Update on filing tax returns electronically
Further to our March 8 update on T3 EFILE, we have received a communication from the CRA on the proposed changes on electronic filing for tax preparers contained in subsections 150.1(2.2) and (2.3) of the Income Tax Act. According to the CRA:
“In this transition year, the CRA will not assess the penalty for tax preparers who are liable to the penalty solely as a result of the proposed reduction of the threshold from 10 to 5 returns or the removal of the exemption for trust returns.”
Consequently, T3 returns for the 2021 taxation year can be filed on paper without penalty.