By Esther S.J. Oh

CRA’s Guidance on Filing Information Returns Electronically (Tax Slips and Summaries)

The Canada Revenue Agency’s (“CRA”) webpage on electronic filing, which was last updated on October 18, 2024, outlines how tax information returns can be filed electronically, such as T4, T4A, T5 and other types of returns, through online methods. It details options like Web Forms and Internet File Transfer (XML) for submitting original, amended, or canceled returns securely. Benefits include quick confirmation of successful filing, flexibility to update filings, and the option for authorized representatives to file on a taxpayer’s/organization’s behalf. There is also guidance on making post-filing corrections.

The webpage covers the following four sections, hyperlinked to each page:

a)            Get ready to file

The CRA’s instructions on electronic filing covers key steps for businesses, including steps to determine the filing due date, determine if an organization must file electronically, and using XML formatting specifications for valid submission. The page outlines penalties that apply for incorrect submission methods and provides resources for setting up compatible XML files, with specific instructions on encoding and schema validation for different tax forms. Compliance is crucial as of 2024, as more returns require digital filing.

The 2025 XML specifications and schema for the electronic filing of information returns are now available, and will be accepted for processing starting January 13, 2025.

b)            How to file

The CRA outlines the steps for electronically filing information returns as follows:

• Prepare Documentation: Create an XML file for your return.
• Determine your filing method: Use either Web Forms for small volumes (up to 100 slips) or Internet file transfer for larger submissions. These can be accessed via My Business Account or Represent a Client. To access directly to the Web Forms or Internet file transfer applications, you will need your account number or web access code.
• Transfer the file to the CRA: Instructions are provided for filing with Web Forms or Internet file transfer. Send your file, and receive a confirmation to ensure it was successfully filed.

The CRA webpage currently notes that electronic filing will be temporarily unavailable from December 2, 2024, to January 13, 2025.

c)            Make correction after filing

The CRA provides a clear process for amending or canceling tax slips after an initial filing. Both Web Forms and Internet File Transfer (XML) can handle corrections, allowing users to adjust data while following the CRA’s specific protocols.

d)            Contact us

The CRA’s contact page for electronic filing of tax returns provides resources for additional support, including links for technical help, secure email, and phone contacts.

Updated Guidance on Relief of Poverty and Charitable Registration Released

On October 23, 2024, the CRA released an updated version of guidance CG-029: Relief of poverty and charitable registration (the “Updated Guidance”). First reported on in the January 2021 Charity and NFP Law Update, the Guidance expanded on the brief description previously published in summary policy CSP-P03: Poverty, and provided an outline of charity law issues to help charities and applicants for charitable registration comply with the requirements of Canadian common law and the Income Tax Act (“ITA”). The latest provide a number of brief but significant changes.

Firstly, the Updated Guidance now has additional guidelines for determining eligibility for affordable housing in a specific community or area. These guidelines are specific to the locales in which an individual would be seeking housing, and are consistent with federally funded affordable housing programs. For example, in Toronto in 2024, a household seeking a three-bedroom accommodation would have an income threshold of $79,000.

Secondly, the Updated Guidance now includes a brief reference to the new granting regime which allows charities to make grants to non-qualified donees, a topic discussed numerous times in this publication. The Updated Guidance, while not describing this in depth, makes reference to other guidances, such as Guidance CG-032, Registered charities making grants to non-qualified donees.

Finally, the Updated Guidance has a number of changes for reader clarity, including plain language edits, updated terminology, and reorganized content in order make the document easier to navigate and understand. More examples for specific situations are provided for greater depth and understanding of the issues.

Charities are encouraged to review the Updated Guidance to ensure they are up to date on the changes. 

​Read the October 2024 Charity & NFP Law Update