CA$1,000 T2 electronic-filing penalty: why an on-time paper return can still be a problem

Check the filing method as well as the date

A due date is only one part of a filing obligation. CRA generally requires electronic T2 filing for tax years starting after 2023 and lists a CA$1,000 penalty for corporations that fail to comply when required.

The published exceptions include insurance corporations, non-resident corporations, functional-currency filers and corporations exempt from tax payable under section 149. Confirm the applicable rule with the preparer. A quiet year or a small balance is not, by itself, one of these listed exceptions.

A printed return is not the same as electronic submission

Ask the preparer what was actually submitted and through which filing channel. A printed return, an approved draft or a bookkeeping export should not be treated as an electronic filing acknowledgement. If the method appears wrong, review the next step with the preparer or CRA rather than assuming another duplicate submission will resolve it.

• Confirm the corporation and tax-year start and end.
• Verify whether mandatory electronic filing applies.
• Agree who will submit through an appropriate filing method.
• Retain the acknowledgement and follow up on a rejection.
• Keep any later assessment with the relevant period's records.

Separate filing-method questions from tax payment

A corporate tax payment does not satisfy the return-submission requirement. Review the balance due, instalments and filing task separately, even when one accountant prepares all the calculations.

Use the checklist to close the loop

Compliance Calendar records the T2 deadline, preparation work and confirmation reference. It does not transmit returns or certify filing software. Before marking the task filed, confirm that the required submission was made and keep its evidence.