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Gondaliya CPA

Corporate Tax Filing Experts

Tax Accountant for Forestry Companies in Ontario and Across Canada

We treat Crown timber licence stumpage on your harvesting as a deductible cost of the wood cut and match it to the volumes scaled, value your cut and decked logs as inventory, capitalize your forest-access roads and carry silviculture and reforestation costs, put your feller bunchers, skidders, forwarders and log trucks in the right CCA class, file your T5018 slips on the contract loggers and haulers you pay, claim the off-road fuel-tax rebate on your coloured diesel, and plan the tax on your company. Whether you run a logging and harvesting contractor, a timber-harvesting company, a woodlot and forest-management operator, or a log hauling and forwarding company, we handle the stumpage, log-inventory and equipment accounting, the HST on harvesting with full input tax credits, the seasonal crew payroll with WSIB at the forestry rate, and plan the salary, dividends and eventual sale of your company — with AFFORDABLE flat fees.

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AFFORDABLE Forestry Company Tax Accountant

A forestry company harvests timber, and its accounting is driven by Crown wood, heavy iron and season. Harvesting on Crown land runs on a timber licence with stumpage charges — Ontario’s Forestry Futures charge and the residual-value charge — a deductible cost of the wood cut that has to be matched to the volumes you scale. Your cut and decked logs are inventory valued under section 10 of the Income Tax Act, your feller bunchers, skidders, forwarders and log trucks are big-ticket capital assets, and your forest-access roads, silviculture obligations, fuel and crews all have to be costed and classed. That is why you need a forestry accountant who knows the trade. At Gondaliya CPA, we specialize in stumpage, log-inventory and equipment bookkeeping and corporate tax planning for forestry companies, providing AFFORDABLE flat-fee support that keeps you CRA-compliant and stops you paying more tax than you owe.

As a timber-harvesting and log-hauling accountant, we work with logging and harvesting contractors, timber-harvesting companies, woodlot and forest-management operators, and log hauling and forwarding companies across Ontario, with year-round support rather than a once-a-year scramble. We tell you plainly what you can deduct, what you cannot, and where the real profit sits on each block harvested and each load hauled.

Let us handle the numbers so you can focus on the work that actually pays you.

Gondaliya CPA team - accounting and tax services for forestry companies

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Accounting That Understands How a Forestry Company Actually Works

Running a forestry company comes with financial pressures a desk-bound business never faces. You harvest Crown wood under a licence with stumpage charges, you carry cut and decked logs as inventory, you run feller bunchers, skidders, forwarders and log trucks worth six figures each, and your season is dictated by frozen-ground winter access and spring break-up. At Gondaliya CPA, we understand the financial reality of a forestry company and provide practical, trade-focused solutions across the GTA and all of Ontario.

💰

Stumpage & Licences

Crown timber stumpage — the Forestry Futures and residual-value charges — is a deductible cost of the wood cut, matched to the volumes you scale, not the invoice date.

💵

HST on Harvesting

Your timber harvesting, log sales and log-hauling are all taxable at 13%, and the input tax credits on machines, fuel and parts are yours to claim back.

📈

Logs & T5018

Your cut and decked logs are section 10 inventory, and you file T5018 slips on the contract loggers and haulers you pay.

🛡

Equipment, Crews & Cash

Your feller bunchers, skidders and log trucks depreciate by CCA class, your operators run on payroll at the forestry WSIB rate, and CRA watches cash sales closely.

Stay Compliant and Minimize Your Forestry Company Tax

For a forestry company, staying onside with CRA and WSIB and paying the least legal tax are the same job. We keep every filing on schedule while claiming every stumpage, equipment and fuel dollar the T2 allows, so nothing is missed and nothing invites a reassessment.

📋

HST, WSIB & Stumpage

Your timber harvesting, log sales and log-hauling are all taxable at 13% HST, so there is no exempt line to hide behind, and WSIB registration and premiums in the forestry rate group — one of the highest in the province — are mandatory on your crew wages from the first day you hire. Crown timber licence stumpage, the Forestry Futures and residual-value charges, is a deductible cost of the wood cut that must be matched to the volumes scaled. Getting HST, WSIB and stumpage documentation right protects the company from reassessment and from disputes over cost of wood.

CRA Obligations for Forestry Companies

Staying compliant with CRA means more than one return a year. We manage HST on harvesting and hauling, cut and decked log inventory under section 10, Crown stumpage and licence charges matched to volumes scaled, T5018 subcontractor slips, payroll source deductions on the PD7A remittance, and the off-road fuel-tax rebate on your coloured diesel. By monitoring the areas CRA reviews most often on cash-intensive resource files, we reduce your audit exposure and keep your corporation financially sound.

