Reporting your business income and expenses

To report your business income and expenses, you can complete either:

Form T2124, Statement of Business Activities
This is the generic form to report any business activities except for professional businesses.

Form T2032, Statement of Professional Activities
This is the generic form used to calculate your income from professional activities using the same rules as for a business. However, some aspects of professional activities are different from those of other types of businesses.

You have to complete a separate form for each business or professional activity you operate. For more information, see IT206, Separate Businesses.

Penalties

Include all your income when you calculate it for tax purposes. If you fail to report all your income you may be subject to a penalty of 10% of the amount you failed to report after your first omission.

A different penalty may apply if you knowingly or under circumstances amounting to gross negligence participate in the making of a false statement or omission in your tax return. In such a case the penalty is 50% of the tax attributable to the omission or false statement (minimum $100).

Forms and publications

• Business and Professional Income guide (T4002)
• Reconciliation of Business Income for Tax Purposes guide (RC4015)
• Guide for Canadian Small Businesses (RC4070)
• Form T2032, Statement of Professional Activities
• Form T2124, Statement of Business Activities