2026 Corporate Tax Planning Checklist By BhundhooTax Professional Corporation
Led by CPA Amit Bhundhoo
Use this checklist to stay ahead of your corporate tax obligations and make proactive decisions that optimize your financial outcomes.
Quarterly Tax Planning
- Review year-to-date financials (Profit & Loss, Balance Sheet)
- Estimate corporate tax liability based on income to date
- Adjust installment payments if income changes significantly
- Identify opportunities to defer income or accelerate expenses
- Review HST/GST obligations ensure timely filings
- Monitor upcoming tax deadlines to avoid penalties
- Review accounts receivable and payable to monitor cash flow timing
Assess shareholder draws and ensure proper tax planning on distribution
Deductions & Credits
- Confirm all eligible business expenses are captured (home office, travel, software, meals)
- Maximize Capital Cost Allowance (CCA) claims
- Track SR&ED (Scientific Research & Experimental Development) credits if applicable
- Capture apprenticeship/job training credits (if hiring/training staff)
- Record any charitable donations with official receipts
- Claim all applicable tax credits
Payroll & Compensation
- Review salary vs. dividend mix, revisit owner remuneration strategy
- Confirm T4 and T5 slips are being tracked properly
- Ensure proper CPP/EI withholdings for all employees (including family members)
- Set up Registered Pension Plan (RPP) or RRSP matching if applicable
Entity Structure & Strategy
- Revisit your corporate structure (OpCo/HoldCo setup)
- Consider whether a Family Trust or a second corporation can enhance tax deferral or income splitting.
- Review shareholder loans and ensure compliance.
- Analyze whether restructuring could improve liability protection or tax efficiency.
Documentation & Record Keeping
- Keep all business receipts (digitally or physically)
- Reconcile bank and credit card statements monthly
- Maintain a vehicle mileage log if claiming auto expenses
- Separate personal and business expenses to avoid red flags
- Ensure clean, up-to-date books for year-end T2 filing
Year-End Planning Plan
- Make final large purchases (equipment, software) before December 31st
- Declare bonuses or dividends ahead of year-end if needed
- Project net income and tax due for better cash flow planning
- Review any upcoming changes to CRA rules for 2026
- Write off obsolete inventory before year-end
- Prepay eligible business expenses
Bonus Tip: Maximize Year-End Deductions
- As an owner-manager, you may benefit from prepaying eligible recurring business expenses such as insurance premiums, rent, or software subscriptions before December 31st. Doing so can reduce your current year’s taxable income and help manage your corporate tax liability more effectively.
- This strategy can also improve year-end tax planning flexibility.
- It allows you to better control timing differences between income and expenses.
Plan Ahead, Save More Strategically
- Position your corporation for tax efficiency with a strategy tailored to your business goals. Review your structure, compensation, and investments to minimize taxes and maximize deductions. Proactive planning improves cash flow, avoids costly year-end surprises, and supports long-term growth and financial stability. Regularly reviewing and updating your plan ensures you stay aligned with changing tax rules and business priorities. This approach empowers you to make informed decisions and seize opportunities for continued success.