📈

Year-End Deliverables for Forestry Companies

At year-end, a forestry corporation needs a proper trial balance and financial statements that carry cut and decked log inventory, stumpage and licence liabilities, capitalized forest-access roads, feller bunchers, skidders, forwarders and log trucks, plus a T2 with GIFI that ties to your HST returns. Where a lender is involved, you also need CPA-compiled financial statements for equipment financing. Our team prepares every deliverable on time and in compliance, so your file is audit-ready and financing-ready.

Accounting & Tax Experts for Forestry Companies

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Why Choose Our Accounting Services for Forestry Companies?

1
🎯

Tax Planning — Equipment & Fleet Expertise

We know the trade: feller bunchers, skidders and forwarders in Class 38 at 30%, log trucks in Class 10 at 30%, small tools under $500 in Class 12 at 100%. We match stumpage to volumes scaled and protect the $500,000 Small Business Deduction.

2
💳

Consulting — Stumpage, Log-Inventory & Equipment Bookkeeping

Our bookkeeping matches Crown stumpage to the volumes scaled, values your cut and decked logs under section 10, and capitalizes your forest-access roads. We cost each harvest block so you see the real margin and tie HST to revenue.

3
🛡

CRA Representation — Cash-Sale & Inventory Audit

When CRA reviews your cash log sales, your log inventory, or your HST on harvesting and hauling, we prepare the response, reconcile WSIB, and pursue relief on Form RC4288 where penalties came from a prior error.

4
🏢

Bookkeeping — Payroll, Fuel Rebate & Sale

We run your operator and crew payroll with WSIB at the forestry rate, recover the off-road fuel-tax rebate, and get you ready to sell. We model the profit level where incorporating pays off and handle the eventual disposition of your company.

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Forestry Company Tax and Accounting Services in Ontario

📄

Corporate Tax Filing (T2) for Forestry Companies

Professional T2 preparation with Schedule 8 CCA on your feller bunchers, skidders, forwarders and log trucks, cut and decked log inventory and Crown stumpage, and CRA compliance on every line.

💳

Bookkeeping & Accounting for Forestry Companies

Stumpage, log-inventory and equipment bookkeeping with financial statements, clean records, and monthly reporting built for a forestry company.

💵

Payroll Services for Forestry Companies

Operator and crew payroll with WSIB in the forestry rate group, PD7A remittances, T4s, T5018 slips, and off-road fuel-tax rebate tracking.

🧾

GST/HST Filing for Forestry Companies

AFFORDABLE HST filing on harvesting and hauling with full input tax credits on machines, fuel, parts and culverts, matched to your T2 to avoid CRA penalties.

📈

Tax Planning for Forestry Companies

Smart tax planning to protect the Small Business Deduction, match stumpage to volumes scaled, time equipment purchases, and plan salary, dividends and sale.

Corporate Catch-Up Filing for Forestry Companies

File overdue T2 and HST years, rebuild missing harvest, log-sales and stumpage records, and get back into CRA compliance with accurate catch-up support.

🛡

CRA Audit Resolution for Forestry Companies

Expert support for cash-sale, log-inventory, stumpage and HST audits, with indirect-verification-of-income reviews handled with confidence.

📊

CPA Financial Statements (Notice to Reader) for Forestry Companies

CPA-compiled financial statements that equipment lenders and banks accept for your forestry corporation.

🏢

Incorporation Services for Forestry Companies

Full incorporation including NUANS, articles, share structure, and the section 85 rollover from your unincorporated forestry business.

📒

Catch-Up Bookkeeping Services for Forestry Companies

Months or years of stumpage statements, log-buyer settlements and equipment invoices reconstructed and reconciled, so your cut and decked log inventory and cost of wood are finally accurate.

🌐

US Corporation & LLC Tax Filing for Forestry Companies

Cross-border filing for forestry companies selling logs or lumber into the US or operating under a US parent, covering 1120/1120-F returns, treaty positions and FBAR reporting.

📜

Voluntary Disclosure Program for Forestry Companies

Come forward on unreported cash log sales, roadside-deck income or missed HST before CRA calls, cancelling penalties and easing interest through a Voluntary Disclosures Program application.

