A Montreal corporation had filed federal T2 returns but missed its separate Quebec CO-17 returns entirely. We brought both filings current.
Quebec administers its own corporate income tax, so a corporation operating there files a federal T2 with the CRA and a separate CO-17 with Revenu Quebec. This client had filed federally for three years but never filed provincially, and penalties were accruing on returns nobody had flagged. We prepared and filed the outstanding CO-17 returns, reconciled the provincial and federal figures, and applied for relief on the late-filing penalties.
A CCPC files its T2 within six months of year-end, with the balance due two months after (three where the small business deduction is claimed). The 9% federal small business rate applies to the first $500,000 of active business income.
Why it bites: The filing and payment deadlines differ, and interest runs from the payment date. Filing on time while paying late still costs money.
The late-filing penalty is 5% of the balance owing plus 1% for each full month late, to a maximum of twelve months. A second late filing within three years doubles both figures.
Why it bites: The penalty is calculated on the balance owing, so a late return with nothing owing costs nothing — which is why filing on time matters even when you cannot pay.
Every engagement above was priced as a fixed fee agreed before the work started, and paid only once the client had reviewed the result. If any of this looks like your situation, the first step is a free 15-minute call — we will tell you plainly whether there is anything worth doing.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe a real engagement; outcomes depend on your own facts. Client details are omitted for confidentiality.
