Catch-Up Corporate Tax Filing for Real Estate Brokerages & Agencies
Behind on your brokerage's T2 returns? We file late and multi-year corporate tax for real estate brokerages, agencies and personal real estate corporations across Ontario, rebuild the commission and agent-split bookkeeping behind it, and pursue penalty relief where it applies. From $400.
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Commission Income Is Lumpy, So the Brokerage Return Slips Behind
Real estate income arrives in uneven bursts as deals close, and between the closings, the brokerage owner is recruiting agents, managing listings and chasing commissions, not doing the books. One missed year becomes two, a CRA demand letter lands, and a notional assessment estimates tax far higher than what was really owed, often ignoring the agent commission splits and brokerage expenses that change the real numbers. It is one of the most common situations we see in real estate, and it is fixable.
We get brokerages and personal real estate corporations current. We rebuild the bookkeeping behind the missing years, including gross commissions, agent splits, referral fees and brokerage costs, file each late T2 correctly, reconcile your HST and any agent reporting, and pursue taxpayer relief on penalties and interest where the facts support it. Catch-up corporate tax filing for real estate brokerages and agencies, from $400 per return. AFFORDABLE flat fees.
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Catch-Up Corporate Tax Filing Services for Real Estate Brokerages
Late T2 Filing
Overdue brokerage T2 returns prepared and filed correctly to stop penalties growing.
Multi-Year Catch-Up
Several years behind? We file every outstanding year and get you fully current.
Commission & Split Rebuild
We reconstruct gross commissions, agent splits and referral fees for each missing year.
HST Catch-Up
Outstanding HST returns filed and reconciled, including HST on commissions.
PREC & Agent Reporting
Personal real estate corporations and agent payment reporting brought current.
Penalty Relief & CRA Demands
We respond to CRA demands and pursue taxpayer relief on penalties and interest.
How We Get Your Brokerage Caught Up
A complete catch-up process so every outstanding year is filed accurately, with commissions, agent splits and HST handled correctly. AFFORDABLE flat fees.
Review What Is Outstanding
We start by finding out exactly how far behind the brokerage is across every CRA account.
- Confirm which T2 years are missing and the fiscal year-ends involved.
- Check for CRA demands to file, notional assessments and balances owing.
- Review HST and any agent payment reporting for related outstanding filings.
- Identify whether the higher repeat-filer penalties are a risk.
- Map out the full scope so there are no surprises later.
Rebuild Commissions and Splits
A brokerage return is only as accurate as the commission and agent-split records behind it.
- Reconstruct gross commission income from deal records and bank deposits.
- Rebuild agent commission splits and what the brokerage actually retained.
- Capture referral fees paid and received across the missing years.
- Record brokerage costs: franchise fees, advertising, office, staff.
- Reconcile each year so the numbers stand up to CRA review.
File Each Late T2 Correctly
We prepare and file every outstanding corporate return in the right order.
- Each year's T2 prepared from the rebuilt financial statements.
- Carryforward losses, CCA and balances applied year over year.
- Returns filed in sequence so balances flow correctly between years.
- Accurate numbers filed to replace any notional assessment.
- Confirmation that each year is filed and on record with the CRA.
Reconcile HST and Agent Reporting
Real estate almost always has HST and agent payment reporting tied to the missing years.
- Outstanding HST returns prepared, with HST on commissions handled correctly.
- Input tax credits on brokerage expenses captured.
- Agent and referral payment reporting reviewed and brought current.
- Personal real estate corporation income coordinated where applicable.
- All CRA program accounts reconciled to the same clean records.
Address CRA Demands and Relief
If the CRA has already acted, we deal with it and pursue relief where it fits.
- Respond to demands to file and stop escalating enforcement.
- Replace notional assessments with accurate filed returns.
- Apply for taxpayer relief on penalties and interest where facts support it.
- Consider the Voluntary Disclosures Program where appropriate.
- Represent the brokerage in dealings with the CRA throughout.
Keep You Current Going Forward
Catching up is step one. We make sure it does not happen again.
- Set up monthly or quarterly bookkeeping with commission tracking.
- Calendar every T2, HST and payroll deadline going forward.
- Flat-fee ongoing compliance so the cost is predictable.
- Year-end and T2 handled together each year on time.
- One firm managing the whole brokerage file.
