Who this applies to
Anyone who set up a company and then did not use it. Maybe you incorporated for a contract that did not happen. Maybe the business closed but the company was never shut down. Maybe a holding company owns something for you. If the company exists, it files.
One thing most people do not realize
A BC company has two separate yearly filings that go to two different places. The T2 goes to the CRA within six months of the year end, even for a company that did nothing. The annual report goes to BC Registries. Filing one does not satisfy the other.
The rule
The CRA’s own words: all resident corporations have to file a T2 return for every tax year, even if there is no tax to pay. The only exceptions are tax-exempt Crown corporations, Hutterite colonies and registered charities. The CRA names inactive corporations on purpose. “Inactive” does not get you out of filing.
When it is due
A T2 return is due six months after the end of the corporation’s tax year. If the year end is December 31, the return is due June 30. Any tax owing is generally due before the filing deadline, but for an inactive company there is usually none.
Two things people confuse with the T2
The BC annual report. A BC company also files an annual report with BC Registries each year to stay in good standing. That is a corporate registry filing, not a tax return. Filing one does not satisfy the other.
“Nothing happened” and “no return needed.” A year with no sales still has a year end, a balance sheet and a T2. A nil return is short, but it is still a return.
What we need when nothing happened this year
Our checklist for a nil or near-nil year.
- The company’s legal name, business number and fiscal year end
- Last year’s T2 and Notice of Assessment, if there is one
- Bank statements for the year, even if the balance never moved
- Anything the company paid or was paid, including fees to keep it registered
- Any money you put into or took out of the company
- Whether the company owns anything: a vehicle, equipment, a property, shares
That is usually enough. If the company has been inactive for several years, bring whatever you have for each year and we will work out the order.
Thinking of closing the company?
Shutting a company down for good is called dissolution. It is a registry process with its own steps. The CRA expects returns to be filed right up to the date the company is dissolved. We prepare the returns. The dissolution itself is a separate matter. We will tell you if you need a lawyer or registry help for it.
Official sources
- CRA: Find out if you have to file a corporation income tax return (T2)
- CRA: When to file your corporation income tax return
- BC Registries: Corporate Online annual report
This guide is general information, not advice about your situation. It reflects the rules for the 2025 and 2026 tax years. It has not yet been reviewed by a practitioner. The information was checked against the official sources listed above on the date shown. Rules change. Check the official sources above or ask us. How we prepare these guides.