Welcome to the world of CRA going more and more electronic.

We enter a new level of working electronically.

Mandatory Internet Filing for T2 Returns is now a reality for next year.

I think that there will be some tax preparation companies, who will opt out of doing taxes for companies doing over the one million dollar threshold.

While it is a pretty convenient way to file taxes, I am concerned that for the first few years it could be very problematic.

Even though I am known as a pretty hip technology guy, I am still not into e-filing of any kind. Perhaps I know too much.

In any case, accounting is going to take on a new meaning for businesses. Audit Ready accounting will be come the norm.

Audits will be more electronically generated than ever before.

The concept of bookkeeping being less than a daily activity, done to audit ready standards, will go the way of the do do bird.

So to learn more about T2 Corporate Electdronic filing… read on:

Dan White

The following data is taken from the CRA website.

As announced in the 2009 Budget Statement, beginning with tax years ending after 2009, corporations with gross revenues in excess of $1 million will be required to Internet file their T2 Corporation Income Tax Return using CRA approved commercial software. The following exceptions apply:

* Insurance Corporations;
* Non-resident corporations;
* Corporations reporting in functional currency; and,
* Corporations that are exempt from tax payable under section 149 of the Income Tax Act.

About the Corporation Internet Filing service

Corporation Internet Filing allows corporations that meet the eligibility criteria to file their 2002 or subsequent year corporation income tax returns directly to the CRA through the Internet using a Web Access Code or EFILE On-Line number and password.

Corporations can also use My Business Account to file their 2002 or subsequent year corporation income tax return directly to the CRA through the Internet. Visit www.cra.gc.ca/mybusinessaccount to find out more about this service.
Who can use Corporation Internet Filing?

You can use this service to file your 2002 or subsequent year corporation income tax return if your corporation meets the following eligibility criteria:

* is a resident of Canada, or
* is an eligible non-resident corporation, see Restrictions for eligibility criteria; and
* is not an insurance company.

If your corporation meets these eligibility criteria, and you wish to use the Internet to file your return, contact the Corporation Internet Filing Help Desk at 1-800-959-2803 or for non-resident corporations, at 819-536-2360 or 204-984-3594 during our Help Desk hours of service to obtain a Web Access Code or get more information.

If you are a tax professional and wish to use the Internet to file your client’s corporation income tax return, you can use the EFILE On-Line service to obtain an EFILE On-Line number and password. If you are already registered to file individual income tax returns over the Internet, you are automatically registered to transmit corporation income tax returns, using the same EFILE On-Line number and password.

Check Restrictions for information on returns that cannot use this filing service.

Beginning with tax years ending after 2009, corporations with gross revenues in excess of $1 million will be required to Internet file their T2 Corporation Income Tax Return using CRA approved commercial software. The following exceptions apply:

* Insurance Corporations;
* Non-resident corporations;
* Corporations reporting in functional currency; and,
* Corporations that are exempt from tax payable under section 149 of the Income Tax Act.

Why use Corporation Internet Filing?

The Corporation Internet Filing initiative is part of the Government Online Initiative to deliver more services electronically. It provides you with an easy-to-use, convenient, secure, and confidential option for filing your corporation income tax return. As a result, the CRA will benefit from reduced processing costs. In support of sustainable development, a paper copy of your return should not be submitted.

Corporation Internet Filing streamlines the tax filing process, provides the filer with an immediate confirmation of receipt, and results in faster refunds.
How do you use Corporation Internet Filing?

Check Before you start for information on what you have to do before transmitting your corporation income tax return.
Is there a cost for Corporation Internet Filing?

You’ll have to use CRA-certified software. You might have to purchase a tax preparation software package, but the Corporation Internet Filing service is free.

Reasons to consider Corporate On Line filing.

* Immediate confirmation: You will receive immediate confirmation that we received your return (legal proof for your records)
* Faster processing: You will receive your Notice of Assessment more quickly than with a paper filed return
* Faster refunds: Receive your refunds more quickly than with paper-based filing (especially when combined with direct deposit)
* Reduced paperwork: Help the environment by reducing paper consumption
* Costs savings: Save on printing and mailing costs

Restrictions

You cannot use the Corporation Internet Filing service to send your tax return if you do not meet the eligibility criteria listed in Who can use Corporation Internet Filing?

You can file only one tax return at a time.
You cannot use Corporation Internet Filing to send:

* an amended return;
* a return for any year prior to the 2002 taxation year;
* a return with a taxation year greater than 371 days.

You cannot use the Corporation Internet Filing service to change the corporation’s:

* name;
* head office or mailing addresses;
* direct deposit information (including new requests).

For information on changing your name, address, or about direct deposit, contact the Business Window in your tax services office toll free at 1-800-959-5525 (English) or 1-800-959-7775 (French).
Non-resident corporations can use the Corporation Internet Filing service for 2006 and subsequent TYEs when any of the following conditions apply

* claiming an exemption under an income tax treaty;
* earning income from a business carried on in Canada through a branch office.

There are some restrictions for the eligible non-resident corporations. When filing your return, if your corporation does not meet the eligibility criteria, you will receive a message explaining the restriction and the resolution.

To file your return through the Corporation Internet Filing service, you have to agree to certain terms and conditions. You should review these terms and conditions in Ready to file? before completing your return. If you agree to these terms and conditions, you’ll have to enter the following information for authentication purposes:

* Business Number;
* Taxation Year End;
* Corporation’s assigned Web Access Code or EFILE On-Line number and password;
* Path and name of the file containing your electronic corporation income tax return (”.cor” file extension).

The Business Number, Taxation Year End, and Web Access Code or EFILE On-Line number and password are the three pieces of identification information that make up your electronic signature.

After you enter this information, you have to read and agree to a declaration certifying that the attached electronic return is correct, complete, and accurate, and confirming that you did not change the corporation’s name, addresses or direct deposit information on the return. You then select the appropriate link to indicate whether you are ready to file the tax return. If you decide to file, be sure to wait a minute or two while your file is loaded.

We will do a preliminary check of your return. If your return meets the basic requirements, you’ll receive your confirmation number. This means that your tax return has been accepted for processing. Keep this confirmation number for your records.

If there are any problems with the electronic tax return you tried to send us, we’ll send you an explanation of errors or corrections needed. This means your tax return was not accepted for processing. You should save, print, or make note of all messages we send. Before trying to retransmit the return, you must change the electronic version of the tax return by making the appropriate corrections according to the error messages you received. For information on making changes to an electronic tax return, see Correcting your electronic tax return.

A filing date is established upon successful validation of the electronic signature. The filing date will remain in effect as long as errors are corrected and the filer retransmits the return within five business days (excluding statutory holidays). If successful validation occurs after the five business days, the filing date is the date that the confirmation number is issued.

If your return has been accepted for processing, do not submit a paper copy of the return. After we have processed your return, we may have to contact you to obtain supporting documents, so remember to keep your receipts and information slips for at least six years. This is part of the same verification process that applies to all tax returns, whether paper or electronic.