What Happens if I Don’t Report a Dormant Corporation to the CRA?
$300.00 Plus HST Per Tax Year
We are a registered EFILE electronic filer. Your return is transmitted to the Canada Revenue Agency electronically.
Written and reviewed by Sharad Gondaliya, CPA (Ontario), CPA Ontario Membership 61040184.
There is no separate dormancy filing, so the obligation is simply the annual T2. A dormant corporation files a nil T2 within six months of each fiscal year-end until it is formally dissolved. Telling the Canada Revenue Agency the corporation is inactive does not replace the return.
What Happens if I Don’t Report a Dormant Corporation to the CRA?
| Point | Figure |
|---|---|
| Separate dormancy form required | None |
| Months after the fiscal year-end to file | 6 |
| How long the obligation continues | Until dissolution |
| Fee per tax year | $300.00 plus HST |
A true nil return carries no percentage late-filing penalty, because that penalty is a percentage of tax owing and the corporation owes $0.00. The unfiled year still stays open forever, invites a demand to file and an arbitrary assessment, blocks a clearance certificate and dissolution, and costs a non-resident-owned corporation $25.00 per day up to $2,500.00.
Dormant and inactive are descriptions, not filing statuses. The Canada Revenue Agency has no form that pauses the T2 obligation, so the return is filed every year until the corporation is dissolved.
Filing a Nil Return
This service is for a corporation with no activity in the tax year. A corporation with investment income, rental income, or dividends paid or received is not nil.
We are a registered EFILE electronic filer. Your return is transmitted to the Canada Revenue Agency electronically, and your CRA confirmation is emailed within 3 business days. You sign Form T183CORP before we transmit. The fee is $300.00 plus HST per tax year. See the full nil T2 filing cost, every T2 filing deadline, and catch-up nil T2 filing for outstanding years.
For the whole subject in one place, see the complete guide to the nil T2 return.
Related Questions
- What happens if I do not file
- What happens after five unfiled years
- What happens if dissolving without filing
- What happens if ignoring a demand
Last reviewed: October 16, 2026