
How RRSP Contributions Work
February 7, 2013
Obtaining Online Access to Accounts at Canada Revenue
April 3, 2013Starting in January 2013, CRA requires tax returns to be filed electronically. This applies to both T1 individual income tax returns and T2 corporation income tax returns for 2012 and subsequent tax years.
If the taxpayer does not comply, a penalty will be charged of $25 for each T1 personal tax return that is paper-filed and $100 for each T2 corporation return that is paper-filed. Also, a further penalty will be charged to corporations eligible for efiling who paper-filed the corporate tax return. The penalty for tax years ending in 2012 is $500. For tax years ending in 2013 and subsequent, the penalty is $1,000. I I guess this means that the CRA is serious about having all incoming returns in electronic form.
The following returns do not need to be filed electronically:
- Tax returns for tax years before 2012;
- excluded T1 personal tax returns – such as non-resident tax returns, returns that are “multiple jurisdiction” returns where income is allocated amongst provinces for self employed individuals; and
- T2 corporation returns with “restrictions” – very rare.
Please refer to the CRA website, link below, for further information on this mandatory requirement as well as a list of T1 personal tax return exclusions and T2 corporation return restrictions. Scarrow and Company will of course get your returns e-filed as appropriate so having any of these penalties should never be a problem you run into.
http://www.cra-arc.gc.ca/esrvc-srvce/tx/prprrs/mndtrylctrncflng-eng.html