CRA December Shutdown Alert

CRA plans a system shutdown early this year in December 2024 and could have far reaching repercussions for professional tax advisors and their business owner clients. For example, businesses to electronically file information slips prior to December 2024, and this now includes the requirement that businesses filing 6 or more information returns must do so electronically to avoid filing penalties.

  Here are three key changes to know based on a government news release issued on June 28:

1. The T619 Electronical Transmittal Record is changing:  This  will affect all electronically filed information returns.  Be sure your software, whether commercial or customized, can support these changes.

2. Only One Submission Per Information Return Type – Electronic submissions will only be accepted, as a single submission, for one information return type at a time.  For example, you will no longer be able to submit a T4 and T4A in the same file.  With at least 28 different types of return types that fall under this definition, that will require several different file submissions.

3. The December 2024 system shutdown – According to the  CRA, system maintenance will occur earlier than what you may have been used to.  Last year CRA’s  T1 EFILE, ReFILE and T1135 web services stopped accepting transmissions of initial and amended (T1) personal income tax and benefit returns and T1135 forms for T1 on Friday, January 26, 2024 and reopened on Monday, February 19, 2024.  The system shut down for T3 EFILE and T1135 filing on January 19.  Further information is forthcoming, however, all indications from the CRA are that all information returns will need to be prepared prior to this shutdown:  “The yearly systems shutdown will take effect earlier than usual in December 2024. We are sending this now to prepare you to file all your information returns prior to the shutdown.”

4. Finally, don’t forget!  As of January 2024, any business filing 6 or more information returns (each slip counts as 1), must file electronically to avoid penalties:

Bottom Line:  Business owners should make sure their accounting departments are set up for this and talk to their tax professional now to get ready for this.

Professionals:  For more information attend the CE Summit on September 18 for a discussion on CRA audit defence strategies.   Here’s the link: