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Email this12:17 pm
March 9, 2026
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Hello All,
I am not getting good clarity with regards to my below question. Hope someone can kindly help. I have to file my 2025 Corporation T2 return. Fiscal Year of my corporation starts on Jan 1 and ends on Dec 31 every year. My corporation opened a 2 YR Long Term non redeemable GIC in March, 2025. My question is: Do I have to report Interest Income accrued on this GIC, from March, 2025 to Dec 2025 in my 2025 T2 ?. I am seeing mixed responses, some responses say NO to this, and to only report Interest Accrual from March, 2025 to March 2026 in my 2026 T2 return (basically every anniversary year of GIC). Some responses say that for Corporation reporting standards are different, and for 2025 T2, to definitely report the interest accrued till Fiscal Year End (basically from March, 2025 to Dec 2025). Please guide. Thank you in advance.
1:14 pm
April 6, 2013
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Reporting requirements are different for corporations and partnerships than for individual taxpayers. See Income Tax Act, subsection 12(3):
Interest income
12 (3) Subject to subsection (4.1), in computing the income for a taxation year of a corporation, partnership, unit trust or any trust of which a corporation or a partnership is a beneficiary, there shall be included any interest on a debt obligation (other than interest in respect of an income bond, an income debenture, a net income stabilization account or an indexed debt obligation) that accrues to it to the end of the year, or becomes receivable or is received by it before the end of the year, to the extent that the interest was not included in computing its income for a preceding taxation year.
6:56 pm
March 9, 2026
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Thank you Norman1 for the reply. So from what you have shared, I get an understanding that for Corporations (mine is a CCPC) one has to Accrue and Report GIC Interest accrued during Corporation's Fiscal/Tax Year period (that is between Corporation's Fiscal Start and Fiscal End: In my case between Jan1 and Dec31). And what I understand the interest accrual till GIC 'Anniversary Date' logic does 'NOT' hold true for Corporations. Kindly please confirm ?
10:02 am
April 6, 2013
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Correct. The anniversary date reporting of subsection 12(4) doesn't apply to taxpayers that subsection 12(3) applies to:
Interest from investment contract
12(4) Subject to subsection (4.1), if in a taxation year a taxpayer (other than a taxpayer to whom subsection (3) applies) holds an interest in, or for civil law a right in, an investment contract on any anniversary day of the contract, there shall be included in computing the taxpayer’s income for the year the interest that accrued to the taxpayer to the end of that day with respect to the investment contract, to the extent that the interest was not otherwise included in computing the taxpayer’s income for the year or any preceding taxation year.