Accounting & Tax Services Tailored for Forestry Companies

Real, practitioner-level CPA expertise for logging and harvesting contractors, timber-harvesting companies, woodlot and forest-management operators, and log hauling and forwarding companies across Ontario — built for how a forestry company actually runs.

  • We prepare your T2 with GIFI on Schedule 100 and Schedule 125, splitting timber-harvesting and log-hauling revenue onto their correct lines, so CRA’s automated matching never bills tax on a $700,000 log-sales file it misreads.
  • We claim capital cost allowance on Schedule 8 with your feller bunchers, skidders and forwarders in CCA Class 38 at 30% and your log trucks in Class 10 at 30%, so a $310,000 feller buncher is never stranded in the wrong pool.
  • We treat Crown timber licence stumpage — Ontario’s Forestry Futures charge and residual-value charge — as a deductible cost of the wood cut, matching $80,000 of stumpage to the volumes scaled rather than expensing it against the wrong year.
  • We value your cut and decked logs as inventory under section 10 of the Income Tax Act at the lower of cost or net realizable value, so a $95,000 roadside deck of logs is not expensed before it is sold and scaled.
  • We capitalize your forest-access roads and bridges rather than expensing them, and carry silviculture and reforestation obligations correctly, so a $60,000 access-road build is depreciated over time instead of distorting a single harvest season’s profit.
  • We sync your log-scaling and equipment data to QuickBooks Online or Xero so every harvest block posts labour, fuel and machine hours to the right account, giving the real margin on a $500,000 season and the six years of records section 230 requires.
  • We track your cut and decked log inventory in the ledger and reconcile it to scaled volumes at year-end, so cost of wood on your T2 reflects only logs actually sold, not $50,000 of timber still decked at roadside.
  • We match Crown stumpage — the Forestry Futures and residual-value charges — to the volumes scaled each period, because expensing an $80,000 stumpage invoice against the wrong season overstates one quarter’s profit and understates the next.
  • We capture every fuel, parts and repair invoice through Dext and reconcile monthly, so the 13% HST input tax credit on diesel, culverts and machine parts is never lost to a missing ticket and you recover credits most operators leave unclaimed.
  • We separate stumpage-bearing Crown harvest revenue from log-hauling and silviculture-contract revenue in your chart of accounts, so you see which stream carries the margin; on one operator this revealed $32,000 of hauling billed below cost.
  • We set up operator and crew payroll in Wagepoint, withholding income tax, CPP and EI and remitting on the PD7A by the 15th of the following month, so a busy cutting season never eats CRA’s 10% late-remittance penalty on source deductions.
  • We register and reconcile your WSIB coverage in the forestry rate group, which carries one of the highest premium rates in the province, and file on assessable wages, so an unregistered company avoids retroactive premiums and penalties reaching five figures.
  • We settle the RC4110 employee-versus-contractor question on your log haulers and equipment operators, because misclassifying a $70,000 owner-operator as a subcontractor exposes you to back CPP, EI and penalties when CRA reviews the working relationship.
  • We prepare and file T5018 Contract Payment Reporting slips for the contract loggers and haulers you pay, avoiding the $100-per-slip penalty CRA applies to late or missing filings and keeping your subcontractor costs defensible on review.
  • We run your seasonal crew payroll and issue T4s and Records of Employment at freeze-up, filing accurate ROEs on a $70,000 winter layoff so operators claim EI cleanly and your company avoids CRA and Service Canada penalties on late slips.
  • Timber-harvesting revenue, log sales and log-hauling are all fully taxable at 13% HST in Ontario, with no exempt line to hide behind, so we set the right code on every invoice, because CRA will assess the tax you should have collected.
  • You must register once taxable revenue passes the $30,000 small-supplier threshold across four consecutive quarters, and we track the exact quarter you cross so CRA cannot assess back-tax on harvest and hauling work where you never charged HST.
  • We claim the input tax credits your machines, log trucks, diesel, parts and culverts carry, recovering the 13% HST on line 108 — on one company we recovered $18,500 of ITCs on a $310,000 feller buncher and a season of fuel.
  • Beyond HST, we file the off-road fuel-tax rebate on the coloured diesel your skidders, forwarders and loaders burn off public roads, so a company running machines all season recovers the fuel tax instead of leaving $14,000 with the government.
  • We reconcile the HST on your returns to the revenue on your T2 every filing period, because CRA’s matching program compares the two and a company whose figures disagree by even $5,000 is among the fastest files pulled for a costly audit.
