Electronic filing of tax returns jumps 45.2 per cent this year

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This article was published 13/04/2002 (8660 days ago), so information in it may no longer be current.

With only a couple of weeks to go until the April 30 income tax deadline, Canadians are filing their returns electronically like never before.

The Canada Customs and Revenue Agency (CCRA) has released figures showing a 45.2 per cent increase in the number of people using its NETFILE service to file their tax returns over the Internet this year, compared to this time last year.

“We have noticed a substantial increase,” Emilia Cotris of the CCRA said in an interview yesterday. “A large portion of the population is quite tech savvy and comfortable using a computer.”

As of Thursday about 1.35 million taxpayers had used NETFILE. The total number of returns filed so far is 10.5 million, Cotris said. That means about 10 per cent of taxpayers are filing electronically.

This increase in electronic filing isn’t really surprising. With more than half the Canadian population connected to the Internet, filing electronically has become the easiest way to submit your income tax return.

Last year, the first year NETFILE was available, a total of 1.4 million returns were filed electronically.

Cotris said 22 million taxpayers are expected to file by the April 30 deadline, and a significant percentage of those yet to file are like likely to use NETFILE.

Not surprisingly, those who have not filed yet likely own money to the taxman. Cotris said about 60 per cent of taxpayers get refunds and most of those people already have filed. “The ones that owe us money leave it as late as possible,” said Cotris.

Using NETFILE is simple, easy and quick. To its credit, the CCRA has built a terrific interface for the commercial software packages it has certified for use by Canadian taxpayers.

A key advantage to electronic filing, Cotris said, is that the returns are more accurate and therefore are processed faster. “We say refunds can be expected in two weeks, but in reality, it is taking 10 days or less.”

I used NETFILE for my return at the end of February. My refund was deposited electronically into my bank account six days later.

Cotris said a great deal of work and testing went into the security and protection aspects of the NETFILE system. “Our protection and security system is quite sophisticates. There have be no breaches.”

When you file electronically, there is nothing to mail in. However, the CCRA says you must hold onto your T4s and other receipts in case they want to see them at a later date. Cotris said you should keep these records for at least six years.

If you do owe money, you can still use the NETFILE system. You will be advised how and where to send your money at the end of the filing process.

To file electronically, you will need an Internet connection and must purchase one of those certified software applications. Prices vary with each company and the number and type of return you are filing.

There are some restrictions on who can use the NETFILE system, but the majority of taxpayers are eligible. You also will need a four-digit NETFILE access code. This code is printed on the mailing label of your T1 personal income tax return package. If you didn’t get a code, call 1-800-714-7257. The NETFILE service is available until June 30, although if you owe money and file that late, there will be added interest.

This year four companies have had their software products certified by the CCRA. Deciding which one to use is a matter of choice and somewhat dependent on the type of computer you have. All are available in both English or French.

The four are:

z Colin Griffiths & Associates Ltd. — GriffTax Individual; 1-877-226-7908; e-mail support@grifftax.ca; www.grifftax.ca (Macintosh only).

z Dr Tax-Ufile.ca Inc. — Ufile.ca; help@ufile.ca; www.ufile.ca; (Web-based application, supports Windows and Macintosh). The service is free for low-income individuals.

z Intuit Canada Limited — QuickTax, QuickTax for Macintosh, QuickTaxWeb; 1-888-829-8608; InfoNet@intuit.com; www.intuit.com/canada/quicktax (for Windows users); www.intuit.com/canada/quicktax/mac.html (for Mac users); www.quicktaxweb.ca (Web-based application, supports Windows and Macintosh.) QuickTaxWeb is free for low-income individuals.

z Taxamatic Inc. — TAXWIZ DELUXE, TAXWIZ On-Line; 1-905-707-9529; support@taxwiz.ca; www.taxwiz.ca (for Windows users); www.taxwiz.ca/taxwiz2001/product3overview.html (Web-based application, supports Windows and Macintosh).

You can get more information at the CCRA’s NETFILE Web site at www.netfile.gc.ca.

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