What is Efiler?
EFILE is an automated mechanism that enables qualified tax preparation service providers and discounters to send information about individual income tax returns to the Canada Revenue Agency (CRA) straight from EFILE–certified tax preparation software.
Taxpayers may take their tax slips and supporting documents to a registered tax preparer and for a fee, the tax preparer will prepare their return and send it to us electronically using EFILE.
Eligibility: Who can become an E-Filer
Any individual or organization that is in the business of providing tax preparation services can register as an E-filer with the Canada Revenue Agency by satisfying the following conditions:
As a matter of fact, if an individual or an organization is preparing more than 10 returns for a fee, it is mandatory for them to electronically file their returns.
This applies to filing both T1 and T2 returns. The only exception is when a certain type of return is excluded from E-filing. This will be discussed later.
To become an E-filer, the CRA has a screening criterion. Every E-filer is reviewed on an annual basis under this criterion and must meet all of the requirements in order to be registered as an E-filer with the Canada Revenue Agency
Eligibility: Screening Criteria
A screening process is undertaken to evaluate the risk of an applicant as an E-filer. An E-filer deals with highly private and confidential information of a taxpayer. Therefore, it is critical to have a screening process that will ensure that E-filers can be trusted with the confidential information of taxpayers. This helps in maintaining a high level of public confidence in the E-filing system and ensures that all participants adhere to high standards of conduct and integrity.
As per the Canada Revenue Agency, all applicants must meet the following screening criteria:
T2 Corporation Internet Filing
Do not register for EFILE if you are only filing your own T2 Corporation income tax return. Visit the Corporation Internet Filing web page for more information.
Tip: The screening process typically takes 30 days to complete. So, it is highly recommended that applications to become an E-filer must be filed in December to ensure that all formalities are complete on time.
T3 Trust Internet Filing vs T3 EFILE
For a list of T3 Trust returns that can use internet filing, visit the Trust Internet Filing web page for more information along with Restrictions for online filing. For T3 electronic returns to be filed using EFILE, visit How to file a T3 return.
What is the E-FILER Renewal Process
The renewal process is an annual online process that needs to be completed.
For more information please click here