About EFILE

Corporate Taxprep allows you to file corporate returns by Internet to the Canada Revenue Agency (CRA).

Corporation Internet Filing (CIF) is one of the electronic tax filing options of the CRA.

This filing option allows corporations meeting the eligibility criteria to file their corporate income tax returns, for taxation years that start on or after January 1, 2007, directly to the CRA by Internet, using a Web Access Code or a number and password for EFILE On-Line.

Eligibility requirement

To check whether a return meets the eligibility requirements for Internet Filing, display the diagnostics pane after having selected the return for T2 EFILE, and click the T2 EFILE tab to review the EFILE diagnostics. Errors creating the reject of returns must be corrected in order for the return to be eligible for the use of the corresponding electronic service.

Mandatory Internet Filing

With the proposed modifications to subsection 205.1(2) of the Income Tax Regulations, subsection 150.1(2.1) LIR makes it mandatory for all corporations to file their T2 return using the T2 EFILE service for a taxation year beginning after 2021 except for:

Insurance corporations
non-resident corporations
corporations reporting in functional currency and
corporations exempt from tax under section 149 ITA

For a taxation year beginning before 2022, the requirement applies to corporations that reports a gross revenue in excess of $1 million. The gross revenue is equal to the total of line 8299, Total revenue and line 9659, Total farm revenue in Schedule 125, Income Statement Information (Jump Code: G125).

Mandatory Internet Filing for tax preparer

According to the proposed modifications to subsection 150.1(2.2) ITA, a “tax preparer” means a person or partnership who, in a calendar year, accepts consideration to prepare more than five returns of income (instead of the previous ten) of corporations, more than five returns of income (instead of the previous ten) of individuals, or more than five returns of income of estates or trusts.

Subsection 150.1(2.3) ITA specifies that tax preparers are required to electronically file any tax return they prepare for consideration. However, note that, for the calendar year 2022, the CRA should not assess the penalty when the tax preparer exceeds the five returns threshold without surpassing the old threshold of ten returns as well as without considering the returns of income of estates or trusts that are paper filed.

Note: You must ensure to file your returns in the appropriate format.

Restrictions on using Corporation Internet Filing

The following restrictions apply to the use of Corporation Internet Filing:

large, complex files are not accepted. If your transmission exceeds the acceptable size, you will receive a warning message at transmission;
the service cannot be used to file a return covering a taxation year starting before January 1, 2007;
the following information cannot be amended via CIF: the corporation's name, mailing or head office address.

How to register for Internet Filing

For Corporation Internet filing, the CRA allows you to use either the Web Access Code provided to the corporation concerned or, if you are a tax professional filing individual income tax returns, the number and password obtained when you registered for EFILE On-Line.

If you are a tax professional who is transmitting personal income tax returns, Revenu Québec allows you to use the preparer number and the password provided to you when you registered for NetFile Québec.

How to register or renew with CRA for EFILE

A new registration or a renewal must be made on-line on the CRA Web site.

New registration

For a new T2 EFILE registration, proceed as follows:

Access the CRA Web site at https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/efile-electronic-filers.html.
Click the "Apply for EFILE" section title.
Carefully read the information provided by the CRA, then click the EFILE Registration Online form hyperlink in the "How can I apply" section.
Enter the information requested by the CRA.
Click Submit registration to submit your registration.

The CRA system will verify the submitted form and will generate, if applicable, an error message. Make the required corrections, and resubmit the form.

A confirmation page containing your EFILE number and password will display. Remember to print this page for your records.

The CRA must screen your suitability. While this activity is being carried out, the access normally provided by your EFILE number and password will be restricted and you will be limited to performing EFILE On-Line account maintenance activities only. You will not be permitted to file T1 and T2 returns.

The CRA will notify you by e-mail when suitability screening has been completed and all criteria successfully met. You will then be able to access all EFILE options.

Renewal

Yearly renewal is mandatory for you want to continue using EFILE.

For a renewal of your registration, proceed as follows:

Access the CRA Web site at https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/efile-electronic-filers.html.
Click Yearly renewal.
Carefully read the information provided by the CRA, then click the log in hyperlink to access the system.
The EFILE - Log in page displays.
Enter your EFILE number and password, then click Login.
A page displays.
Click Submit Renewal.

The CRA system will verify certain information on your form and, if applicable, will send you error message(s). Make the required corrections, and resubmit the form.

A confirmation page containing your new password will display once the form has been accepted and your registration has been renewed.

When is a new application necessary

If your business has undergone one or more of the following changes, you must submit a new application:

a business is sold;
a business's organizational structure, partnership composition, or controlling interest changes;
branch sites or managing offices are added;
names of firms or business names change; or
partners or corporate officers change.

Contact your EFILE help desk if you need more information about your specific situation. If you do submit a new application, contact your EFILE help desk and ask them to cancel your existing EFILE number and password.

How to register for Clic Revenu

To use Clic Revenu's Internet filing of corporation income tax returns, you must register with Clic Revenu electronic services of Revenu Québec.

If you want to file a return other than the return from your own corporation, you must obtain a power of attorney from your client.

To register for Clic Revenu's electronic services, consult the Revenu Québec Web page Registering a business with ClicSéqur.

How to register for NetFile Québec

NetFile Québec

If you want to use NetFile Québec, you must register for My Account for Professional Representatives (available in French only).

Consult the Revenu Québec web page “À qui s'adresse Mon dossier pour les représentants professionnels?” (available in French only) to see which profile applies to you and what actions you can perform online on behalf of a business or an individual.

Important

Registration for My Account for professional representatives is the only way to get NetFile Québec transmission codes.

NetFile Québec Registration Renewal for Tax Preparers

The online NetFile Québec Registration Renewal for Tax Preparers is no longer available.

Important

Tax preparers are no longer required to register or renew their registration for NetFile Québec in order to request NetFile Québec transmission codes. Instead, they must now register for the secure space My Account for Professional Representatives (available in French only).
Consult the Revenu Québec web page “À qui s'adresse Mon dossier” (available in French only) to see which profile applies to you and what actions you can perform online on behalf of a business or an individual.
During conversion of the configuration, Corporate Taxprep retrieves the identification information required to use the Clic Revenu and NetFile Québec services that had been defined in the previous version of tCorporate Taxprep. For more information, consult the "Electronic Services - Identification" help topic.