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PricingService areasAll services →Unfiled Corporate Taxes? Overdue T2 Filing in Ontario
CPA-led overdue T2 filing, fixed price
Haven’t filed your corporate taxes in two years? It’s fixable. T-Ledgers, a CPA-led Ontario firm practising since 2020, rebuilds the books for every missing year, files each overdue T2 in the order that limits penalties, and checks whether the CRA’s Voluntary Disclosures Program can cut them. Fixed price, agreed before we start.
202 clients · $60 million in client revenue managed · 5.0 on Google · Led by Wajahat Ajmal, CPA, FCCA · Practising since 2020
- CPA-led by Wajahat Ajmal, CPA, FCCA (verify on CPA Ontario)
- Price matching, when agreed before you sign our proposal
- No surprise bills: the price is fixed before we start
- We reply mostly within one business day
- 24/7 receptionist, a real person answers
- Basic QuickBooks Online and Dext included when you move to a monthly plan
Quick answer: A corporation has to file a T2 return every year within six months of its year-end, even if it owes no tax. When a T2 is late and tax is owing, the penalty is 5% of the unpaid tax plus 1% for each full month late, up to 12 months, and interest runs daily. We rebuild the books for every missing year, file the T2s, and check whether the CRA’s Voluntary Disclosures Program can reduce the penalties.
Last updated: October 18, 2026
Reviewed by Wajahat Ajmal, CPA, FCCA. Official sources checked October 2026.
When is a T2 overdue?
A T2 is due six months after the end of the corporation’s tax year (Income Tax Act s.150(1)). Any tax owing is due earlier: two months after year-end, or three months for many Canadian-controlled private corporations that claim the small business deduction (s.157(1)). Every resident corporation has to file, including holding companies and corporations that were inactive or had no tax to pay.
← Swipe to compare →
| Year-end | Balance due | T2 due |
|---|---|---|
| December 31 year-end | End of February (end of March for an eligible CCPC) | June 30 |
| March 31 year-end | May 31 (June 30 for an eligible CCPC) | September 30 |
What filing late costs
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| Charge | How it works | Law |
|---|---|---|
| Late-filing penalty | 5% of the tax unpaid at the due date, plus 1% of it for each full month late, up to 12 months | ITA s.162(1) |
| Repeat late-filing penalty | 10% plus 2% a month, up to 20 months, if the CRA sent a formal demand to file under s.150(2) before the return was filed and the corporation was charged a late-filing penalty for any of the three previous tax years | ITA s.162(2) |
| Interest | The CRA’s prescribed rate, compounded daily on unpaid tax from the balance-due date, and on penalties | ITA s.161(1) and (11); s.248(11) |
The percentage penalties are based on unpaid tax, so a nil or refund year doesn’t attract them. Flat penalties can still apply. A T2 that had to be filed electronically but was filed on paper costs $1,000 (s.162(7.2)). Late information returns filed with the T2, such as the T106 or T1135, have their own penalties (s.162(7) and (10)). Large corporations also face a penalty based on their taxable capital (s.235). And if returns stay unfiled, the CRA can send a formal demand to file (s.150(2)) and assess the corporation on its own estimate (s.152(7)). Directors can also be held personally liable for unremitted payroll deductions and net GST/HST (ITA s.227.1; Excise Tax Act s.323).
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Together with a demand to file, this triggers the higher repeat penalty.
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VDP relief is highest when the CRA hasn't contacted you yet.
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Used to flag GST/HST registration (over $30,000).
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At risk: estimated total owing without VDP
$0
Potential VDP savings
$0
Red flags
Get your full breakdown
See the year-by-year numbers and the side-by-side VDP comparison. A CPA can review it with you.