Free Real Estate Brokerage Catch-Up Tax Consultation
Free Real Estate Brokerage Catch-Up Tax Consultation
Case Studies: Real Estate Brokerage Catch-Up Tax Filing
Independent Brokerage, Brampton
A brokerage was three years behind on its T2 returns with a CRA demand letter and a notional assessment that treated gross commissions as profit, ignoring the agent splits paid out. We rebuilt the commission and split records, filed all three years, and the real income was a fraction of the CRA estimate. We then applied for relief on the penalties. Get Started →
Personal Real Estate Corporation, Mississauga
An incorporated agent operating through a PREC had two unfiled years and had never separated commission income from expenses properly. We rebuilt the books, filed the back HST and T2 returns, and the corrected returns sharply reduced the tax the CRA had estimated.
Team Brokerage, Vaughan
A growing team brokerage had stopped filing when the office manager left, accumulating four years of unfiled returns with agent splits and referral fees never reconciled. We reconstructed each year, filed them in sequence, and set up ongoing bookkeeping so the brokerage never falls behind again.
Property Management Agency, Toronto
A real estate agency with a property management arm faced a CRA HST and T2 review and was behind on both. We separated commission and management-fee income, filed the outstanding returns with HST handled correctly, and represented the owner through the review, which closed without further assessment.
What Filing Late Costs a Real Estate Brokerage
The CRA late-filing penalty grows each month a return is outstanding, which is why filing now matters.
| Situation | Penalty | Plus |
|---|---|---|
| First late T2 (balance owing) | 5% of unpaid tax + 1% per month, up to 12 months | Daily compound interest |
| Repeat late filer (within 3 years, after a demand) | 10% of unpaid tax + 2% per month, up to 20 months | Daily compound interest |
| Not filed at all | CRA notional assessment, often taxing gross commissions as profit | Enforcement and collection |
| Filed late with relief granted | Penalties and interest may be cancelled or reduced | Based on circumstances |
The repeat-filer trap: A second late brokerage T2 within a few years can carry a penalty of up to 10% plus 40% of the unpaid tax. Getting current now, and staying current, is far cheaper than letting another year slip.
Brokerage Catch-Up Filing by Number of Years Behind
| Years Behind | What We Do | Typical Priority |
|---|---|---|
| 1 year behind | Rebuild one year with commissions and splits, file the T2 and HST | File fast to cap the 1% monthly penalty |
| 2 to 3 years behind | Reconstruct each year, file in sequence, reconcile HST and agent reporting | Replace any notional assessment with real numbers |
| 4+ years behind | Full multi-year rebuild, sequenced filing, relief or VDP review | Get current and pursue penalty relief |
| CRA already demanding | Respond to the demand, file accurately, represent you with the CRA | Stop enforcement and correct the assessment |
No matter how far behind: Filing is always better than not filing. The late-filing penalty is capped at the months a return is outstanding, so every month of delay can add another 1%. We get brokerages current regardless of how many years have piled up.
What Our Brokerage Catch-Up Filing Includes
| Service | What We Do |
|---|---|
| Outstanding review | Full check of which T2, HST and payroll filings are missing. |
| Bookkeeping rebuild | Reconstruct commissions, agent splits, referral fees and costs for each missing year. |
| Late T2 filing | Each overdue corporate return prepared and filed correctly. From $400 per return. |
| HST catch-up | Outstanding HST returns filed with commissions handled, ITCs captured. |
| PREC & agent reporting | Personal real estate corporation income and agent reporting brought current. |
| Payroll catch-up | Source deductions and T4s brought current where behind. |
| CRA demands & relief | Responses to demands, and taxpayer relief or VDP applications where they fit. |
| Going-forward setup | Ongoing bookkeeping with commission tracking so it never recurs. |
Is Your Brokerage Behind on Corporate Tax?
- You have one or more unfiled T2 returns for your brokerage or PREC
- You received a CRA demand to file or a notional assessment
- Your bookkeeping is incomplete or was never finished for past years
- Your gross commissions and agent splits were never properly separated
- Your referral fees paid and received were never tracked
- You have outstanding HST returns for the same periods
- You are behind on payroll or agent payment reporting
- You stopped filing when an office manager or bookkeeper left
- You are worried the penalties and interest are growing
- You cannot get financing because your filings are not current
- You want the real numbers filed, not a CRA estimate that taxes gross commissions
- You want one firm to handle the whole catch-up
Get Your Brokerage Current. From $400 per Return.
