As tax season approaches for most Saskatchewan residents, frustration is mounting for some due to changes introduced by the Canada Revenue Agency (CRA).
One farmer in Unity received two separate Notices of Assessment, one for personal taxes and another related to a cooperative he is involved with. Both included a $100 penalty labelled “Failure to file electronically.” This has raised questions about the new rules and penalties for paper filers.
According to the CRA, all GST/HST registrants—except charities and selected listed financial institutions—must file their returns electronically for reporting periods after December 31, 2023.
Registrants who opt to file on paper now face financial penalties. A $100 penalty applies to the first paper return submitted, increasing to $250 for each subsequent return.
The CRA sent letters to previous paper filers advising them of the removal of the mandatory electronic filing threshold. These letters also included access codes needed for electronic filing. For annual filers, the penalties will take effect starting with the 2024 returns, which are due in 2025.
Benefits of Filing Electronically
The CRA emphasizes the advantages of electronic filing. Digital submissions save time and money for both taxpayers and the agency. Filers receive faster confirmation of their tax information, leading to quicker processing of refunds and credits.
Additionally, the CRA notes that electronic filing is more secure than paper filing. Data submitted through secure online networks is less prone to errors and disruptions compared to paper-based processes.
Options for Those Without Internet Access
Acknowledging concerns from those without computer access or reliable internet, the CRA continues to offer alternatives. The GST/HST TeleFile system allows taxpayers to file returns using a push-button phone and an access code.
For individuals unable to use TeleFile, written requests to continue filing on paper can be sent to the Atlantic Tax Centre for consideration.
Taxpayers can also consult local accountants, who are equipped to assist with electronic filing and ensure compliance with the new CRA requirements.