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File Tax Online – NetFile vs EFile?

20 March, 2008 (09:16) | Corporate Tax, Personal Tax, Small Business Tax | By: Cecilia Leung

There are two ways you can file online. If you are filing your own tax and have been browsing the CRA website, you should know that there are two options: Netfile, and Efile.

So what is the different? Which one should you use?

Netfile is intented to use for personal or family use only. Each Netfile software or web application only allow each personal to file 20 tax returns. Tax preparers are not recommended to use Netfile, but to use Efile instead. This is because tax preparers who are allow to use Efile required to go thru CRA screening process before they are allowed to use Efile to serve the public.

If you found your way to this article, I am assuming you are planning to file you own tax, or even file taxes for your family and friend. Then Netfile is for you.

A lot of small tax preparers use Netfile to help their clients to fill in their tax form due to reason such as waiting for government to approve your efile application. Also good Efile software tends to be very expensive and sometime it is too expensive for a small company who are just starting up. However if you are a small tax preparer planning to file for your client, you are just helping your client to fill out the form in this case, it is required that your client is the one who actually press the submit button, that your client is the one who file his / her tax, not you.

Efile is intented to use for professional tax preparer only. If you are planning to file tax for the public this should be the option to use. You can find a list of efile software here http://www.efile.cra.gc.ca/eol-software2008-e.html. But first you need to register at https://apps.cra-arc.gc.ca/ebci/efes/emod/sec/EmodRegisterEfileRender-e.

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