Corporation Internet Filing - General
The Corporation Internet Filing option was developed to offer clients a convenient affordable filing option. By adopting this option the CRA is demonstrating its commitment to the Government Online Initiative.
All corporations with gross revenue in excess of $ 1 million and filing a return with tax year ending in 2010 and subsequent will be required to Internet file their return using the CIF service with the exception of:
- non-resident corporations;
- insurance corporations;
- corporations reporting in functional currency; and
- corporations those are exempt from tax under section 149 of the Income Tax Act.
The gross revenue in excess of $ 1 million will be determined by the total of lines 1258299, Total revenue and 1259659, Total farm revenue.
Attributes of the Corporation Internet Filing
- The Internet option requires the development of high quality software; which must be approved by the CRA before clients can prepare and file returns
- Certain types of corporations are excluded from this option.
To use the Corporation Internet Filing service, a corporation must:
- be a resident of Canada;
- be a non-resident and the following conditions are met:
- the Canadian income of the non-resident corporation is Treaty-based exempt corporation or a Canadian Branch (type 01 or 07 on line 300 of Schedule 97), and
- tax withheld doesn`t exceed $99,999 or if it is the first year, the tax withheld doesn`t exceed $24,999 (line 800 of Form 200);
- not be an insurance company.
A corporation cannot use Corporation Internet Filing to send:
- an amended return,
- insurance corporations;
A corporation cannot use Corporation Internet Filing service to change the corporation`s:
- head office or mailing addresses,
- direct deposit information (including new requests).
- Any changes to address, direct deposit information or language of correspondence on the return will not be action by CRA, they must be done previously on a letter, online or on the phone by contacting Business Enquiries line.
- You may submit the return using a personal computer that can access the CRA`s website. You have the option of transmitting the return using an EFILE number and password or using Web Access Code (WAC) (assigned to the corporation by the CRA). You will need the Business Number (BN) of the corporation for the return being filed, the tax year end (TYE) of the corporation return being filed, and the Web Access Code (WAC) or EFILE number and password. The person filing the return will have access too easy to understand filing instructions on the CRA Internet site
- The file, which is the corporation tax return, will have a .cor extension. It is not necessary for this file to be encrypted prior to transmission. The CRA`s Internet filing facility provides the necessary encryption and security features.
- The person filing the return will receive a confirmation number within seconds of the return being filed, or an error message where filing is not accepted or has been denied.
- The information return, form T183 (CORP), Information Return for Corporations Filing Electronically, is held by you or your representative.
The Internet filing process is described in detail on the CRA`s Web site at http://www.cra-arc.gc.ca/esrvc-srvce/tx/bsnss/crpnt/strt-eng.html We recommend you review instruction prior to beginning the internet filing procedure.
Return T183 - Mandatory
T183, Information Return for Corporations Filing Electronically, is the certification form, which must be completed when electronically filing a T2 return. This form is located in the Federal Tab and can be completed on line then printed. The form is not filed with the electronic return, but maintained by the corporation and the person who files the tax return over the Internet.
Part F of Form T183 must be completed in duplicate and signed by the taxpayer, or the person who is required to file the return under the Income Tax Act (examples: Trustee in Bankruptcy or Legal Representative), before the return is transmitted.
The form is year specific and only the current year version is acceptable.
Note: The use of signature labels on Form T183 is not acceptable. A signature other than the taxpayer's, the Trustee's, or the Legal Representative's, is acceptable as long as an applicable power of attorney exists.
The entries entered on Form T183 must accurately reflect the entries on the electronic return. If the return is not accepted as originally transmitted, and the changes required for re-transmission alter the refund or balance owing by more than $300, a new Form T183 must be completed and signed.
Part H - Document Control Number (DCN)
EFILE software generates a Document Control Number at the time a record is created. Record this DCN in Part H. In addition, for each EFILE Online return accepted, the system generates a confirmation number. This confirmation number should also be recorded in Part H of the form.
As required by subsection 150.1(4) of the Income Tax Act, both you and your client have to keep a copy of the completed Form T183. Do not to submit the form unless CRA asks for it. Keep your copy in a secure location.
Form T183 must be kept for at least six years following the date that the return was filed. Written permission is required for you or your client to destroy Form T183 before the six-year period is up. For more information, see Information Circular IC78-10R5, Books and Records Retention/Destruction.
How to create .COR file
If you meet the criteria for Corporate Internet Filing then you must create a .COR file for submission to CRA. Follow this few simple steps then submit file to CRA by following the instructions on their website at http://www.cra-arc.gc.ca/esrvc-srvce/tx/bsnss/crpnt/strt-eng.html
- Execute Insuretax.
