Mandatory electronic filing

If you are an individual, a corporation, or a partnership, and you accept payment to prepare more than 10 T1 General income tax and benefit returns, or more than 10 T2 corporation income tax returns per year, you must file those returns electronically.

Note: An employee who prepares returns as part of their work duties is not a tax preparer.

The following return types are exceptions, and do not need to be filed electronically:

• Returns for tax years before 2012
• T1 General income tax and benefit returns filed after November 30
• Excluded T1 returns
• T2 returns with restrictions

Other exceptions apply if you are a tax preparer who:

• Applied to use EFILE, but was not accepted
• Had EFILE privileges suspended or revoked

EFILE is an automated service that permits approved tax preparers to file current year income tax and benefit returns online. If you prepare and file more than 10 T2 corporation income tax returns, you will be required to file them electronically through the available service in Represent a Client or through Corporation Internet Filing.

As a tax preparer, you will need to register with the CRA in order to use EFILE. This must be done at least 30 days before the service is required.

For more information on how to register for T1 General returns, visit Apply for EFILE on the CRA website.

For more information on how to register for T2 corporation returns or how to file corporation returns electronically, visit Corporation Internet Filing on the CRA website.

If you currently file your clients' returns electronically with an EFILE number, you need to renew your EFILE eligibility every year.

Your software package will need to be certified by the CRA before you can use it to file electronically.

If you are required to file electronically but do not comply, you may be charged a penalty of $25 for each T1 General return that is paper-filed, and $100 for each T2 Corporate return that is paper-filed.