EFILE Association of Canada

Formed in 1993, the EAC/ATC is a federally registered non-profit corporation, representing tax practitioners from all regions of Canada to senior management of the Canada Revenue Agency, Federal and Provincial Ministries of Revenue, as well as tax software providers.

Our membership consists of professionals and fully represents the Efile industry: from sole proprietors to large nationwide firms.  EAC/ATC members account for over one-third of all EFILED T1s in Canada.

What we do

One of the core functions of the EAC/ATC is to communicate directly with senior management of the CRA on behalf of members. As your conduit to the CRA, we meet regularly with senior managers of the CRA to discuss tax policy and administrative issues that affect all tax practitioners.

Over the years, the EAC/ATC has been successful in requesting changes to the EFILE system to facilitate the operation of a tax practice. Tax practitioners are the front line administrators of Canadian tax policy, and we are recognized as the professional association that senior management of the CRA turn to for industry comment and feedback.

We also produce and distribute our IMPACT Newsletter (published 3 times a year), providing important updates on developments within the tax and EFile service industry.  View a sample IMPACT Newsletter in the Library section of our website.  Previous editions of the IMPACT Newsletter are archived in the Library section and are available to EAC/ATC members.

Members also receive a copy of the annual EAC/ATC Tax Reference Booklet, a helpful guide for tax practitioners.

The EAC/ATC is governed by a national 15 member Board of Directors elected by the membership of the EAC/ATC at the Annual General Meeting. Members of the Board of Directors serve renewable 3-year terms.

Important Changes Coming to the Tax Preparation Industry

Outlined below is a summary of changes to the efile system that will directly affect all tax preparers.  The changes are expected to be in force for the next tax season, when the efile system reopens on February 21, 2022.

Rollout of Multi-factor Authentication (MFA) system with optional Passcode Grid

The MFA system is being rolled out to all efilers.  The system requires that you obtain a passcode every time you log into the CRA portal.  Typically the code is sent to your cell phone (6 digit code via SMS messaging).  Users can also download a Passcode Grid as an alternative to receiving an SMS message.  The Grid system uses a 9 digit passcode.

The passcode provides you with access into the CRA system.  Every time you log back into the system, you must use a new passcode to access RAC.  This means you could receive a new access code multiple times a day from the CRA (via SMS), one for every time you log back into the system.  Alternatively, you will need to refer to the Passcode Grid card to enter a new code.

We have requested that the CRA extend the timeline during which the passcode remains valid, reducing the need to access multiple passcodes during your work day.  Hopefully that will be implemented before the next tax season.

Changes to the Default Method of Correspondence (implementation postponed to July 2022)

Notices of Assessment

Budget 2021 proposes to amend the Income Tax Act to provide the CRA with the ability to send certain notices of assessment electronically without the taxpayer having to authorize the CRA to do so. This proposal will apply to individuals who file their income tax return electronically (via NETFILE) and those who employ the services of a tax preparer (via EFILE) to file their income tax return electronically.

Taxpayers who continue to file their income tax returns with the CRA in paper format will continue to receive a paper notice of assessment from the CRA.

This measure is expected to be in force by February 2022.

This will impact tax preparers directly: many may need to print the NOA or E-NOA for their clients, as the option to receive a paper NOA will be removed from the T183 form. Other options include providing a digital (e.g. PDF) copy to your client.  Alternatively, your client can retrieve the NOA through the My Account portal.

Correspondence with Businesses

Budget 2021 proposes to change the default method of correspondence for businesses that use the CRA’s My Business Account portal to electronic only.  However, businesses could still choose to also receive paper correspondence (this option must be requested in writing and will only be valid for two years).

This measure is expected to be in force by February 2022.

This measure will apply in respect of the Income Tax Act, Excise Tax Act, Excise Act, 2001, Air Travellers Security Charge Act and Part 1 of the Greenhouse Gas Pollution Pricing Act.

Information Returns

Budget 2021 proposes to amend the Income Tax Regulations to allow issuers of T4A (Statement of Pension, Retirement, Annuity and Other Income) and T5 (Statement of Investment Income) information returns to provide them electronically without having to also issue a paper copy and without the taxpayer having to authorize the issuer to do so.

This measure will apply in respect of information returns sent after 2021.