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File late, no VDP
Tax
Penalties
Interest
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File through VDP
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Penalties
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| Period | Tax | Penalty | Interest |
|---|
Your catch-up price: from $1,800 per year + HST/GST, fixed
- Caught up in weeks, usually
- One written price, no surprise bills
- VDP application prepared by a CPA
Results are a range of about ±20% and ignore instalments, tax credits, the basic personal amount, losses and other deductions. 2026 personal tax brackets are applied to every year. Corporations: combined Ontario CCPC small business rate on the first $500,000 of 12.2% for tax years ending before July 1, 2026 and 11.2% after (9% federal + 3.2% or 2.2% Ontario; prorated by days for years spanning July 1, 2026); 26.5% above. T2 due 6 months after year-end; balance due 3 months after for CCPCs claiming the small business deduction (2 months for other corporations). Self-employed individuals: 2026 federal and Ontario brackets plus CPP/CPP2; return due June 15, but the balance is due April 30, so interest runs from April 30. GST/HST: net tax assumed at 13% of revenue less 50% input tax credits, annual filer. Late filing: 5% + 1%/month (max 12); with a demand to file and a late-filing penalty in any of the previous 3 years, 10% + 2%/month (max 20); GST/HST 1% + 0.25%/month (max 12). T1135: $2,500 per late return ($25/day, max 100 days, ITA s.162(7)). Interest: CRA prescribed rate of 7% (Oct–Dec 2026), compounded daily. VDP: unprompted applications normally get 100% penalty and 75% interest relief; prompted get up to 100% penalty and 25% interest relief; not available during an audit or investigation. Sources: CRA IC00-1R7, CRA prescribed rates, CRA 2026 tax brackets.
Want the penalty stopped from growing? A CPA can file and handle the CRA for you. Book a Free 30-Min Call
What a corporation can lose by not filing
- Dividend refunds: lost for a year if its T2 isn’t filed within three years after the year-end (s.129(1)).
- SR&ED claims: the claim form has to be filed within 12 months after the T2 due date, or the credit is lost (s.37(11)).
- Losses: to carry a loss back to the three previous years, the request has to be filed by the loss year’s T2 deadline (s.152(6)), and an unfiled loss year leaves the loss off the CRA’s records.
- Refunds and credits: a refund of overpaid tax is only paid if the T2 is filed within three years after the year-end (s.164(1)), and the CRA can hold refunds until the missing returns are in.
Haven’t filed corporate taxes in 1, 2 or 5+ years?
One year late
The T2 was due six months after year-end. If tax is owing, the late-filing penalty is 5% of the unpaid tax plus 1% for each full month late, up to 12 months (s.162(1)), and interest is charged daily on the unpaid tax and on the penalty. If no tax is owing, there’s usually no percentage penalty, but the return is still required, and flat penalties can still apply, such as $1,000 for a T2 that had to be filed electronically but was filed on paper (s.162(7.2)). We rebuild the year’s books and file it, usually together with the current year.
Two or three years behind
“We haven’t filed our corporate taxes in two years” is still very fixable. By now the CRA may have sent a letter or a formal demand to file. A formal demand matters: if the CRA sent a formal demand to file under s.150(2) before the return was filed and the corporation was charged a late-filing penalty for any of the three previous tax years, the repeat penalty is 10% of the unpaid tax plus 2% a month, up to 20 months (s.162(2)). A voluntary disclosure is still possible. If the CRA hasn’t sent the corporation a notice or request to file about the missing returns, it normally brings 100% penalty relief and 75% interest relief. If it has, the application is usually treated as prompted, and partial relief (up to 100% of penalties and 25% of interest) is still available unless an audit or investigation has started. We rebuild both years of books and GST/HST, then file the T2s together, years with tax owing first.
Five years or more, or the CRA has already assessed
The CRA can assess a corporation that hasn’t filed on its own estimate (s.152(7)), and that assessment stands unless it’s changed on objection, appeal or reassessment (s.152(8)). If it isn’t challenged, the CRA can start collecting 90 days after the notice of assessment. A large corporation can be required to pay half of the disputed amount even while it objects (s.225.1). A corporation has 90 days from the date of the notice of assessment to file an objection (s.165(1)). If that deadline is missed, the CRA can extend it if you apply within one year after it (s.166.1). Filing the real returns is usually the fastest way to replace an estimated assessment. If payroll deductions or GST/HST were also missed, directors can be personally liable for them. We rebuild every year from the bank and card statements, file the actual T2s, and deal with the CRA for you while the work is done.
