year-end bills.
5. Audit Protection
If CRA selects your business for an audit, having professional records and filings provides peace of mind. Professionals know how to respond and protect your interests.
Mak Tax Service Tie-In:
We provide Audit Support & CRA Representation so business owners never have to deal with CRA alone.
Small Business in Toronto
A Toronto-based marketing agency earning $400,000 annually decided to file its own corporate taxes using basic software. They missed:
Over $15,000 in deductible professional expenses.
Capital asset depreciation deductions.
HST ITCs worth $8,000.
The CRA also charged a late-filing penalty of $3,000 because of incorrect dates.
Total cost: nearly $26,000 in missed savings and penalties.
The following year, they worked with Mak Tax Accounting Services. By leveraging our Corporate Tax Filing, Bookkeeping, and HST Filing Services, they:
Saved over $20,000 in deductions and credits.
Built a tax strategy to reduce liabilities in the future.
Filed on time with no penalties.