Catch-Up Corporate Tax Filing for Construction Companies
Behind on your construction company's T2 returns? We file late and multi-year corporate tax for contractors, subcontractors and developers across Ontario, rebuild the bookkeeping behind it including holdbacks and work-in-progress, and pursue penalty relief where it applies. From $400.
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Construction Companies Fall Behind When the Jobs Never Stop
When you are running crews, chasing progress payments and managing holdbacks across several jobs, the T2 is the easy thing to push to next month. 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 holdbacks and work-in-progress that change the real numbers. It is one of the most common situations we see in construction, and it is fixable.
We get contractors current. We rebuild the bookkeeping behind the missing years, including holdbacks receivable and payable and work-in-progress, file each late T2 correctly, reconcile your HST and payroll, and pursue taxpayer relief on penalties and interest where the facts support it. Catch-up corporate tax filing for construction companies, from $400 per return. AFFORDABLE flat fees.
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Catch-Up Corporate Tax Filing Services for Construction
Late T2 Filing
Overdue construction 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.
Holdback & WIP Rebuild
We reconstruct holdbacks receivable, payable and work-in-progress for each missing year.
HST Catch-Up
Outstanding HST returns filed and reconciled, including holdback timing.
Payroll & T5018 Catch-Up
Behind on payroll, T4s or subcontractor T5018s? We bring them current.
Penalty Relief & CRA Demands
We respond to CRA demands and pursue taxpayer relief on penalties and interest.
How We Get Your Construction Company Caught Up
A complete catch-up process so every outstanding year is filed accurately, with holdbacks and WIP handled correctly. AFFORDABLE flat fees.
Review What Is Outstanding
We start by finding out exactly how far behind the company 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, payroll and T5018 accounts 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 the Books, Holdbacks and WIP
A construction return is only as accurate as the holdbacks and WIP behind it.
- Reconstruct revenue from progress billings, contracts and bank deposits.
- Rebuild holdback receivable and payable ledgers for each job.
- Record work-in-progress so unbilled and uncollected work is captured.
- Rebuild costs from supplier, subcontractor and bank records.
- 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.
- Holdbacks, WIP, CCA and carryforward 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, Payroll and T5018
Construction almost always has HST, payroll and subcontractor reporting tied to the missing years.
- Outstanding HST returns prepared with correct holdback timing.
- Input tax credits on materials and subtrades captured.
- Payroll remittances and T4s brought current where behind.
- Subcontractor T5018 slips prepared and filed where required.
- 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 company 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 holdback and WIP tracking.
- Calendar every T2, HST, payroll and T5018 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 construction file.
Free Construction Catch-Up Tax Consultation
Free Construction Catch-Up Tax Consultation
Case Studies: Construction Catch-Up Tax Filing
General Contractor, Brampton
A general contractor was three years behind on its T2 returns with a CRA demand letter and a notional assessment that ignored its holdbacks entirely. We rebuilt the holdback and WIP ledgers, filed all three years, and the real numbers were far lower than the CRA estimate. We then applied for relief on the penalties. Get Started →
Mechanical Subcontractor, Mississauga
A subcontractor had two unfiled years and had never tracked the holdbacks held back from it, so its income was overstated. We rebuilt the holdback receivable ledger, filed the back HST and T2 returns with the correct holdback timing, and brought the sub current and compliant.
Developer, Vaughan
A developer had stopped filing when the bookkeeper left, accumulating four years of unfiled returns with WIP and progress billings never reconciled. We reconstructed each year, filed them in sequence, and set up ongoing bookkeeping so the company never falls behind again.
Trades Contractor, Toronto
A trades contractor facing a CRA payroll and T2 review was behind on both, plus outstanding subcontractor T5018 slips. We brought payroll and T5018 reporting current, filed the outstanding T2 returns, and represented the owner through the review, which closed without further assessment.
What Filing Late Costs a Construction Company
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 ignoring holdbacks and far too high | 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 construction 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.
Construction Catch-Up Filing by Number of Years Behind
| Years Behind | What We Do | Typical Priority |
|---|---|---|
| 1 year behind | Rebuild one year with holdbacks and WIP, 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, payroll and T5018 | 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 contractors current regardless of how many years have piled up.
