A client has 3 corporations with June 30th year end and one corporation with December 31st year end. Can I make a request to CRA to change the ye date so all associated corporations would have the same ye date as June 30th?
All you need to do is file a short year return, with Dec 31 as the year end date, then it will update the year end date, you may want to watch out for GST and payroll account. Those would need to be done separately
No need to get a CRA’s approval first? Do you have the relevant experience?
There is no need of approval, I did it couple times
I got to add one thing though, I changed their year end because there was change in control, I inquired about the steps with CRA, that’s what I was told to do.
I always request CRA (without which you cannot change the fiscal year-end) with a business case. Most of the times, they accede to the request (I have had a bunch of denials, too). Go for it. Make a good business case.
Atul
Thank you! I will try
Approval is required unless it’s due to a change in control. With a change in control the change in year-end is automatic. Otherwise you MUST request approval for the change, and it must have a business reason. Aligning the year-ends of related companies is one valid reason.
2 Likes
Thank you!
If they can change it first, that’s actually a good thing. Otherwise, all payment and installments would messed up. I filed the T2 short, and client paid for the tax owing, but tax year wasn’t updated, so CRA charged interest and penalties for late payments, I requested them to move the payment to the appropriate year, they directed me to do it online, which took forever, at the end, it took over a year.
1 Like