Feb 10

Take Advantage of NetFile
Sun Review February 24, 2001

This year, almost everyone filing a tax return in Canada for the 2000 taxation year - an estimated 22 million people - should be eligible to use the government's new web-based NetFile system to electronically file their 2000 tax returns. The main attraction of NetFile (www.netfile.gc.ca) is a dramatic decrease in the average six-week time it takes to receive your refund cheque. And if you are set up for direct deposit, that money could be in your account in under two weeks. Web-filing saves the government about $2 per return, and eliminates the need for Revenue agency staff to punch in the numbers from paper tax returns.

So how do you NetFile? You will need a secure browser, an Internet connection and tax preparation software that has been approved by the Canada Customs and Revenue Agency (CCRA). A list of approved software can be found at www.netfile.gc.ca/software-e.html. Typically there is a nominal cost associated with filing electronically, since most tax programs are not free.

Popular software programs include QuickTax and QuickTaxWeb from the Quicken people (www.quicken.ca), and CoolTax (www.cooltax.com). QuickTaxWeb will set you back $12.95 per return, QuickTax costs $34.95, and CoolTax now charges $10 to prepare up to 20 tax returns. All three programs are available for download online.

Once you've decided on which software package to use, you'll need a Web Access Code (WAC) to use the NetFile system. You can find your WAC on the mailing label included with the 2000 income tax forms sent through the mail. If you have not received a WAC from CCRA, you can request one by calling 1-800-714-7257 between February and June 2001.

Now you can prepare your return using the approved software, and send it over the Internet using your WAC. Just remember that it is always a good idea to consult with your accountant or tax professional before filing your return. The CCRA will send you an acknowledgement, and any balance due to the government can be paid by cheque, electronically through Internet banking or by visiting your bank. However, if you your balance owing is less than $2, you do not have to make a payment at all. And if you don't want to wait for your refund cheque, you can request direct deposit and the CCRA will deposit your refund directly into your account at most financial institutions. Direct deposit can also be requested for GST and Child Tax benefits.

Both Microsoft's Internet Explorer (version 4 or higher) and Netscape Navigator (version 4 only) with 128-bit encryption have been tested and found compatible with Netfile. Cookies must be enabled or you will not be able to file. Netscape users who have upgraded to the latest version (6.0) cannot file electronically; Netscape 6.0 fails a security test provided on the CCRA Web site. You can check your browser's compliancy with the CCRA's browser test at www.netfile.gc.ca/browser-e.html.