Inactive corporation? Nil T2 returns
An inactive corporation still has to file a T2 for every tax year, even with no income, no sales and no tax to pay (s.150(1)). If the corporation still holds or owes anything, such as a bank balance or a shareholder loan, the nil T2 reports its balance sheet in GIFI format. A year in which the corporation was inactive with nothing to report doesn’t need the GIFI schedules.
- Nil T2: from $249 per return + HST/GST, for a year with no activity at all
- A year with any activity is a regular T2, and if its books aren’t done it’s priced as catch-up
- Closing the corporation? To dissolve voluntarily, an Ontario corporation files Articles of Dissolution through the Ontario Business Registry (OBCA ss.237–238). The Registry asks the Ministry of Finance for its consent automatically, and the CRA still expects final returns and a request to close the business number accounts. We’ll tell you what that involves for your corporation after a free review.
How we file overdue T2 returns
1. A free review of your CRA records
With your authorization, we see which years are filed and which are missing, and whether the CRA has sent a demand to file or an estimated assessment.
2. Rebuild the books
We bring the books current with catch-up bookkeeping: every bank and card account reconciled, the shareholder loan sorted out, and the GST/HST rebuilt alongside.
3. File each T2, in the right order
Each year gets a full T2 with its schedules, financial statements in GIFI format and Ontario Schedule 500, reviewed by a CPA. A year in which the corporation was inactive with nothing to report doesn’t need the GIFI schedules. Years with tax owing go first, because the monthly penalty stops growing once a return is filed.
4. Check the Voluntary Disclosures Program
If the CRA hasn’t sent the corporation a notice or request to file about the missing returns, a voluntary disclosure normally brings 100% penalty relief and 75% interest relief. A general education letter doesn’t change that. If it has, the application is usually treated as prompted. Partial relief (up to 100% of penalties and 25% of interest) is still available unless an audit or investigation has started.
5. Stay current
Once you’re caught up, we file each T2 on time and can keep the books current with monthly bookkeeping, so the backlog doesn’t come back.
Overdue T2 pricing
← Swipe to compare →
| Service | Price |
|---|---|
| Catch-up for each missing year (books not done) | ✓From $1,800 per year: the bookkeeping, the GST/HST returns and the T2 for that year included |
| T2 only, when the books are already done | ✓From $800 per return, only for corporations whose books for the year are complete and reconciled |
| Nil T2 (no income or activity) | ✓From $249 per return |
| Personal T1 returns for the owners | Quoted separately |
| Voluntary disclosure, if it fits | Quoted after a free review |
CAD, + HST/GST. If a missing year’s books aren’t done, that year is priced as catch-up, not as a T2-only return. You get one fixed price in writing before any work starts. See corporate tax and plans and pricing.
Real catch-up cases
A corporation two years behind. “Our corporation was 2 years behind on filings and Waji and his firm got all the work done in a timely manner, as promised.” Dan, Google review
Five years of books and taxes, with CRA demand letters. “CRA was on our backs with demand letters and a self-assessment! Our books and taxes were not done for 5 years. We contacted Wajahat, and his team completed the work within 1 month and got the taxes filed!” Verified client review on Clutch, October 2024
More case studies: catching up years of unfiled taxes · a contractor’s $45,000 CRA bill · picking up from a previous accountant
Why owners choose T-Ledgers for overdue T2s
T-Ledgers is a CPA-led accounting firm practising since 2020, led by Wajahat Ajmal, CPA, FCCA. We have worked with 202 clients, with a combined $60 million in client revenue, and catch-up and CRA clean-up work is a core part of what we do.
- CPA-led: Wajahat Ajmal, CPA, FCCA, reviews every T2 we file
- Books, T2, GST/HST and payroll filings from one team, so the numbers agree
- A fixed price agreed up front, never an hourly bill
- A 24/7 receptionist, so a real person answers
- Remote across Ontario, with offices in Etobicoke and Mississauga
Related: corporate tax · T2 corporate tax return guide · corporation tax filing deadline · back tax filing · CRA penalty and VDP calculator · case study: GST/HST and T2 together
Frequently asked questions
Do I have to file a T2 if my corporation had no income?
Yes. Every resident corporation has to file a T2 every year, even if it was inactive or has no tax to pay. A nil T2 is usually simpler and starts from $249 + HST/GST.
What is the penalty for filing a T2 late?
5% of the tax unpaid at the due date, plus 1% of it for each full month the return is late, up to 12 months. It’s 10% plus 2% a month, up to 20 months, if the CRA sent a formal demand to file before the return was filed and the corporation was charged a late-filing penalty for any of the three previous tax years. Interest is charged on top.
Is there a penalty if no tax is owing?
The percentage late-filing penalty is based on unpaid tax, so a year with no tax owing doesn’t attract it. Flat penalties can still apply in some cases. Examples are a $1,000 penalty when a T2 that had to be e-filed is filed on paper, and penalties for late information returns like the T106. The T2 is still required, and the CRA can demand it and assess the corporation on its own estimate if it stays unfiled.
Can I use the VDP for overdue T2 returns?
Often, yes. If the CRA hasn’t sent the corporation a notice or request to file about the missing returns, an accepted disclosure normally gets 100% penalty relief and 75% interest relief. After a request to file or a demand, it’s usually treated as prompted. Partial relief of up to 100% of penalties and 25% of interest still applies, unless an audit or investigation has started.
How many years of T2s can you file at once?
All of them. We rebuild and file every missing year together, starting with the years that have tax owing.
How much does it cost to file overdue T2 returns?
If the books for the missing years aren’t done, each year is priced as catch-up, from $1,800 per year, which includes the bookkeeping, the GST/HST returns and the T2 for that year. A T2 on its own, from $800 per return, is only for corporations whose books are already done and reconciled. A nil T2 for a year with no activity starts from $249. Personal T1 returns are quoted separately. All prices are + HST/GST, fixed in writing before we start.
Do you also file the overdue GST/HST and payroll returns?
Yes. The same team rebuilds the books and files the T2, GST/HST and payroll filings, so every return agrees with the others.
We haven’t filed corporate taxes in 2 years. What should we do first?
Don’t wait for the CRA to write. Gather the corporate bank and credit card statements for both years and book a free review. We check the CRA account for notices, requests to file or demands, tell you whether a voluntary disclosure would likely be treated as unprompted or prompted and what relief it could still get, and give you a fixed price per year. Both years are then rebuilt and filed together, years with tax owing first.
Can I pay for just the T2 if my books are already done?
Yes. If the books for the year are complete and reconciled, a T2 on its own starts from $800 per return + HST/GST. If they aren’t, the year is priced as catch-up, from $1,800 per year, with the bookkeeping, GST/HST and T2 included.
The CRA assessed my corporation on an estimate. What now?
The CRA can assess a corporation that doesn’t file, and its estimate can be higher than what’s really owed. It stands until the real returns are filed or the assessment is objected to. We rebuild the books and file the actual T2s, and if the 90-day objection period from the notice of assessment is still open, we can file a notice of objection for you.
Can Ontario dissolve my corporation if we stop filing?
An Ontario corporation that doesn’t file its annual returns under the Corporations Information Act can be dissolved by the Province after a 90-day notice (OBCA s.241(3)–(4)). Missing T2s don’t close the corporation, and they don’t go away: the CRA can still assess the corporation and, for unpaid payroll deductions and GST/HST, its directors.
Ready to get your corporation caught up?
Book a free 30-minute call. We’ll check which T2s are missing, what the CRA has already sent you, and send a fixed price in writing, mostly within one business day.
Call (866) 254-5368 or email info@tledgers.ca. A 24/7 receptionist answers, so a real person picks up.