What a corporate tax return (T2) costs in BC, and what drives the price

In BC, preparing and filing a T2 corporate tax return typically costs $500 to $1,500 for a simple or inactive company, $1,500 to $4,000 for a small operating business where the preparer also compiles year-end financial statements, and $4,000 to $10,000 or more for larger companies with payroll, multiple provinces or a review engagement. The biggest driver is not the return itself but the state of the books when they arrive.

These are market ranges for the Okanagan and Lower Mainland based on what small businesses report paying, not a quote. Murtagh & Co. publishes fixed prices at murtaghco.ca/pricing so you can compare without a sales call.

What you are actually paying for

A T2 has three layers, and each one is a separate chunk of the fee.

1. Bookkeeping. Every transaction categorized and the bank reconciled. A shoebox or an uncoded bank export is the expensive part: $50 to $90 an hour, and a small trades company can take 15 to 40 hours. Clean monthly books make this layer cost nothing at year end.

2. Year-end financial statements. The balance sheet and income statement are reported with the return and must tie to the books. For most small corporations this is a compilation with no assurance. A review engagement, which some lenders and bonding companies require, adds $3,000 to $8,000 and needs a licensed public accounting firm.

3. The T2 return and schedules. Mapping the statements to the CRA's format, capital cost allowance on trucks and equipment, the small business deduction, shareholder loan balances, dividends paid, GST reconciliation and the provincial schedules. For a one-owner trades company this is 3 to 6 hours of skilled work.

Why one company pays $800 and another pays $3,500

  • Revenue and transaction volume. More invoices, more lines to review.

  • Payroll. T4s, source deduction reconciliation and a year-end payroll review.

  • Subcontractors. T5018 slips and matching the sub ledger to the expense.

  • Vehicles and equipment. Each asset class needs a capital cost allowance schedule; personal-use vehicles need a benefit calculation.

  • Shareholder transactions. Owner draws, loans and dividends have to be cleaned up and documented before filing.

  • Holding companies and associated corporations. The $500,000 small business limit is shared across associated companies, so the preparer has to work both returns together (CRA: corporation tax rates).

  • Prior years unfiled. Each late year is a full separate return, usually at the same price, plus the penalties below.

Worked example: a Kelowna plumbing company

Revenue $420,000, one owner, two employees, three subcontractors, two trucks. Books kept monthly and reconciled.

  • Bookkeeping at year end: $0 (already done)

  • Compiled financial statements: $900

  • T2 with capital cost allowance on two trucks, small business deduction, T4 and T5018 reconciliation: $1,100

  • Total: about $2,000

Same company, but the owner drops off a bank export and a folder of receipts in May: add 25 hours of bookkeeping at $70, or $1,750, for a total of about $3,750. The return is identical. The extra $1,750 bought cleanup, not tax advice.

Deadlines and what being late costs

The T2 is due six months after the corporation's year end (CRA: when to file). The tax balance is due earlier: two months after year end, or three months for a Canadian-controlled private corporation that claimed the small business deduction and had taxable income under the business limit in the prior year (CRA: balance-due day).

File late with tax owing and the penalty is 5% of the unpaid tax plus 1% per full month, up to 12 months; a repeat offence after a demand to file is 10% plus 2% per month up to 20 months (CRA: corporation penalties). Interest on unpaid corporate tax runs at the prescribed rate, 7% for October to December 2026, compounded daily (CRA: prescribed rates, Q4 2026). On $15,000 of tax filed four months late, that is $1,350 in penalty before interest, which is more than most small T2 fees. See also CRA late filing penalty and interest.

Rates verified on 2026-10-25.

FAQ

Can I file my own T2? Yes, with CRA-approved software, and it is manageable for a dormant holding company. For an operating company with assets, payroll and a shareholder loan, one missed deduction or wrong capital cost allowance class usually costs more than the fee.

Does a nil return cost less? Usually. A company with no activity still has to file, but a nil T2 with a simple balance sheet runs $300 to $800 in the market.

Are the financial statements included in the T2 price? Ask. Some quotes are for the return only and assume you supply finished statements. A quote that includes compiled statements will look more expensive but may be the same total.

Is the fee tax deductible? Yes. Accounting and tax preparation fees are a deductible business expense for the corporation.

What do I need to provide to keep the cost down? Reconciled books, year-end bank and loan statements, a list of assets bought and sold with dates and prices, payroll and T5018 summaries, GST returns filed, and last year's T2 and notice of assessment.

A trades owner should talk to an accountant before the first corporate year end, not after, because the choice of year end, the vehicle ownership structure and how the owner gets paid all decide what the T2 costs and what it saves.

How Murtagh & Co. Can Help.

We work with trades and construction businesses across the Okanagan on bookkeeping, GST, payroll, tax and the numbers behind your pricing.

Murtagh & Co. was founded by Devon Murtagh, CFA, FRM, a former trades business owner.

Prefer to talk it through? Book a free 30-minute call, or reach out at info@murtaghco.ca.

More free tools for contractors: murtaghco.ca/contractor-toolkit