Late T2, HST and agent reporting catch-up, plus penalty relief. 30-Day Money-Back.
Why Brokerages Choose Gondaliya CPA for Catch-Up Filing
Real Estate Specialists
Commissions, agent splits, referral fees, PREC and HST.
Multi-Year Experts
We file years of back returns and deal with CRA demands.
Fixed-Fee Pricing
From $400 per return. No hourly. 30-Day Money-Back. 60-Day Fees-Matching.
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Canada's most AFFORDABLE CPA. Flat fees for every service.
Brokerage Catch-Up Filing Pricing
| Service | Fee | Includes |
|---|---|---|
| Late T2 corporate return (per year) | From $400 | One outstanding brokerage or PREC T2 prepared and filed |
| Multi-year catch-up (per return) | From $400 | Each additional outstanding year filed in sequence |
| HST return catch-up (per period) | From $75 | Outstanding HST return filed and reconciled |
Know Your Exact Catch-Up Fee Before We Start
AFFORDABLE flat fee. 30-Day Money-Back. 60-Day Fees-Matching.
Frequently Asked Questions: Real Estate Brokerage Catch-Up Tax Filing
Meet Your Real Estate Brokerage Catch-Up Tax Specialists
Sharad Gondaliya, CPA
Founder & Managing Director
Gondaliya CPA Professional Corporation
Sharad leads multi-year catch-up filing for real estate brokerages and PRECs, handling late T2 returns, commission splits, HST, CRA demands and taxpayer relief across Ontario.
Vandana Goel, CPA
Senior Accountant
Gondaliya CPA Professional Corporation
Vandana rebuilds brokerage bookkeeping for the missing years, reconstructing gross commissions, agent splits, referral fees, HST and payroll so each return is accurate.
What Our Clients Say
1300+ five-star reviews from business owners across Ontario and Canada.
10 Smart Strategies for a Brokerage Behind on Tax
If your brokerage has fallen behind, these are the moves that protect you, lower what you owe, and stop the problem from growing.
- 1File the oldest outstanding year firstFiling the earliest missing T2 stops that year's late-filing penalty from climbing another 1% each month and sets clean opening balances that flow into every year after it.
- 2Separate gross commissions from agent splitsA brokerage is taxed on what it keeps, not what flows through. Rebuilding the splits paid out to agents is usually the single largest correction to an inflated CRA estimate.
- 3Rebuild the books before you fileA commission return is only as accurate as the deal records behind it. Reconstructing income and expenses first means you file the real net income, not a guess that overstates tax.
- 4Report HST on commissions correctlyReal estate commissions are generally subject to HST. Getting the HST on commissions and the input tax credits on brokerage costs right across each catch-up year keeps your HST accounts clean.
- 5Capture referral fees on both sidesReferral fees paid reduce income and referral fees received add to it. Reconstructing both directions across the missing years gives the brokerage its true net result.
- 6Replace notional assessments with real returnsIf the CRA estimated your tax, it likely taxed gross commissions as profit. Filing the accurate return that reflects agent splits and costs usually lowers the balance dramatically.
- 7Coordinate PREC and personal returnsFor incorporated agents, the PREC and the personal return must line up. Filing them together across the catch-up years prevents mismatches that draw CRA attention.
- 8Respond to CRA demands immediatelyOnce the CRA issues a demand to file, ignoring it escalates enforcement and exposes you to the higher repeat-filer penalties. Acting on the demand quickly stops the situation from getting worse.
- 9File even if you cannot pay yetFiling stops the late-filing penalty from growing, even when the balance is not paid. Once the real amount is known, the CRA will often agree to a payment arrangement.
- 10Set up ongoing bookkeeping after the catch-upGetting current is only half the job. Monthly bookkeeping with commission tracking, plus tracked deadlines, keeps the brokerage current going forward so you never face penalties and a notional assessment again.
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Get Your Brokerage Caught Up.
Late and multi-year corporate tax filing for real estate brokerages and agencies from $400 per return. Commission and split rebuild, HST, agent reporting catch-up, penalty relief. AFFORDABLE flat fees.