  • We set the salary-versus-dividend mix for the owners, paying enough T4 salary to build RRSP room while the balance flows as dividends, so combined tax stays near the 12.2% Ontario small-business rate; on one owner this deferred $26,000 of tax.
  • We keep your active income under the $500,000 Small Business Deduction limit using section 125, and we watch CRA’s associated-corporation and passive-income rules that grind the limit toward the higher general corporate rate.
  • We time your feller buncher, skidder and log-truck purchases before your fiscal year-end so the half-year rule and the 30% Class 38 and 30% Class 10 rates give the largest first-year deduction against a profitable cutting season.
  • We match Crown stumpage and licence charges to the log volumes scaled so the deductible cost of wood cut lands in the right year, keeping taxable income accurate on a season where $80,000 of stumpage should follow the wood, not the invoice date.
  • We plan at least two years ahead so your shares qualify for the $1.25M Lifetime Capital Gains Exemption, purifying the company of non-active assets so selling your harvesting business defers tax CRA would otherwise collect on the gain.
  • We reconstruct harvest revenue, log sales and machine costs from bank deposits, log-buyer settlement statements and your scaling records across your unfiled years, rebuilding the six years of records section 230 requires so CRA cannot arbitrarily assess six figures of income.
  • Late filing costs 5% of the balance owing plus 1% per month up to twelve months, so we file your oldest unfiled T2 first to stop the penalty compounding and limit the arrears interest CRA charges your corporation.
  • We file the missing HST returns and reconcile the 13% you charged on harvest and hauling work against what you actually remitted, so tax you collected is accounted for and CRA cannot assess back tax with interest on the gap.
  • We rebuild the undepreciated capital cost pools across the unfiled years so missed CCA on Class 38 feller bunchers, Class 10 log trucks and roads is recovered; on one file this restored $22,000 of depreciation CRA would otherwise have kept.
  • We file a Voluntary Disclosures Program application on Form RC199 before CRA contacts you, because a disclosure accepted under the general program cancels penalties in full and gives 50% interest relief on the older years.
  • When CRA opens an audit, we manage the whole file and answer the stumpage, log-inventory and HST queries inside the deadlines, so a one-year review does not expand into a $200,000 reassessment across the 3 prior years CRA can reopen.
  • When CRA runs indirect verification of income on a cash-heavy operation, comparing bank deposits and lifestyle to reported harvest revenue, we prepare the source-and-application-of-funds reconciliation within the 30-day deadline, defending six figures of log sales CRA assumed were unreported.
  • We defend your stumpage and inventory positions when CRA challenges the timing, showing the cost of wood follows the volumes scaled; on one company we matched $80,000 of stumpage to logs sold, reversing an early reassessment.
  • We answer log-inventory and cost-of-wood reviews with the section 10 lower-of-cost-or-NRV valuation, scaling tickets and settlement records, because a deduction disallowed for missing records cannot be restored later, and one adjustment put $30,000 of wood cost back on the return.
  • We file the Notice of Objection within 90 days of a reassessment and pursue taxpayer relief on Form RC4288, cancelling penalties and interest that can top $15,000 where a prior accountant’s error caused them, protecting your right to the Tax Court.
  • We prepare the CSRS 4200 compilation engagement financial statements, the Notice to Reader an equipment lender and a bank require across two fiscal years before they approve the roughly $350,000 financing on a feller buncher and forwarder you need.
  • Your compiled statement of financial position presents cut and decked log inventory, equipment at net book value and the stumpage and licence liabilities, giving a lender the working-capital picture a bare T2 cannot, on a balance sheet carrying $95,000 of decked logs.
  • We build the statement of operations with harvest revenue, log-hauling revenue and cost of wood classified consistently across two years and tied to the T2 filed with CRA, so a lender approves the $350,000 equipment loan.
  • The CSRS 4200 communication discloses that no audit or review was performed, and without it a bank and the Business Development Bank of Canada reject the file and the operating credit worth $100,000 you need to carry your off-season float.
  • We deliver the compiled statements within 30 days of receiving your records and the year’s T2 figures, because a $350,000 equipment-financing or lease approval collapses when the lender’s conditional offer expires before the file is produced.
