Canadian corporations must file their T2 return within six months of fiscal year-end. Tax payments are due two months after year-end (three months for certain CCPCs). Late filing attracts a 5% penalty on the balance owing, plus 1% per additional month up to 12 months. Repeat late filers face doubled penalties: 10% plus 2% per month up to 20 months. For MSBs, a CRA delinquency also risks triggering enhanced due diligence from banking partners at their annual review.

Yes. Registered MSBs under FINTRAC must maintain financial records that align with their compliance programme — including transaction records, correspondent banking agreements, and client identification documentation. MSBs with foreign ownership also face transfer pricing and foreign affiliate reporting requirements (T106, T1134). A critical risk: inconsistencies between transaction volumes declared to FINTRAC and revenue figures reported to CRA can trigger simultaneous audits from both bodies.

PSPs registering with the Bank of Canada under the RPAA must demonstrate adequate financial resources and maintain auditable records of funds held on behalf of end users. Most tier-1 banking partners require two years of reviewed or audited financial statements, a balance sheet showing clear separation of client safeguarded funds from operating capital, and documented safeguarding arrangements. Card scheme sponsors may also require quarterly management accounts or capital adequacy summaries.

Financial services are generally exempt from GST/HST under Schedule V of the Excise Tax Act — but the exemption does not apply uniformly. Currency exchange, certain payment processing fees, and SaaS-based compliance tooling may be taxable supplies. Incorrectly classifying taxable revenue as exempt is one of the most common CRA audit triggers for payment companies. We conduct a full supply classification review to ensure your filing position is defensible and input tax credits are claimed correctly.

There is no universal statutory audit requirement for MSBs under FINTRAC, but reviewed or audited statements are frequently required in practice. Banking partners and correspondent institutions typically require review or audit-level statements at their annual due diligence. MSBs subject to RPAA safeguarding requirements must formally demonstrate financial adequacy. Card scheme sponsors impose their own reporting requirements as a condition of access. We prepare compilation, review, and audit-ready statements matched to your specific requirements.

Yes. Foreign entities with Canadian nexus — through resident customers, Canadian-domiciled directors, or a registered branch — may have T2 filing obligations, GST/HST registration requirements, and RPAA registration duties regardless of where the parent is incorporated. We advise on cross-border structuring, CRA non-resident registration, withholding tax obligations, and prepare the financial statements required to satisfy the Bank of Canada and Canadian banking partners.

This integration is a core differentiator of our practice. The financial data reported to the CRA — transaction volumes, revenue categorisation, correspondent fee structures — must be consistent with the declarations in your FINTRAC compliance programme. Our practice leads hold both accounting credentials (ACMA, CGMA) and financial crime certifications (CAMS, CFCS), allowing both frameworks to be reviewed in a single engagement. For clients with active FINTRAC programmes, we conduct a cross-referencing review as part of every annual tax engagement.

The CRA charges 5% of unpaid tax at the deadline, plus 1% per month late up to 12 months. Repeat late filers face 10% plus 2% per month up to 20 months. Interest compounds daily. For MSBs under FINTRAC scrutiny, CRA tax arrears also carry banking risk: partners treat tax delinquency as a financial crime flag, which can trigger account closures or enhanced due diligence demands at the worst possible time. Staying current with CRA is a banking relationship management tool, not just a legal obligation.