What Our Construction Catch-Up Filing Includes
| Service | What We Do |
|---|---|
| Outstanding review | Full check of which T2, HST, payroll and T5018 filings are missing. |
| Bookkeeping rebuild | Reconstruct revenue, costs, holdbacks and WIP 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 correct holdback timing, ITCs captured. |
| Payroll & T5018 catch-up | Source deductions, T4s and subcontractor T5018s brought current. |
| CRA demands | Responses to demands to file and notional assessments. |
| Penalty relief | Taxpayer relief or VDP applications where the facts support them. |
| Going-forward setup | Ongoing bookkeeping with holdback and WIP tracking so it never recurs. |
Is Your Construction Company Behind on Corporate Tax?
- You have one or more unfiled T2 returns for your construction corporation
- You received a CRA demand to file or a notional assessment
- Your bookkeeping is incomplete or was never finished for past years
- Your holdbacks receivable and payable were never properly tracked
- Your work-in-progress was never reconciled
- You have outstanding HST returns for the same periods
- You are behind on payroll remittances, T4s or subcontractor T5018s
- You stopped filing when a bookkeeper or accountant left
- You are worried the penalties and interest are growing
- You cannot get bonding or financing because your filings are not current
- You want the real numbers filed, not a CRA estimate
- You want one firm to handle the whole catch-up
Get Your Construction Company Current. From $400 per Return.
Late T2, HST and payroll catch-up, plus penalty relief. 30-Day Money-Back.
Why Contractors Choose Gondaliya CPA for Catch-Up Filing
Construction Specialists
Holdbacks, WIP, progress billing, subcontractors and WSIB.
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.
Construction Catch-Up Filing Pricing
| Service | Fee | Includes |
|---|---|---|
| Late T2 corporate return (per year) | From $400 | One outstanding construction 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: Construction Catch-Up Tax Filing
Meet Your Construction Catch-Up Tax Specialists
Sharad Gondaliya, CPA
Founder & Managing Director
Gondaliya CPA Professional Corporation
Sharad leads multi-year catch-up filing for construction companies, handling late T2 returns, holdbacks, WIP, CRA demands, notional assessments and taxpayer relief across Ontario.
Vandana Goel, CPA
Senior Accountant
Gondaliya CPA Professional Corporation
Vandana rebuilds construction bookkeeping for the missing years, reconstructing holdback ledgers, work-in-progress, HST and payroll so each return is accurate.
What Our Clients Say
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10 Smart Strategies for a Construction Company Behind on Tax
If your construction company 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.
- 2Rebuild holdbacks and WIP before you fileA construction return is wrong without holdbacks and work-in-progress. Reconstructing them first means you file the real taxable income, not an inflated estimate that ignores money not yet collected.
- 3Record holdbacks receivable and payable separatelyHoldbacks held back from you are not yet income, and holdbacks you owe subtrades are not yet an expense paid. Splitting them correctly across each catch-up year fixes both your income and your HST timing.
- 4Capture every input tax creditThe HST you paid on materials, equipment, fuel and subtrades offsets the HST you collected. Claiming every credit across the catch-up periods directly reduces the HST balance you owe.
- 5Replace notional assessments with real returnsIf the CRA estimated your tax because you did not file, that estimate almost always ignores your holdbacks and is far too high. Filing the accurate return replaces the estimate and usually lowers the balance significantly.
- 6Apply losses across the catch-up yearsA loss in one year can be carried to another to reduce tax. Filing the years in sequence lets non-capital losses, CCA on equipment and other balances be applied correctly so you do not overpay.
- 7Bring T5018 subcontractor reporting currentMissing T5018 slips are a common construction gap that draws CRA attention. Filing the outstanding slips alongside the T2s keeps your subcontractor reporting clean and reduces audit risk.
- 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, which also helps with bonding.
- 10Set up ongoing bookkeeping after the catch-upGetting current is only half the job. Monthly bookkeeping with holdback and WIP tracking, plus tracked deadlines, keeps the company current going forward so you never face penalties and a notional assessment again.
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Get Your Construction Company Caught Up.
Late and multi-year corporate tax filing for construction companies from $400 per return. Holdback and WIP rebuild, HST, payroll and T5018 catch-up, penalty relief. AFFORDABLE flat fees.