Cfo Canadian Tax Prep

Workflow

1. Classify the filer before doing any tax work

Start by pinning down:

• entity type: sole proprietorship, partnership, or corporation
• tax year or fiscal period
• province or territory of operations
• registered accounts in scope: GST/HST, payroll, import/export, etc.
• whether the package is for planning, quarter-end, or year-end filing prep

If any of those are unclear and they change the form set, stop and ask.

2. Load the authoritative source set

Read the source map in references/cra-source-map.md and use the smallest relevant subset:

• T4 / employment income work: T4 slip page, line mapping, due dates
• rental work: T4036, T776, rental expense guidance, due dates
• self-employed/T1/T2125 work: T4002, T2125, personal due dates, business records
• corporation/T2 work: T4012, T2 filing due dates, balance-due day, GIFI
• GST/HST work: RC4022 and GST/HST filing deadline pages
• payroll/slip work: T4001 and RC4120

Then use references/taxtips-source-map.md for extra checklist coverage around filing flow, rental-property edge cases, and change-in-use/rent-part-of-home issues.

Use CRA pages for obligations and dates. Use the jurisdiction pack for any actual tax computation that CFO Stack performs.

3. Build the prep packet from evidence, not from forms

Collect or confirm:

• T4 slips and any other income slips already issued
• notice of assessment and installment reminders
• year-end summary of employment benefits, reimbursements, and deductions if the slips look incomplete
• rental income ledger or rent roll by property
• rental property invoices, mortgage-interest summaries, property tax bills, insurance, utilities, and repairs
• year-end trial balance or ledger export
• bank, credit card, and loan reconciliations
• sales detail and invoice support
• payroll reports, remittance confirmations, and prior slips
• fixed asset additions/disposals with invoice support
• shareholder loan continuity, dividend resolutions, and owner draws
• GST/HST working papers for collected tax, ITCs, and adjustments
• vehicle logs, home-office support, and other mixed-use allocations where relevant
• prior-year notices of assessment, reassessment, and installment reminders

If the source trail is weak, produce a blocker list before preparing any tax summary.

4. Map the obligation set

For a personal return driven by employment and rental activity, usually prepare around:

• T1 due date and balance-due check
• T4 slip review mapped to line 10100 and related pension/EI boxes
• rental income summary with T776 support
• property-level expense allocation and personal-use split if part of the home is rented
• CCA review only if relevant and only with an explicit note about downstream implications

For self-employed individuals, usually prepare around:

• T1 filing deadline and payment check
• T2125 for each business or professional activity
• GST/HST return support if registered
• installment review if payments are required
• home office, motor vehicle, and CCA support where applicable

For corporations, usually prepare around:

• T2 return package for the fiscal period
• balance-due check and installment history
• GIFI-ready balance sheet and income statement mapping
• shareholder loan, dividend, and compensation review
• GST/HST and payroll support
• T4 or T5 slip season support if compensation or dividends were paid

Do not assume every item applies. Mark each as required, not applicable, or needs confirmation.

5. Build workpapers in the order that catches errors fastest

Preferred order:

1. Slip completeness: confirm the return has the expected T4 and other core slips before drafting anything
2. Employment income mapping: reconcile T4 boxes to the T1 line mapping and note any missing explanations
3. Rental income completeness: reconcile rents received to leases, deposits, and property-level tracking
4. Expense support: confirm rental, business, or mixed-use expenses with receipts and purpose
5. Cash and liability completeness: reconcile banks, credit cards, loans, payroll liabilities, and sales-tax liabilities
6. Fixed assets and CCA: separate capital items from current expenses and preserve CCA support
7. Owner/shareholder flows: classify draws, reimbursements, wages, dividends, and shareholder-loan activity
8. Filing overlays: only after the books tie out, prepare the T1/T776/T2125, T2/GIFI, GST/HST, or payroll packet

This avoids doing form work on top of dirty books.

6. Flag the Canadian risk areas explicitly

Always call out:

• missing or inconsistent T4 slips
• T4 boxes that imply follow-up support is needed for benefits, CPP, or EI handling
• rental expenses that look capital rather than current
• personal-use allocation issues for partial-home rentals
• change-in-use facts that may trigger separate review
• mixed personal/business expenses
• missing GST/HST registration or incorrect ITC support
• weak vehicle logbooks or home-office support
• owner compensation misclassification
• unreconciled shareholder loans
• capital assets expensed directly without CCA review
• late remittances, slips, or installment exposure
• province-specific payroll or corporate filing assumptions that need confirmation

7. Produce a review packet, not a filing claim

Preferred output structure:

tax/canada/<tax-year>/
  overview.md
  obligations-checklist.md
  missing-items.md
  workpapers/
    employment-income.md
    revenue-reconciliation.md
    gst-hst.md
    payroll.md
    rental-income.md
    fixed-assets.md
    owner-shareholder-flows.md
  filing/
    t1-income-summary.md
    t776-rental-summary.md
    t1-t2125-summary.md
    t2-gifi-summary.md
    slips-summary.md

Each summary should separate:

• confirmed facts from the books
• assumptions that need sign-off
• proposed treatments
• exact CRA pages used to support the workflow

Output Standard

Every Canadian tax prep deliverable should end with:

• Open questions
• Missing support
• Deadlines to verify on CRA
• Items for CPA/bookkeeper review

Never end with “ready to file” unless a human reviewer explicitly confirmed that status.