Guides an AI agent through the full Canadian Canadian-Controlled Private Corporation (CCPC) tax engagement: from corporate intake and year-end bookkeeping close through T2 preparation (Schedules 1, 8, 50, 100, 125, 141), GST/HST reconciliation, shareholder remuneration planning, and CRA filing. Covers federal corporate tax, the small business deduction, associated corporation rules, and instalment obligations.
Confirm the corporation is a Canadian-Controlled Private Corporation (CCPC) resident in Canada, establish the fiscal year end, and collect the minute book and prior-year T2 and Notice of Assessment. Identify associated corporations (for the shared $500,000 small business deduction limit) and flag any non-resident shareholders that could break CCPC status.
Reconcile the general ledger to bank statements, credit cards, and loan accounts. Classify all transactions to CRA-accepted categories, strip out non-deductible items (50% meals, 0% fines, personal draws), and produce a final trial balance and draft financial statements (income statement and balance sheet) that will feed directly into T2 Schedules 100 and 125.
Determine the optimal mix of salary and dividends for owner-managers before finalizing the T2, since the decision affects both corporate taxable income and the shareholders' personal T1 returns. Model the small business deduction (SBD) threshold, integration theory, and the CPP contribution trade-off for salary paid to the shareholder.
Prepare the full T2 federal corporate return and all applicable schedules using the confirmed financial statements and remuneration decisions. Calculate net income for tax purposes (Schedule 1 reconciliation from GAAP to tax), apply the small business deduction and general rate reduction, compute federal and provincial/territorial corporate taxes, and verify refundable dividend tax on hand (RDTOH) and capital dividend account (CDA) balances where applicable.
Reconcile GST/HST collected and input tax credits (ITCs) claimed during the fiscal year to the financial statements. Confirm the reporting period method (monthly, quarterly, or annual), verify that ITCs were claimed within the four-year limitation, and identify any taxable vs exempt vs zero-rated revenue splits if the corporation has mixed supplies.
File the T2 and any provincial returns, confirm the corporate tax balance due (payable within two months of year end for most CCPCs, or three months if the SBD was claimed), and compute the monthly instalment schedule for the following fiscal year. Flag any late-filing penalties or interest that may have accrued on prior instalments.
Run this workflow in your AI agent
Install the MCP connector once — your agent loads the right skills, works through each phase, and routes to a licensed Canada accountant for review.
ca-freelance-intake
ALWAYS USE THIS SKILL when a user asks for help preparing their Canadian tax returns AND m
nu-individual-return
Use this skill whenever asked about Nunavut territorial income tax for a self-employed sol
ca-fed-instalments
Use this skill whenever asked about Canadian federal quarterly instalment requirements for
ca-capital-gains
Canada capital gains tax: inclusion rate (50% / 2/3 above $250k from 2024), lifetime capit
ca-fed-t1-return
Use this skill whenever asked about a Canadian federal T1 General individual income tax re
ns-individual-return
Use this skill whenever asked about Nova Scotia provincial individual income tax. Trigger
ca-fed-t2125
Use this skill whenever asked about Canadian self-employment business income reported on F
nl-individual-return
Use this skill whenever asked about Newfoundland and Labrador provincial individual income
qc-individual-return
Use this skill whenever asked about Quebec provincial income tax (TP-1) for a self-employe
nt-individual-return
Use this skill whenever asked about Northwest Territories territorial income tax for a sel
on-individual-return
Use this skill whenever asked about Ontario provincial income tax for a self-employed sole
sk-individual-return
Use this skill whenever asked about Saskatchewan provincial individual income tax. Trigger