- Open Company
- Click File
- Select Create NetFile
- Insuretax will perform a diagnostic test of your data, if you have any errors they must be corrected prior to creating .COR file. If you encounter any errors your are unsure of please contact Insuretax 416 704 3265 and we will assist you in correcting them
- Once you have resolved all errors (No critical errors found) on diagnostic report, click Close
- A dialog box will open that enables you to create directory to save .COR file
- Enter File name
- Default file type will be .COR
- Follow CRA instructions on above website to summit file
- Complete and sign form T183 and keep for your records
Amended Federal Return and T2 Bar Code Return (T2 BCR)
As of October 2012, CRA can capture the information from an amended return in the T2 BCR format. An amended T2 BCR cannot be used to change the following information:
- 200010: Head office address change
- 200020: Mailing address change
- 200030: Location of books and records change
- 200910, 200914 and 200918: Direct deposit information
- 200990: Language of correspondence
To identify an amended T2 Return, line 200997 (Amended return indicator) and line 200996 (Description of changes) must be used on Schedule 200, Page 1 and be part of the amended T2 BCR.
If the amended return indicator is 1 (Yes) at line 200997:
- a relevant description of changes is mandatory at line 200996, and
- letter A must be printed on the first page of the T2 BCR.
The amended T2 BCR must include all returns and schedules, i.e. not only the returns and schedules revised.
All schedules included in the amended T2 BCR are considered as amended. This means data from amended schedules will overlay the previous data.
Example 1 - Lines/rows not included in a schedule of the amended T2 BCR but existed previously. Even if the intention of the request is to simply increase the revenue on one of the Schedule 125 revenue lines, the entire Schedule 125 will have to be completed and included in the amended T2 BCR. If only the increase is completed, the new Schedule 125 included in the amended T2 BCR will be considered to have only one entry.
Note: Same process if a row existed previously but no longer exists on the schedule in the amended T2 BCR.
Example 2 - Schedule not included in the amended T2 BCR but existed previously. If a schedule was filed previously for example, in the initial return and is not included with the amended T2 BCR, this schedule won`t be considered.
Example 3 - Combination of example 1 and 2: For looping schedules as Schedule 125, if there is only one existing Schedule 125, the new Schedule 125 includes in the amended T2 BCR will replace the existing one. If there are three existing Schedule 125 and only one new Schedule 125 is included in the amended T2 BCR, the new Schedule 125 will become Schedule 125 sequence-1 and the existing Schedule 125 sequence-2 and 125 sequence-3 won`t be considered.
Roll Forward Module has been integrated into Insuretax
The Insuretax roll forward module has been removed and is now integrated into the Insuretax Module. The basic function has not changed. The Roll Forward Icon will no longer function and can be deleted from your desktop
To Roll Forward prior year data:
- Execute Insuretax.
- Select Company you want to Roll Forward
- Click Roll Forward Button.
- A dialog box will appear prompting you to enter File Name:(this is a file name not the official Company name that will appear on your returns) Taxation year beginning and end date
- Edit these fields if defaults are not correct
- You have the option of rolling forward:
- Notes - If you wish to roll forward notes check the notes box
- T2 schedules only
- Investment part
- All. This will roll forward T2 schedules and investment information into a new file for the next taxation year.
- Click Next
- Click OK when you see the Roll forward completed dialog box .
- Return to the Main Menu. You will see that a new company was created with the file name you entered above.
Note: If data for Tax 15A, 15A (L), Tax 16 and Tax 16(L) have been entered at the summary level the roll forward feature cannot function properly. For those users who choose to use summarized information the roll forward of these schedules will have to be done manually.
Backup/Restore Module has been integrated into Insuretax
The Insuretax Backup/Restore module has now been integrated into the Insuretax Module. The basic function has not changed. This module creates a .BCK file which contains all the company data for easy restoration in the event that your data is lost for any reason. Insuretax highly recommends that backups be created often during the filing process and before each installation.
The Backup/Restore module can be activated from the Main Menu of Insuretax
- Execute Insuretax.
- Click on Tools
- Select Backup/Restore your Company
- Select either Backup or Restore tab and proceed with online instructions
NAICS is a mandatory field located on Schedule 200 page 3 field 299. For the 2012 filing year CRA has revised the NAICS codes. New codes have been added and format changed so it is mandatory that all users re-enter their NAICS code for this filing year.
- Go to Schedule 200 page 3 field 299
- Click on List of NAICS codes.
- Click on Business type
- Select code from drop down list
- Click Select
- Field 299 will be populated with NAICS code