Changing Your Year-End

Is the year-end of your incorporated business annoying you?  Does it fall at a particularly busy time so counting inventory is a disaster?  Would a different year-end solve the problem? If so, you can ask CRA for permission to change your year-end. This option does not apply to people whose business is not incorporated. We are only talking about changing the year-end of an incorporated business. If your business is not incorporated you have a December yea- end.

Canada Revenue Agency is in charge of year-ends for tax purposes. The first time you filed a corporate income tax return was the chance you had to pick a year-end. Once the first tax return was filed, you were committed to that year-end and you cannot change it without their permission. If you are changing to a December year-end you will not have any trouble with CRA approving the request. They like December year-ends as it is easier to match the corporate year with T4, T5 and HST reporting. If you are changing to a non-December year-end you need to give them a compelling business reason. If your year-end is annoying you then it is worth a try to get permission to change it.

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