Canadian Taxes Online: FAQ
Why e-file your tax return?It's easier, faster and has less risk. It can often be cheaper too. How's that?
- It's easier because these programs very often have templates you can simply fill in. E-file returns have a 1% error rate, while paper returns have a 20% error rate.
- It's faster because your return travels electronically; meaning only slightly slower than the speed of light. Your return is being processed faster too because it is much easier to check calculations electronically than on paper. E-file returns are promised in 18 to 28 days. In many cases your cheque comes through faster. A direct deposit to your bank account can take even less time. You just might be amazed.
- It has less risk of being lost. And the internet is secure. You may hear news items of hackers breaking into secure sites but these news stories are less and less frequent, even as the internet grows larger and larger.
- It's often cheaper simply because there is less cost involved. You are not paying an hourly wage to complete your return. A number of companies offer free downloads of software and then you do your taxes for a very low fee (sometimes less than $25).
To make a change after filing you must phone your tax centre or send them a letter. You need to explain to them what changes need to be made and give them all relevant tax information, including your SIN etc.
Is filing taxes over the internet safe and secure?
Be sure that you are using a site that employs encryption. This means that information is "scrambled" so that it can only be understood by the server for whom it is destined. The highest standard for encryption today is the 128-bit Secure Sockets Layer Version 3.0 (SSLV3) protocol. This is the standard for services such as online banking or shopping.
Is there any software that is approved by the Canadian Revenue Agency?
The Canadian Revenue Agency does have list of NETFILE providers, although it does not endorse any particular brand or product.
How do I sign my e-filed tax return?
You need to have a web access code provided to you by the CRA or supply the EFILE on-line number and password. These make up an electronic signature which is considered official. See the CRA website for full details or it may be supplied by the online filing service you use.
