CRA issues mandatory e-filing requirements

Tax preparers can now register with the Canada Revenue Agency (CRA) to comply with new mandatory electronic filing requirements.

Starting January 2013, those who prepare more than 10 income tax returns in a year will be required to file them electronically. This applies to both T1 individual income tax and benefit returns, and T2 corporation income tax returns for 2012 and subsequent tax years. Individual taxpayers and volunteers who don’t charge a fee to prepare income tax returns for others are not required to register for an EFILE number.

Read: 6 ways to reduce a tax bill

Those who do not comply may be charged a penalty. Accounts must be renewed every year. There’s no cost to register.

To file T1 individual income tax and benefit returns electronically, tax preparers must register for an EFILE number and use certified EFILE software.

Read: Make interest payments tax deductible

When filing T2 income tax returns electronically, they must use approved commercial software and transmit the returns using the CRA’s Corporation Internet Filing service, or through the available service in Represent a Client.

Electronic filing provides filers with immediate confirmation of filing, eliminates delays and traditional delivery expenses, and reduces printing costs. It also means refunds are issued faster—good news for tax preparers and their clients.

Read: 5 ways to reduce tax exposure

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.