Accounting, Tax, Payroll & Bookkeeping Services in Ontario

Ontario manufacturing and the M&P deduction

Ontario manufactures more goods than any other Canadian province. The federal Manufacturing and Processing (M&P) profits deduction historically reduced the federal corporate income tax rate on qualifying M&P income, although the deduction was effectively folded into the general corporate rate structure. The Ontario-specific manufacturing tax landscape includes accelerated capital cost allowance on Class 53 manufacturing and processing equipment (50% straight-line over two years for qualifying property acquired in specified periods), the Ontario Innovation Tax Credit for R&D, and the Ontario Co-operative Education Tax Credit for qualifying co-op work placements.

Ontario manufacturers also face complex inventory accounting requirements. Manufacturing inventory includes raw materials, work-in-process, and finished goods, each requiring separate valuation. Manufacturers must allocate manufacturing overhead (direct labour, depreciation of manufacturing equipment, utilities, factory rent) into inventory under the absorption costing method required for tax purposes. End-of-year inventory valuation directly affects taxable income and is a frequent CRA audit area.

Ontario real estate complexity

Ontario has the most active real estate market in Canada and consequently the most complex provincial real estate tax overlay outside BC. Key Ontario-specific items:

• Ontario Non-Resident Speculation Tax (NRST). 25% on certain residential purchases by non-residents (expanded province-wide in 2022, previously limited to the Greater Golden Horseshoe).
• Toronto Vacant Home Tax. Annual declaration required for every Toronto residential property owner. 1% of current value assessment applies to properties declared vacant for more than six months.
• Ontario Land Transfer Tax. Plus the Toronto Municipal Land Transfer Tax on Toronto property purchases (effectively doubling the land transfer cost).
• Ontario Personal Real Estate Corporations (PRECs). Permitted since 2020, allowing licensed realtors to earn commission income through a corporation.
• Pre-construction assignments. Now generally GST/HST taxable since May 2022, with new CRA audit focus.

Canadian tax compliance calendar that applies to Ontario clients

The Canadian tax compliance calendar is the same regardless of where you live in Canada, but several deadlines are commonly missed or misunderstood by Ontario businesses and individuals:

• January 31. T4, T4A, and T5018 information returns due for the prior calendar year. Late filing penalties start at $100 and escalate quickly for larger employers.
• February 28. T5 investment income slips due for the prior calendar year.
• March 1 or March 2. RRSP, FHSA, and similar registered plan contribution deadline for the prior tax year (60 days into the new calendar year).
• March 31. T3 trust return deadline (90 days after the trust's calendar year end).
• April 30. T1 personal tax return deadline for most Canadians. Balance owing is due by this date regardless of whether the filing deadline is extended.
• June 15. T1 deadline for self-employed individuals and their spouses (although any balance owing is still due April 30).
• Six months after corporate year-end. T2 corporate income tax return filing deadline.
• Two or three months after corporate year-end. T2 balance owing payment deadline (three months for CCPCs claiming the small business deduction throughout the year and meeting the taxable income threshold; two months otherwise).
• Quarterly: March 15, June 15, September 15, December 15. Personal tax instalment due dates for taxpayers required to pay instalments.
• Monthly or quarterly. CRA source deduction remittances and GST/HST remittances based on the assigned filing frequency.

What happens when CRA contacts Ontario clients

Canadian taxpayers commonly receive several types of CRA contact each year. Knowing what each one means helps Ontario businesses and individuals respond appropriately:

• Notice of Assessment (NOA). Issued after CRA processes a return. The NOA states the assessed tax, refund or balance owing, and any adjustments CRA made. Review your NOA carefully against your filed return.
• Notice of Reassessment. Issued when CRA changes a previously assessed return. You have 90 days from the date of a Notice of Reassessment to file a Notice of Objection if you disagree.
• Pre-assessment review letter. A request for documentation about specific items on a return before CRA finalizes the assessment. Strict response deadlines.
• Post-assessment review letter. Same documentation request, but after the NOA has been issued. Strict response deadlines.
• Demand to file. A formal demand that you file a return that CRA believes is overdue. Failure to comply can lead to a Notional Assessment (CRA estimates your tax, almost always at a higher amount than actual).
• Audit notice. The most serious form of CRA contact. Audits can be desk audits (by mail) or field audits (CRA officer reviews books in person or virtually).
• Collections letter. Issued when there is an unpaid balance. CRA collections has significant powers including garnishment and asset seizure.

If you receive any form of CRA contact, contact us immediately. Do not call CRA back yourself and do not send documents without professional review.

How BOMCAS Canada handles CRA representation for Ontario clients

With your signed authorization on file (RC59 for businesses or AUT-01 for individuals), BOMCAS Canada can communicate with CRA on your behalf. This means: CRA calls about your file route to us; we can access your CRA My Account or My Business Account information; we respond to review letters, audit requests, and collections matters; we file Notices of Objection within the 90-day deadline if needed; we represent you in CRA audits virtually; and we coordinate with tax counsel for Tax Court of Canada appeals where required.

Common Canadian tax questions Ontario clients ask

Why working with BOMCAS Canada makes sense for Ontario

Ontario businesses and residents work with BOMCAS Canada for several reasons that may matter to you:

• Fixed-fee transparency. Most engagements are quoted as a fixed monthly fee or fixed per-project fee, signed in writing before any work begins. No surprise hourly invoices for routine work.
• One-business-day response standard. We staff to a one-business-day response standard for client emails and calls during normal business hours. No multi-day voicemail backlogs.
• Year-round support. Most clients have unlimited email and phone support included in the engagement, not just during tax season.
• Same accountant year over year. You are not transferred to a new junior every year. The same person who knows your file this year will still know it next year.
• Secure virtual delivery. Encrypted client portal, e-signature, multi-factor authentication, and direct CRA representation under your written authorization. PIPEDA-compliant. No driving to a CPA office.
• Canadian-only tax expertise. We do not do US-only tax, UK tax, or other foreign jurisdictions in isolation. Our cross-border work is always anchored by deep Canadian compliance. Every member of the team works exclusively on Canadian files.
• Industry depth. We have specialized experience across trucking, real estate, medical professionals, contractors, restaurants, e-commerce, farms, nonprofits, and other Canadian industries.

Getting started — what Ontario clients can expect

A typical engagement with BOMCAS Canada begins with a phone call or contact form submission. We respond within one business day to schedule a 15–30 minute discovery conversation by phone or video. The discovery call covers your current tax situation, accounting history, prior accountant relationship (if any), pain points, and goals. There is no sales pitch and no obligation. If we are a fit, we provide a written engagement letter with a fixed fee and clear scope. If we are not a fit, we are happy to suggest other Canadian professionals who might be.

Once the engagement letter is signed, you e-sign the CRA authorization (RC59 for businesses or AUT-01 for individuals), and we onboard you to the encrypted client portal. From that point forward, the relationship is structured around predictable monthly deliverables: bookkeeping, sales tax filings, payroll, and year-end financial statements plus T2 corporate tax (for incorporated businesses) — with proactive tax planning conversations throughout the year.

Cities and communities we serve in Ontario

Below are the major Ontario cities with dedicated landing pages. BOMCAS Canada also serves towns, villages, and hamlets across Ontario virtually.

Services available throughout Ontario

Talk to a Canadian accountant serving Ontario

Call 780-667-5250 or submit the contact form. We respond within one business day.

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