Saskatchewan: CRA changes to note

SASKATCHEWAN – Tax season for most is a few months away but, as it creeps ever closer, individuals and businesses may want to review some of the changes that have come into effect in the way things are done at the Canada Revenue Agency (CRA).

According to the CRA, all GST/HST registrants, except charities and selected listed financial institutions, were required to file their returns electronically for any reporting periods that began after Dec. 31, 2023. Those who choose to not file their returns electronically are now subject to some penalties. ‘Failure to file electronically’ the first time will result in a penalty of $100 and subsequent returns submitted by paper will be penalized $250 for each return.

This applies to all GST/HST registrants including farmers.

The CRA sent letters to those who preferred to file by paper, advising them the mandatory electronic filing threshold had been removed, that paper filers were now obligated to file electronically, and that the required access code was included with their filing packages. The penalties will apply even if the GST/ HST return is a “nil” or a credit return. For registrants who file annually, this will apply to 2024 returns that are due in 2025.

The CRA says filing online is much safer and more secure than by mail. They use secure networks for data, where paper processing is more vulnerable to errors and disruptions such as postal strikes, but one of the biggest benefits, claims the CRA, is time and money savings for both the recipient and the CRA. Registrants who do not have access to a computer, or reliable internet, are still able to use the GST/ HST TeleFile, by using a touchtone phone and an access code to file their returns.

They can also seek the expertise of their local accountants as many can help with filing returns electronically. If this is still not a viable solution, a written request to continue paper filing can be sent to the Atlantic Tax Centre.

Business transition to online correspondence

For businesses, starting in spring 2025, the CRA will transition to online mail as the default method of delivering most business correspondence which refers to notices, letters, forms, statements, and other documents that the CRA sends to communicate important information about a business tax account or returns. This change applies to all existing businesses registered for My Business Account, new business number and program account registrations, and businesses with a representative that accesses the CRA’s services on their behalf via Represent a Client.

This change is said to also be part of the CRA’s ongoing efforts to improve service delivery by making it faster, easier, and more secure for businesses to manage their tax obligations online. Online mail means businesses must sign in to their My Business Account to receive correspondence, such as a notice of assessment. 

If businesses would like to continue receiving correspondence by paper mail, they will need to request to activate paper mail. Starting in May 2025, paper mail can be requested in one of two ways:

• Select paper mail as the delivery method for correspondence in My Business Account.
• Fill out and mail form RC681– Request to Activate Paper Mail for Business.

Automatic Tax Filing

The 2024 federal budget also said the CRA would expand access to a service set up in 2018 that allows some Canadians with lower or fixed incomes to auto-file simple returns over the telephone. The finance minister stated that two million Canadians will be eligible for that service, called “File My Return,” by 2025, nearly three times the number of people who can use it now. Currently, low-income Canadians are generally not required to file tax returns every year unless they owe money, but the federal government increasingly relies on the Canada Revenue Agency to deliver income-tested benefits to individuals.

In a 2020 report co-authored by Jennifer Robson, an associate professor in political management at Carleton University, it was estimated that 10 to 12 per cent of Canadians do not file their taxes, and although there were non-filers across all income groups, they were most heavily concentrated in lower income brackets. Experts and advocates have long called for automatic filing, noting many vulnerable Canadians miss out on benefits to which they are entitled. The CRA will roll out the new automatic system to help vulnerable Canadians who do not file their taxes get their benefits.

The move toward automatic tax filing, first promised in the 2020 speech from the throne, is one of several budget measures the government says are meant to help Canadians with the cost of living.

Carol Baldwin is a Local Journalism Initiative reporter with the Wakaw Recorder in Wakaw, Saskatchewan. Title image by Erika Wittlieb from Pixabay.