NETFILE

From Wikipedia - Reading time: 3 min

NETFILE is a transmission service that allows eligible Canadians to submit their personal income tax return to the Canada Revenue Agency using the Internet. Tax returns filed via NETFILE must first be prepared using a NETFILE-certified product. The software or Web application produces a .tax file, which must then be uploaded to the CRA independently to constitute a tax filing. NETFILE was introduced in 2001.[1]

According to CRA, 26% of total 2014 tax returns were sent by Netfile.[2] To Netfile taxes, users need a certified tax program, which is listed on the CRA website.

Advantages

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According to the CRA website:[3]

  • It is secure and confidential.
  • File your returns directly from one of the NETFILE-certified products available using the NETFILE webservice.
  • Refunds are issued faster (in most cases, with direct deposit, you can receive your refund in as little as eight business days).
  • It is more accurate (because the CRA doesn't re-key the information, there is less chance of errors).
  • You don't have to mail a paper return.
  • You don't have to send in receipts, unless the CRA asks for them at a later date.
  • You get immediate confirmation that the CRA has received your tax return.

Disadvantages

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  • You cannot change your address when you file your return using NETFILE.
  • Payments sent to CRA will be processed faster.
  • You are unable to ensure exactly what information was sent from your computer.
  • You require an internet connection.
  • You are required to use NETFILE certified tax software

See also

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References

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  1. ^ Radia, Purvi. "Canadians net benefits by filing taxes online." Archived 2011-06-05 at the Wayback Machine, Capital News Online, Ottawa, 9 March 2001. Retrieved on 2010-03-02
  2. ^ Jack Liu "3 ways to File.", Income Tax Ottawa. Retrieved on 2015-03-24
  3. ^ "NETFILE - Overview", Canadian Revenue Agency. Retrieved 2015-03-24.
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Licensed under CC BY-SA 3.0 | Source: https://en.wikipedia.org/wiki/NETFILE
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