Definition: EFILE is an electronic Canadian income tax service used by those who prepare income tax returns for others (tax professionals and accountants) to file returns directly with the Canada Revenue Agency (CRA) over the Internet.
Individuals can prepare their own income tax return and take it to an EFILE service provider who will file it electronically, for a fee. The EFILE service provider is required to verify your identity, and ensure you have all the documents required to support information on the return.
The advantages of EFILE are
- it is fast - acknowledgements are usually received within a day, and most returns, and refunds, are processed within two weeks.
- the CRA performs computer checks and balances which result in greater accuracy. If there is a problem with the return, the EFILE service provider is notified and given suggestions on how to fix the problem.
- unlike NETFILE, EFILE can be used for both personal and corporate income tax returns.
- individuals do not need to get new or upgraded software every year as they do for NETFILE.
See also: 6 Ways to File Your Canadian Income Taxes
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