Holding Company Tax Returns in BC

A holding company has to file a T2 every year, even if all it does is hold shares or investments. We prepare your holding company's year-end statements and T2, track dividends and intercompany balances, and make sure it lines up with your operating company's return.

Who this is for

• Holding companies that own shares of an operating company
• Holding companies with investment accounts, real estate or loans to related companies
• Owners who moved profits from their operating company into a holdco
• Holding companies that are behind on their returns

What's included

• Year-end financial statements for the holding company
• T2 corporate tax return, filed electronically with the CRA
• Dividends received and paid, including the refundable tax that goes with them
• Intercompany loans and balances reconciled with your operating company
• Investment income and gains reported correctly
• One preparer for both companies, so the two returns match

Pricing

You get an exact fixed price after a short call, once we know what the company holds. No hourly billing.

How it works

1. Book a 15-minute call. We go over what the holding company owns and how money moves between your companies.
2. Send your records. Bank and investment statements, and dividend details.
3. We prepare everything. Statements and T2, checked against your operating company's numbers.
4. You sign, we file. The return goes to the CRA electronically and you get a copy for your records.

Why J&O Financial

• Corporate tax and bookkeeping for BC businesses since 2013
• Fixed prices, no surprise invoices
• Both your companies handled in one place
• Fully remote, anywhere in BC
• We work in English, Russian and Hebrew

Frequently asked questions

Does my holding company have to file a T2 if it did nothing this year?

Yes. Every resident corporation has to file a T2 every tax year, even if it had no activity and no tax to pay.

Is there tax on dividends my holding company receives?

It can be. Dividends a private corporation receives from other corporations can be subject to Part IV tax. That tax is refundable: the holding company can get it back when it pays taxable dividends to its own shareholders. We track this for you each year.

Can investment income in my holding company affect my operating company's tax?

Yes. If your corporations are associated and earn more than $50,000 a year of passive investment income combined, the small business limit is reduced, and it's gone once passive income passes $150,000. That can raise the tax rate on your operating company's business income. We flag it before it happens.

Can you do both my operating company and my holding company?

Yes, and it's the best way. The dividends, loans and balances between the two companies need to match on both returns.

My holding company is behind on returns. Can you help?

Yes. We prepare the missing years, oldest first.

Late and catch-up returns · Corporate tax returns (T2) · See all our services