Failure to prepare or file financial statements can result in several consequences:

  • •For Corporations: Non-compliance with the OBCA can lead to fines, loss of good standing, or even dissolution of the corporation.
  • •For Tax Purposes: Inaccurate or missing financial statements can result in penalties from the Canada Revenue Agency (CRA), including fines, interest on unpaid taxes, or audits.
  • •Investor Relations: For public companies, failure to file statements with the OSC can result in trading restrictions or delisting.

Small businesses may also face difficulties securing loans or managing operations without proper financial documentation.