Corporations who are what I call ‘good corporate citizens’ can apply to pay taxes in installments, rather than monthly. This reduces the monthly hassles and allows the cash set aside for taxes to be kept in the bank for longer.
To be eligible, the corporation must:
-have a perfect compliance (reporting) history (recent 12 months). This means all forms of federal taxes: Income Tax, HST, payroll (CPP and EI)
-earned under $500,000 per year (corporation and associated corporations)
-has less than $10 million in taxable capital (i.e. assets)
-claimed the small business deduction (for corporations under $500,000 in revenue) for this or the previous year.
For more, see www.cra-arc.gc.ca/ specifically: T7B-corp