Oct 03, 2016
the CRA views these entities to be corporations for Canadian… Read more »
“It is possible to restructure to allow a professional corporation to use the alternative method..”
Professional individuals can elect under the “alternative method” to have a non-calendar year-end. Professional corporations may also elect a non-calendar year-end unless they are members in a partnership.
A non-calendar year-end may be preferred for the professional corporation in order to defer income to the next year.
There are several ways to deal with this:
Professional corporations (PCs) in a “corporate partnership” might consider incorporating the professional practice and adopting a new non-calendar fiscal year for the operating company. Each PC might also be able to apply to the Canada Revenue Agency for a year-end change to align the PC year-ends with the new operating company.
Alternatively, it might be possible to take the practice out of a partnership and transfer it to the individual PCs. By doing so, the PCs can report on a non-calendar year basis.
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