Principal Issues: See Q&A
Position: See Q&A
Reasons: See Q&A
CLHIA ROUNDTABLE - MAY 2009
Question #10
Electronic Filing
In order to improve efficiencies at the CRA, the 2009 Federal Budget proposes the mandatory electronic filing of income tax returns by prescribed corporations. See Annex 5, "Canada Revenue Agency Strategic Review: Electronic Filing" and proposed subsection 150.1(2.1). It is indicated that "The CRA may provide exceptions for corporations of a type in respect of which the CRA would not generate efficiencies through electronic filing. These could include, for example, non-resident corporations, insurance corporations, and corporations filing in a functional currency." Specifically, for insurance corporations, the exception should be made because Schedule 150 is not available electronically.
Question
Can the CRA please confirm that insurance corporations will not be prescribed corporations for the purposes of proposed subsection 150.1(2.1)?
CRA Response
Subsection 150.1(2.1) received royal assent on March 12, 2009 making electronic filing mandatory for prescribed corporations for taxation years that end after 2009. The Director General, Business Returns Directorate is delegated the authority to determine which corporations are prescribed for the purposes of subsection 150.1(2.1) and this determination has been made. CRA can confirm that insurance corporations will not be prescribed corporations and will therefore be exempt from mandatory electronic filing.
Please refer to CRA's website: www.cra-arc.gc.ca What's new for Corporation Internet Filing / Mandatory Internet Filing of T2 Returns
2009-031673
Alison Campbell
May 1, 2009