Module-2

Gateway to the CRA: E-File Registration

1. Overview of EFILE

EFILE is an automated CRA service that allows certified tax preparers to electronically file T1 and certain T3 returns directly from CRA‑certified tax software.

Key Characteristics

Used only for filing income tax returns — any other use is prohibited
Allows filing of current year + 7 prior years
Provides instant acceptance/rejection messages
Supports batch filing (multiple returns at once)
Updated regularly — preparers must monitor CRA EFILE news

2. Eligibility Requirements

Who Can Use EFILE

Any individual, firm, or organization providing tax preparation services and meeting CRA suitability screening criteria.

Services Available Through EFILE

T1 EFILE
ReFILE (amended T1)
Corporation Internet Filing
T1135 transmission
Auto‑fill my return
Authorizing a Representative
Client Data Enquiry (CDE)
Email notifications
Notice of Assessment in software
Business authorization transmission

Mandatory Electronic Filing (MEF)

Tax preparers who prepare more than 5 returns (T1, T2, or T3) for payment must file electronically.

CVITP Volunteers

Must:

3. Suitability Screening

Purpose of Screening

Protect the tax system
Maintain public confidence
Ensure high standards of conduct
Assess the risk of electronic filers

Timing

Screening begins every October
Processing takes up to 30 business days
Access is limited to account maintenance until approved

The definition of Applicant includes:

Sole proprietors
Partners (managing partners for large firms)
Directors/officers/controlling shareholders
Branch managers
Franchise owners
Anyone with management/control
Sub‑contractors preparing T1 returns

Employees are not applicants unless they meet the above criteria.

Applicant Requirements

Must:

Be 18+
Be a Canadian resident
Have a valid SIN
Be a discharged bankrupt (if applicable)

Screening Criteria

Applicants must not have:

Convictions under tax legislation
Penalties under tax legislation
Failure to file required returns
Failure to report self‑employment income
Failure to pay/collect/remit taxes
Failure to register for GST/HST (if required)
Failure to keep adequate books/records
Outstanding tax debt without a payment arrangement
Misrepresentations on applications
Prior suspensions or rejections
Association with suspended individuals
Fraud, dishonesty, or disreputable conduct

CRA may still approve applicants if the issues were:

Minor
Isolated
Occurred long ago

If Denied

Applicants may request an administrative review within 90 days.

4. Responsibilities of Electronic Filers

General Responsibilities

Renew annually
Update CRA on any changes
Deal directly with clients (no unregistered intermediaries)
Verify client identity and documents
Ensure T183 is completed and signed before filing
Attach POA or death certificate to T183 when applicable
Prepare and file returns in Canada using CRA‑certified software
Keep EFILE number/password confidential
Correct rejected returns promptly
Inform clients of delays or changes to refunds/balances
Protect confidentiality and follow security best practices
Dispose of documents securely
Comply with the Income Tax Act

Advertising Rules

Preparers must NOT:

Use CRA logos or imply CRA endorsement
Use the words “authorized” or “agent.”
Provide misleading statements
Quote processing times are inconsistent with CRA timelines

Using CRA publications in advertising requires CRA approval.

Monitoring

CRA monitors:

T183 compliance
Transmission quality
Complaints
Error rates

CRA may request:

Copies of T183
Explanations for errors

Suspension Conditions

CRA may suspend EFILE privileges for:

Failure to validate client identity
Using EFILE for non‑filing purposes
Confidentiality breaches
Filing from outside Canada
Failing suitability criteria
High error rates
Unethical practices
Missing/incorrect T183 forms
Stockpiling returns
Complaints
Failure to report lost passwords or data breaches
Transmitting for unregistered preparers
Not updating registration information

Suspension may occur with or without warning.

5. Applying for EFILE

How to Apply

Complete the EFILE Registration Online form
Provide RepID for each applicant
Up to 15 applicants can be listed
Must renew annually

Important Notes

Individuals filing only a few returns will be denied
All applications must be online
No fee
Must use CRA‑certified software

Issuance of EFILE Number & Password

System validates the application
Confirmation page displays EFILE number + password
Access is limited until screening is complete
Keep credentials confidential

When to Apply

Before December 31 to ensure approval before the filing season.

6. Filing Returns Through EFILE

T1 EFILE Availability

For the 2025 season:

Open Feb 24, 2025 → Jan 30, 2026
Can file initial returns for 2017–2024
Can ReFILE amended returns for 2021–2024

Steps to File a Return

Register/renew and receive approval
Prepare return
Complete and sign T183
Use CRA‑certified software
Transmit through EFILE web service
Receive instant acceptance/rejection

A return is considered filed only when CRA issues a confirmation number.

Correcting an Electronic Return

Use ReFILE (if eligible)
Or use My Account / Represent a Client
If rejected, correct errors and retransmit

7. Paper Documentation Requirements

Elections

Must be submitted on paper by the due date.

Examples:

Elections
Designations
Agreements
Waivers
Special elective returns

Documentation must include:

Client name
Address
SIN
Statement that it supports an electronically filed return

Other documents must be retained and provided only if CRA requests them.

8. Exclusions — When EFILE Cannot Be Used

EFILE cannot be used for:

Certain non‑residents
Certain deemed residents
Most deceased returns (except specific pre‑bankruptcy cases)
Emigrant returns with specific forms (T1243, T1244, T1161, T2203)
Returns involving certain foreign income, credits, or special tax situations
Returns involving complex farming income
Returns involving specific credits, deductions, or slip types

9. Security Requirements

CRA Responsibilities

Encrypt all transmitted data
Secure storage
Use advanced security protocols

Electronic Filer Responsibilities

Keep EFILE number/password secure
Clear the browser cache after use
Use firewalls and avoid storing client data on shared drives
Never email SINs
Dispose of documents securely

10. Verification Programs

Pre‑Assessment Review

Certain returns are flagged for review before assessment
May delay processing
Supporting documents requested only if needed

Processing Review

Routine post‑assessment review
CRA may request supporting documents
Does not imply wrongdoing