  • We incorporate your business under the Ontario Business Corporations Act, giving you limited liability and the roughly 12.2% Ontario small-business rate; on one owner incorporating saved about $24,000 a year against the personal rates an unincorporated logger carries.
  • We complete the section 85 rollover on Form T2057, transferring your machines, log trucks, inventory and goodwill into the corporation at elected amounts, deferring the capital gain and recapture that a straight sale of $310,000 of equipment would trigger.
  • We register your WSIB coverage in the forestry rate group before the first crew starts, because coverage is mandatory and the forestry rate is among the highest, so an unregistered owner faces retroactive premiums reaching five figures for up to 2 prior years.
  • We open the corporation’s CRA Business Number, HST and payroll accounts within the first 30 days, set the source-deduction remittance schedule, and close the old accounts so your company never double-remits HST on the same $50,000 of log sales.
  • We structure the share classes and set the first fiscal year-end up to 53 weeks after incorporation, so dividends can be split among family shareholders and the first T2 balance-due date is deferred, keeping roughly $8,000 of tax working in the company longer.
  • We rebuild months or years of neglected books from bank deposits, log-buyer settlement statements and scaling tickets, so a forestry company that let its records slide through three cutting seasons gets a clean ledger instead of a $600,000 shoebox of paper.
  • We reconstruct your cut and decked log inventory period by period and reconcile it to scaled volumes, so cost of wood on your caught-up statements reflects logs actually sold rather than $70,000 of timber still decked at roadside.
  • We recover the 13% HST input tax credits buried in unentered diesel, culvert and machine-parts invoices across the backlog, because a season of missing tickets can hide $15,000 of credits a lender-ready set of books would otherwise surface.
  • We match Crown stumpage — the Forestry Futures and residual-value charges — to the volumes scaled in each catch-up period, so profit is no longer distorted by an $80,000 stumpage invoice booked whenever it happened to land.
  • We rebuild your Class 38 and Class 10 equipment schedules and reconcile payroll and WSIB across the caught-up months, so your bookkeeping ties out and an accurate T2 can be filed without guessing at a lost year of activity.
  • When your forestry company sells logs or lumber across the border, we determine whether that US-source revenue creates a US filing obligation and prepare Form 1120-F, applying the Canada-US treaty so a $400,000 line of export sales is not taxed twice.
  • Where a US parent owns your Canadian harvesting operation, we handle the transfer-pricing documentation and Form T106 on the intercompany log and equipment charges, so CRA cannot reassess the margin shifted across the border on a six-figure related-party balance.
  • We claim treaty protection against a US permanent establishment when your crews or log trucks work into a bordering state, filing the treaty-based return positions that keep occasional US harvesting or hauling work from triggering full US corporate tax.
  • We manage the LLC hybrid-entity mismatch that traps many owners, coordinating the US and Canadian treatment so income taxed once in the US is not stranded, and we file the FBAR and the Form T1134 your foreign affiliate reporting requires.
  • We reconcile the US and Canadian returns so foreign tax credits actually land, ensuring the US tax paid on your cross-border lumber sales offsets Canadian tax on the same income rather than leaving $20,000 double-taxed and unrecovered.
  • We bring your company forward on unreported cash log sales or roadside-deck income before CRA opens a review, because a Voluntary Disclosures Program application accepted under the general program cancels the gross-negligence penalty that can reach 50% of the tax on hidden revenue.
  • We file your VDP submission on Form RC199 with a full income reconstruction, so a forestry company that under-reported $150,000 of log sales over several seasons corrects the record on its own terms instead of facing an arbitrary CRA net-worth assessment.
  • We disclose the HST you should have charged on harvesting and hauling but never remitted, cleaning up an unregistered or under-reported GST/HST account so the tax you collected is finally accounted for with penalties waived under the program.
  • We correct unfiled T5018 subcontractor slips and any unreported foreign log-export income through the same disclosure, sparing your company the $100-per-slip and gross-negligence penalties CRA would otherwise stack once it finds the gap on its own.
  • We confirm your disclosure is genuinely voluntary before CRA contacts you — the single condition that makes it valid — and secure the roughly 50% interest relief on the older years, turning a potential prosecution risk into a managed, penalty-free correction.

