Corporate Year-End Checklist
90+ items covering revenue review, salary-dividend optimization, bonus accrual (180-day rule), shareholder loan cleanup, CCA and Immediate Expensing, HST reconciliation, payroll year-end, holdco planning, SR&ED and compliance. Free PDF download.
Download the Complete PDF Checklist (Free)
Printable 3-page checklist with 90+ items, key deadlines table and status tracking columns. Enter your email below.
What This Checklist Covers
12 sections covering every year-end task for Canadian corporations. Use this checklist 2 to 3 months before your fiscal year-end to maximize deductions, minimize tax and avoid CRA penalties.
| # | Section | Items | Key Actions |
|---|---|---|---|
| 1 | Revenue and Income Review | 7 | Reconcile revenue to HST returns. Record A/R. Review inter-company charges. Convert foreign income. |
| 2 | Expense Review and Optimization | 10 | Accrue unpaid expenses. Separate meals (50%). Confirm vehicle logbook. Write off bad debts. |
| 3 | Salary-Dividend Optimization | 6 | Calculate optimal split. Confirm RRSP room created. Apply EI exemption for 40%+ shareholders. |
| 4 | Bonus Accrual (180-Day Rule) | 6 | Declare bonus by resolution. Calendar the 180-day payment deadline. Calculate payroll deductions. |
| 5 | Shareholder Loan (Section 15(2)) | 7 | Review balance. Identify personal expenses. Plan repayment before second year-end deadline. |
| 6 | CCA, Immediate Expensing and Assets | 8 | List purchases and disposals. Claim Immediate Expensing ($1.5M limit). Consider pre-year-end equipment purchases. |
| 7 | HST/GST Reconciliation | 6 | Reconcile HST collected vs reported. Review Quick Method. File final return. |
| 8 | Payroll Year-End | 8 | Reconcile payroll to GL. Prepare T4/T4A/T5018. Review taxable benefits. File ROEs. |
| 9 | Holdco and Corporate Structure | 6 | Review retained earnings ($200K holdco trigger). Calculate passive income ($50K SBD erosion). Declare inter-company dividends. |
| 10 | SR&ED and Tax Credits | 5 | Identify eligible R&D expenditures. Track 18-month absolute deadline. Review provincial credits. |
| 11 | Insurance, Compliance and Governance | 7 | File annual return. Renew insurance. Confirm WSIB/EHT. Update minute book. |
| 12 | Next Year Planning | 7 | Set new salary-dividend split. Calendar deadlines. Plan capital purchases. Schedule CPA meeting. |
Critical Year-End Deadlines
Missing any of these deadlines costs thousands. The checklist tracks each one.
| Action | Deadline | Consequence if Missed |
|---|---|---|
| Tax payment | 2 months after year-end (3 for eligible CCPCs) | Interest at prescribed rate + 4% compounded daily |
| Bonus payment (if accrued) | 180 days after year-end | Entire bonus deduction denied for the year |
| Shareholder loan repayment | End of fiscal year following the loan year | Full balance included in personal income (s.15(2)) |
| T2 filing | 6 months after year-end | 5% of unpaid tax + 1% per month (max 12 months) |
| T4/T4A slips | Last day of February | $25/day per slip (min $100, max $2,500) |
| SR&ED (T661) | 18 months after year-end | Entire claim forfeited permanently. No extensions. |
The 180-Day Bonus Rule Is the Most Commonly Missed Deadline. A $50,000 bonus accrued at year-end but not paid within 180 days is completely non-deductible. The corporation loses the $50,000 deduction ($6,100 minimum tax cost at 12.2%). The checklist includes a calendar prompt for every deadline. Corporate Tax Guide →
Checklist Preview: Top 5 Most Costly Year-End Mistakes
The difference between the right split and the wrong split is $10,000 to $30,000 per year in combined tax savings plus RRSP room creation. A shareholder taking 100% dividends at $200,000 creates $0 in RRSP room. A 60/40 salary-dividend split creates $72,000 in cumulative RRSP room. The checklist prompts you to model the optimal split based on your actual income before year-end.
A year-end bonus must be declared by directors' resolution before year-end AND paid within 180 days. If the bonus is accrued but not paid on time, the entire deduction is denied. On a $50,000 bonus: $6,100 in lost tax savings at the 12.2% SBD rate. The checklist includes the exact payment deadline for your fiscal year-end.
Personal withdrawals from the corporation accumulate in the shareholder loan account. If the balance is not repaid by the end of the next fiscal year, CRA includes the entire amount in your personal income under section 15(2). A $50,000 shareholder loan balance triggers $26,765 in personal tax. The checklist prompts a review of the balance and repayment plan.
A $120,000 equipment purchase made one day before year-end qualifies for Immediate Expensing in the current year ($120,000 deduction). The same purchase made one day after year-end delays the deduction by 12 months. At 12.2%: $14,640 in tax savings delayed by a full year. The checklist prompts you to evaluate pre-year-end capital purchases.
The SR&ED claim must be filed within 18 months of fiscal year-end. There are no extensions. A tech company with $500,000 in eligible expenditures that misses the deadline forfeits $135,000 in credits permanently. The checklist tracks the exact date.
Who Should Use This Checklist
| Business Type | Key Sections to Focus On |
|---|---|
| Owner-managed corporations (all industries) | Salary-dividend split, shareholder loan, bonus accrual, CCA, HST reconciliation, payroll year-end |
| Construction companies | T5018 filing, WSIB clearance, subcontractor documentation, Immediate Expensing on equipment |
| Technology and SaaS companies | SR&ED deadline tracking, revenue recognition, zero-rated HST, stock option documentation |
| Medical and dental professional corporations | OHIP reconciliation, associate compensation review, holdco dividends, LCGE share structure |
| Restaurants | Food cost reconciliation, tip reporting, HST on prepared food, payroll for seasonal staff |
| Trucking companies | IFTA year-end reconciliation, fleet CCA, cross-border HST, owner-operator documentation |
| Real estate investors | Capital gains vs. business income classification, CCA on rental properties, holdco dividends |
| Multi-corporation groups | Associated corporation SBD allocation, inter-company dividends, passive income SBD erosion |
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