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.
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.
CRA recently announced that the Fuel Charge Proceeds to Farmers Credit and the Eligible Educator School Tax Credit received Parliamentary Approval on June 9, 2022.
What happens next? This means that the CRA will now be able to process the tax returns of those who claimed these credits.
No further action is required for Canadians who have already filed and claimed the Educators School Tax Credit or the Fuel Charge Proceed to Farmers Credit on their 2021 income tax and benefit return. The CRA will process their return, apply the respective credits to their tax return, and send them their NOA.
The CRA recognizes that waiting for a response in these situations is stressful and aims to address cases as fast as possible to ensure that taxpayers get the credits.
Canadians who chose to file their 2021 income tax and benefit return without these credits, and have already received their NOA, can make any changes or adjustments to their income tax and benefit return by using the ReFile or Change my return options.
Repayments can affect your taxes
The timing of when you repay a CERB amount may affect your taxes. Your repayment should appear on your T4A slip for the year you made the repayment.
If you repay a CERB amount before January 1, 2023, you can choose when and how to claim the deduction on your tax return.
You have the option to claim your repayments as a deduction in the year you made the repayment or in the year you received the benefit. You may also split the deduction between the tax years, as long as you do not deduct more than what you repaid.
When to report your repayments on your taxes
If repaid in 2020
Your repayment should have been subtracted from your total benefit amount on your 2020 T4A slip. You did not pay tax on amounts you repaid in 2020.
If repaid in 2021
Your repayment will be on your 2021 T4A slip. If you repaid a benefit amount you received in 2020, you can choose to:
* claim the deduction on your 2020 tax return
* claim the deduction on your 2021 tax return
* split the deduction between your tax returns
If repaid in 2022
Your repayment will be on your 2022 T4A slip. You should receive your T4A slip in early 2023.
You can choose to:
* claim the deduction on your tax return for the year you received the benefit (2020 or 2021)
* claim the deduction on your 2022 tax return
* split the deduction between your tax returns
Keep proof of your repayment if you claim the deduction before you receive your 2022 T4A slip.
If repaid in 2023 or later
If you repay a benefit amount after December 31, 2022, you can only claim a deduction in the year you make the repayment.
As you are undoubtedly aware, MFA now applies to all Representatives. If you have not yet registered for the MFA system, you will be required to register for it next time you log into CRA’s portals.
In brief, the system requires that you obtain a passcode every time you log in to the RAC portal, in addition to signing in with your username and password. This means you could receive a new passcode multiple times a day from the CRA (6-digit numeric code via SMS text), one for every time you log back into the system.
Alternatively, you will need to refer to the Passcode Grid card to enter your passcode (9-digit alphabetic code). Using the Passcode Grid means that you will not be required to receive a text; it is an alternative method.
When we first discussed the MFA system with the CRA (in January 2020) one of our suggestions to the CRA was that they modify the passcode process so that the first access code you receive to start your workday remains valid for a longer period of time and for unlimited logins to the system during that time period.
We are happy to report that CRA will be implementing our suggestion effective in February 7 – the MFA system will be modified so that passcodes at the start of a day will remain in effect for 8 hours (you will no longer need to request a new passcode simply because you have logged out of the system).
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 May 2023.
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.