Forestry Tax & Equipment Check

Six quick questions on your Crown stumpage matching, your equipment CCA classes, your log inventory, your T5018 slips, the off-road fuel rebate and whether it is time to incorporate. No fee shown.

1. Are you matching Crown stumpage to the log volumes you scale?

2. Are your feller bunchers, skidders and forwarders in CCA Class 38?

3. Are you tracking your cut and decked log inventory at year-end?

4. Are you filing T5018 slips for the contract loggers and haulers you pay?

5. Are you claiming the off-road fuel-tax rebate on your coloured diesel?

6. Is your forestry company incorporated?

Free CPA Consultation for Forestry Companies

Case Studies: Forestry Company Accounting & Tax

Northern-Ontario Logging Contractor — Served From Ottawa

The problem: A northern-Ontario logging contractor served from our Ottawa office was depreciating its skidders and forwarders as ordinary Class 10 equipment rather than Class 38, and expensing Crown stumpage as it was invoiced instead of matching it to the logs actually scaled and sold. The off-road fuel-tax rebate on the coloured diesel burned in the bush had never been claimed. The result was a distorted cost of wood, misstated capital cost allowance, and thousands of dollars in fuel tax left with the government every cutting season.

What we did: We reclassified the feller buncher, skidders and forwarders to Class 38 at 30%, matched stumpage to the volumes scaled under section 10, and filed the outstanding off-road fuel-tax rebates for the open years.

The result:

  • Reclassified a $310,000 feller buncher to Class 38
  • Matched $80,000 of stumpage to logs scaled
  • Recovered the off-road fuel-tax rebate — a five-figure swing

Barrie Forestry Company — Incorporation & T5018

The problem: A Barrie forestry company was unincorporated, so strong harvest-season margins landed on the owner’s personal return at Ontario’s top 53.53% rate with no way to defer the surplus. The owner paid several contract loggers and log haulers through the year but had never filed a T5018, exposing the company to $100-per-slip penalties. Crown stumpage was expensed against the wrong periods, and the feller buncher and log truck sat in mismatched CCA pools, so both the tax bill and the compliance risk were higher than they needed to be.

What we did: We incorporated the company under the Ontario Business Corporations Act, moved the equipment and goodwill across on a section 85 rollover, applied the $500,000 Small Business Deduction so active income is taxed near 12.2%, and filed the outstanding T5018 slips.

The result:

  • Active income taxed near the 12.2% small-business rate
  • Filed prior-year T5018s, avoiding $100-per-slip penalties
  • Reclassified equipment to Class 38 and Class 10

Sudbury-Area Harvesting Company — Served From Toronto

The problem: A Sudbury-area harvesting company served from our Toronto office was lumping its cut and decked log inventory, forest-access road builds and silviculture obligations straight into expenses. That distorted seasonal profit badly — a heavy winter cutting season looked unprofitable while the following quarter, when the decked logs were finally sold and scaled, looked artificially strong. With frozen-ground access driving the whole schedule, the owner could not tell which blocks actually paid or plan cash for the spring break-up shutdown.

What we did: We set the cut and decked logs up as section 10 inventory, capitalized the forest-access roads so they depreciate over time, carried the silviculture obligations properly, and built seasonal reporting in QuickBooks that reserves HST and payroll cash through the cutting months.

The result:

  • Set ITA s.10 inventory on cut and decked logs
  • Capitalized forest-access roads instead of expensing
  • Seasonal reporting — clean, audit-ready books

Our Simple Process

How We Work With Forestry Companies

Know Exact Fees within 2 Minutes NOW

Our clear, efficient process ensures every step is transparent, building trust and long-term client relationships.

Here’s a simplified process approach:
Step 1

Kickoff (Document Request)

Collect prior T2 returns, cut and decked log inventory and scaling records, Crown timber licence and stumpage statements, equipment and log-truck list, forest-access road and silviculture costs, payroll records, and bank statements.

Step 2

First 30 Days (Cleanup & Setup)

Set up QuickBooks Online or Xero, integrate your scaling and fuel records, build stumpage, log-inventory, road and equipment schedules, classify CCA, and configure payroll and WSIB tracking.

Step 3

Monthly Close

Monthly reconciliations, receipt capture, harvest-block costing, HST on harvesting and hauling, and log-inventory tracking.

Step 4

Quarterly Planning Review

Salary and dividend mix, HST, log-inventory and stumpage review, off-road fuel rebate, and equipment purchase timing.

Step 5

Year-End Close & T2 Filing

Trial balance, financial statements with log inventory, stumpage and licence liabilities and capitalized roads, T2 with GIFI, and CRA preparation.

Get Your Forestry Company Taxes Done Right Today

Transparent Pricing for Forestry Companies

Affordable Pricing for Forestry Companies

Know Exact Fees within 2 Minutes NOW

We believe in clear, upfront pricing so you know exactly what to expect. All fees include HST.

