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Closing your business. Filing a final tax return, paying outstanding taxes and succession planning.
Oct 24, 2022 · Take care of the taxman. File all your outstanding returns and pay any outstanding tax amounts. Cancel your business registration. File the “RC145 Request to Close Business Number (BN) Program Accounts” form with the CRA. This lets them know you are shutting down your business. Make it real by telling your people and settling your accounts.
- Collect outstanding accounts receivable (before you notify customers you're going out of business). This may be difficult due to the economic dislocation caused by the coronavirus pandemic, but attempt to collect as much as possible.
- Sell off inventory. If possible, consider a "going out of business" sale. Alternatively, you could donate your inventory to charity--for example, a restaurant could donate food to a food bank.
- Notify your creditors (suppliers, lenders, service providers, and utilities). Doing this the right way limits the amount of time a creditor can ask for a debt.
- Notify your customers and deal with any remaining contractual obligations. Remember to return any deposits or payments for goods not delivered or services not rendered.
- Overview
- Payroll
- GST/HST
- Corporate income tax
- Forms and publications
- Related links
When you decide to close your business and no longer need your business number (BN), you have to complete certain forms before the accounts can be closed. If your business is registered in Ontario, go to Registered in Ontario.
Each business account has its own procedures, such as how to meet filing obligations and make payments.
Remit all Canada Pension Plan and Quebec Pension Plan contributions, employment insurance premiums and income tax deductions to your tax centre within seven days of the day your business ends. To find out which one is your tax centre, go to Find a CRA address.
You also need to complete and file the T4 and T4A slips and summaries electronically or send them to the Jonquière Tax Centre within 30 days of the day your business ends.
For more information, see Changes to your business entity in Guide T4001, Employers' Guide – Payroll Deductions and Remittances.
Close the business number and all CRA business accounts after all the final returns and all the amounts owing have been processed. To close your payroll program account, you can use the "Request to close payroll account" service in My Business Account. An authorized representative can use this service through Represent a Client. You can also complete Form RC145, Request to Close Business Number Program Accounts.
For more information, go to Open or manage an account – Close.
When you want to permanently dissolve your corporation, you should send an application for dissolution to the government body that governs the affairs of your corporation.
You should also file a final return and send us a copy of the articles of dissolution. Otherwise, we consider that the corporation still exists and it will have to file a return even if there is no tax payable.
•Guide RC4022, General Information for GST/HST Registrants
•Guide T4001, Employer's Guide – Payroll Deductions and Remittances
•Business and industry
•Contact the Canada Revenue Agency
•Innovation, Science and Economic Development Canada
•Related provincial and territorial government sites
Nov 27, 2023 · To properly close your business number accounts, the CRA suggests completing Form RC145, a request form, and submitting it along with your final return. When you submit your final tax return to the CRA, remember to enclose a copy of the articles of dissolution as well. Otherwise, the CRA will assume that your corporation continues to exist, and ...
The office that issued your permit or licence should be able to tell you how to cancel or close your municipal accounts. To determine what municipality your business is in, you can contact the Association of Municipalities of Ontario (AMO). Contact AMO: 1-877-426-6527. Association of Municipalities of Ontario.
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Dec 4, 2019 · From $1.5 to $6 million you pay quarterly, and above $6 million you pay monthly. In all cases, you must account for and pay any outstanding GST/HST amounts to the CRA immediately after closing your business. When doing so, you must make two separate calculations, one for the amounts owing on non-capital property and another for the amounts ...
