CRA Pushes Paper Filers Online

Geoff Currier

Only 7% of all Canadian tax filers use paper. The CRA wants the number to be close to zero. To that end, it is taking steps to steer the holdouts to join the 93% who file electronically. Who are the winners in this push to digitization? It may well be the tax and financial services community.

The Move to Electronic Filing: Those who insist on filing on paper are going to face some difficulties moving forward. To begin with, only those who used paper in the previous year or who specifically request a paper package will receive one.

This means either calling CRA at 1-855-330-3305 if taxpayers lack access to a computer or they can  go online at Forms and Publications-CRA to request the package. Let your clients know that if they choose to call to make the request that CRA will ask for their SIN number.

You might advise clients to wait until after January 20th, 2026 to order the package as prior to that date they’ll most likely receive a 2024 tax return which will lack changes made in 2025. They’ll also need to be aware that it may take up to ten business days for the forms to arrive by mail, assuming there are no more labour disruptions at Canada Post.

Additional Difficulties: To make it even less convenient for paper filers, CRA is sending out incomplete tax returns. Yes, you read that correctly. The schedules will be missing – CRA has deemed them to be of “low usage”. This includes:

• Schedule 2 - Federal Amounts Transferred from your Spouse or Common-Law Partner
• Schedule 3 - Capital Gains or Losses
• Schedule 5 - Amounts for Spouse or Common-Law Partner and Dependants
• Schedule 6 - Canada Workers Benefit
• Schedule 7 - RRSP, PRPP, and SPP Contributions and Transfers, and HBP and LLP Activities
• Schedule 9 - Donations and Gifts
• Schedule 11 - Federal Tuition, Education, and Textbook Amounts and Canada Training Credit
• Schedule 12 - Multigenerational Home Renovation Tax Credit
• Schedule 13 - Employment Insurance Premiums on Self-Employment and Other Eligible Earnings
• Schedule 15 - FHSA Contributions, Transfers and Activities

Federal schedules 2, 11, and 12 have corresponding provincial and territorial versions that have also been removed from the package. The provincial and territorial versions of schedules 2 and 11 apply to all provinces and territories (except for Quebec). The provincial version of schedule 12 only applies to British Columbia, New Brunswick, and Saskatchewan. Make sure to obtain all the schedules you need for your tax situation.

In order to access those forms, taxpayers will need to once again, need to reach out to CRA either online or by the phone number listed earlier, and request the specific forms. 

SimpleFile System: CRA has created the SimpleFile system to automatically file tax return – something it intends to rollout to millions in 2026. It is designed for those in a non-taxable situation. In effect, CRA will do their tax forms for them. There are some logistical issues with this system, however.

A person in this category “may” receive an invitation via the mail or in his/her CRA account. If an invitation does not arrive, that person may not even be aware that this service now exists. Further, in order to receive an invitation, the individual must go online at canada.ca/simplefile. This presupposes that a person with no taxable income has access to a computer and has the necessary skills to use it. 

Those wishing to see if they qualify for this service can check out the eligibility questionnaire starting February 23rd, 2026

The Bottom Line: Since 2020 there has been a 3% increase in people filing electronically but CRA is looking to accelerate the rate at which the remaining 7% abandon paper. 

However, that may not be a great solution for some of the most needy in Canada – those who can’t afford a digital relationship with their tax department for example, or those who lack the skills, time or resources to pay someone who can untangle their messy digital relationship with CRA. 

But there are bigger implications. How can taxpayer comply with certainty with a tax system that features an incomplete tax return package from the CRA or in the alternative, one you can’t see in its entirety because it’s components are scattered online? 

What has not changed is the burden of proof and the requirement to file a T1 tax form on time! 

At the end of the day, the real winners in the digitization process will likely be the tax accounting community. 

Are you ready to serve more, as clients throw up their hands at the digitization process and the ongoing lack of support from the CRA, once the electronically filed records hit the CRA’s internal systems?