  • Tax Preparation (Corporation) — From $400
  • Tax Return Filing (Corporation) — From $400
  • Tax Compliance Audit — FREE CRA audit support for our clients
  • Tax Strategy — FREE for our clients
  • Accounting Base Plan — From $100 per month
  • Bookkeeping Management — Free for our Accounting clients
  • Financial Reporting — Free for our Accounting clients
  • Business Formation — Flat $35
  • Incorporation Process — Flat $35
  • Entity Setup Assistance — Flat $35
  • Full-Service Payroll — From $125 per month

Payment is by Interac e-Transfer to info@gondaliyacpa.ca only. Security question: Not Applicable, as auto-deposit is enabled.

Meet Your Lead Forestry Company Accountant

Meet your lead forestry company accountant. As your trade and corporate tax adviser, you deal with the same two people every year.

Sharad Gondaliya CPA

Sharad Gondaliya, CPA

Principal

Bio

647-212-9559
sharad@gondaliyacpa.ca

Vandana Goel CPA

Vandana Goel, CPA

Accounting Specialist

Bio

647-250-0242
vandana@gondaliyacpa.ca

What Our Clients Say

1300+ five-star reviews from forestry company and resource-business owners across Ontario and Canada.

Serving Forestry Companies Across Ontario

Our CPA team provides specialized accounting and tax solutions for forestry companies throughout Ontario. We understand how Crown stumpage, log inventory, heavy-equipment CCA and seasonal access actually flow through a harvesting operation, what CRA looks at on a cash-intensive resource file, and how to put your log inventory and equipment fleet in the right place.

Toronto (ON)

55 Queen St E Ste 1205, Toronto, ON M5C 1R6, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Mississauga (ON)

2100 Camilla Rd #716, Mississauga, ON L5A 2J8

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Brampton (ON)

4 Starhill Crescent, Brampton, ON L6R 2P9, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Scarborough (ON)

24 Clementine Square, Scarborough, ON M1G 2V7, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Vaughan (ON)

19 Cabinet Crescent, Woodbridge, ON L4L 6H9, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Oshawa (ON)

210 Durham St, Oshawa, ON L1J 5R3, Canada

+1 (647) 212-9559

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Ottawa (ON)

2090 Neepawa Ave a314, Ottawa, ON K2A 3L6, Canada

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Etobicoke (ON)

60 Stevenson Rd #1601, Etobicoke, ON M9V 2B4, Canada

+1 (647) 212-9559

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Hamilton (ON)

70 Starling Dr, Hamilton, ON L9A 0C5, Canada

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Guelph (ON)

1155 Gordon St, Guelph, ON N1L 1S8, Canada

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Windsor (ON)

4387 Guppy Ct, Windsor, ON N9G 2N8, Canada

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North York (ON)

150 Graydon Hall Dr #912, North York, ON M3A 3B2, Canada

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Forestry Company Accounting & Tax FAQs

Should I incorporate my forestry company?
Incorporating gives you limited liability, which matters when logging carries real on-the-ground risk, plus a 12.2% Ontario rate on the first $500,000 of active income versus a personal rate up to 53.53% when unincorporated. The decision turns on whether you earn more than you withdraw, because that surplus is what a corporation lets you defer. When it makes sense, we handle the section 85 rollover of your equipment and goodwill on Form T2057.
Do forestry companies charge HST?
Yes. Timber harvesting, log sales and log-hauling are all fully taxable at 13% HST in Ontario. There is no exempt line for harvesting, so you charge HST on the full invoice. In return you claim input tax credits on the 13% you pay for machines, log trucks, diesel, parts and culverts, so only the tax on your value added reaches CRA. You must register once taxable revenue passes the $30,000 small-supplier threshold.
How is Crown stumpage treated?
Crown timber licence stumpage — in Ontario the Forestry Futures charge and the residual-value charge — is a deductible cost of the wood you cut. It is not a flat annual expense; it follows the timber, so it should be matched to the volumes you scale and to the logs actually sold. Booking a full stumpage invoice against the wrong period distorts profit. We match stumpage to scaled volumes so your cost of wood is accurate.
What CCA class is a skidder or feller buncher?
Power-operated movable forestry equipment — feller bunchers, skidders, forwarders, harvesters and loaders — is generally CCA Class 38 at 30%. Your log trucks are Class 10 at 30%, and small tools under $500 are Class 12 at 100%. The half-year rule limits first-year claims. Putting a six-figure machine in the right class matters, because the wrong pool strands depreciation and tax. We claim it all on Schedule 8.
How do I account for log inventory?
Your cut and decked logs on hand at year-end are inventory under section 10 of the Income Tax Act, valued at the lower of cost or net realizable value. Standing timber is not inventory, but once cut and decked at roadside it is. Expensing everything as you harvest overstates cost of wood and understates profit. We count and value log inventory at year-end so cost of wood reflects only logs actually sold and scaled.
Do I file T5018 for logging subcontractors?
Yes. If your company’s primary activity is construction-type work — and logging and forestry operations are included — and you pay subcontractors, you must file a T5018 Contract Payment Reporting slip and summary for each contract logger and hauler you pay. CRA charges a penalty starting at $100 per slip for late or missing filings. We prepare and file your T5018 returns on time so your subcontractor costs stay defensible.
Can I claim the off-road fuel-tax rebate?
Yes. The coloured (marked) diesel your skidders, forwarders, loaders and other machines burn off public roads qualifies for an off-road fuel-tax rebate, because that fuel is not used on the highway. Many operators never claim it and leave real money with the government every season. We reconcile your fuel purchases against machine use and file the rebate, recovering the tax on your off-road litres.
How are silviculture and forest-access road costs treated?
Forest-access roads and bridges are capital assets, not a one-time expense, so they are added to the appropriate class and depreciated over time rather than distorting a single harvest season. Silviculture and reforestation obligations are real costs tied to your licence and are recognized as they are incurred. We capitalize your roads and carry silviculture correctly so your profit reflects the true cost of the block.
How much corporate tax does a forestry company pay in Ontario?
An incorporated forestry company pays roughly 12.2% combined federal-provincial tax on the first $500,000 of active income under the Small Business Deduction in Ontario, with income above that at the general rate. You also charge 13% HST and pay WSIB at the forestry rate. Ontario does not levy a provincial logging tax — the federal logging-tax credit applies in provinces such as BC and Quebec — so your file deals with Crown stumpage instead.
What can a forestry company write off?
Your feller bunchers, skidders and forwarders are Class 38 at 30%, your log trucks Class 10 at 30%, all on Schedule 8. You also deduct Crown stumpage and licence charges matched to volumes scaled, operator wages, WSIB premiums, subcontractor costs, diesel, equipment repairs, capitalized forest-access roads, silviculture, insurance, plus a bad debt under paragraph 20(1)(p) where a buyer never pays. We put each asset in the right class so you are not under-claiming.
How do I handle seasonal operations and cash flow?
Forestry is seasonal, with much of the harvest driven by frozen-ground winter access and paused at spring break-up, while some costs and your own draws run all year. That swing is a leading reason resource corporations fall behind on HST and payroll remittances. We build a cash-flow plan that reserves HST and source deductions as logs are sold, times equipment purchases, and smooths owner pay through the off-season.
Are log haulers employees or contractors?
It depends on the working relationship, not the label. CRA weighs control, ownership of equipment, chance of profit and risk of loss on Form RC4110. An owner-operator who supplies his own log truck and hauls for several companies is usually a contractor; a driver in your truck on your schedule is usually an employee. Misclassifying a hauler exposes you to back CPP, EI and penalties. We review each relationship and file T5018 where required.
What accounting software works best for a forestry company?
We pair QuickBooks Online or Xero with Dext for receipt capture, and map your scaling, fuel and equipment records into the general ledger. That lets harvest revenue, log sales, log-hauling, stumpage and cost of wood post to the right accounts, with machine hours and fuel tracked for the off-road rebate. We set it up and maintain it so your HST, log inventory and year-end all tie out.

Related Industries We Serve

Accountant for Sawmills

  • Log purchases and finished-product inventory
  • Equipment CCA, HST and T5018
  • Corporate tax planning and financial statements

Accountant for Heavy Equipment Operators

  • Heavy-equipment CCA and financing
  • T5018, WSIB and crew payroll
  • Corporate tax filing and HST

Accounting for Small Businesses

  • Corporate tax planning for small businesses
  • Business tax filing and financial statements
  • Payroll and bookkeeping services

Accountant for Incorporated Businesses

  • T2 corporate returns and GIFI
  • Salary, dividend and SBD planning
  • Compilation statements and incorporation

Forestry Company Accounting & Tax Done Right.

T2 filing, HST on harvesting and hauling, Crown stumpage matched to volumes scaled, cut and decked log inventory, capitalized forest-access roads and silviculture, feller buncher, skidder, forwarder and log-truck CCA, the off-road fuel-tax rebate, and seasonal crew payroll with WSIB at the forestry rate under one roof. AFFORDABLE flat fees, no hourly billing. Licensed CPA Ontario. 1300+ five-star reviews. 30-Day Money-Back Guarantee.



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