By Jacqueline M. Demczur

CRA Encourages Electronic Filing of T2

In a news release published on August 11, 2022, the Canada Revenue Agency (CRA) is encouraging resident corporations, including non-profit organizations, tax-exempt corporations and inactive corporations, to file their T2, Corporation Income Tax Return, electronically. According to the CRA, electronic filing is more efficient. Corporations will receive immediate confirmation that their return has been received, have faster processing and refunds, save on mailing costs and help the environment by reducing paper usage.

Corporations preparing their T2 through tax preparation software must use CRA certified software in order to be sure that their software meets the CRA’s specifications. Additionally, corporations may file their T2 electronically via the federal government’s Corporation Internet Filing service, My Business Account (for business owners), or Represent a Client (for authorized representatives or employees). Those filing electronically may also be able to take advantage of certain services, including T2 Auto-fill, T2 Attach-a-doc, and T2 Pre-Filing Validation, all described in greater detail in the CRA’s news release.

Of note, all corporations with an annual gross revenue of greater than $1 million are now required to file their T2 electronically, though certain corporations are exempt from this requirement, including those exempt from tax payable under section 149 of the Income Tax Act. Corporations that are unable to file electronically may print the T2 Bar Code Return and mail it to the CRA. Faxed T2 filings are not accepted.

​Read the August 2022 Year Charity & NFP Law Update