What's new for 2026
The Canada Revenue Agency has introduced several changes for the 2026 tax year. Here are the key updates that affect how you file and maintain records:
New T619 Electronic Transmittal
A new version of the T619 Electronic Transmittal record is now mandatory for information return submissions. It requires a valid email address for CRA follow-up.
Single-type submissions only
Each electronic submission is now restricted to a single type of return. You can no longer bundle different return types in one submission.
Online validation reports
Submissions now generate online validation reports that identify issues before final submission, allowing you to correct errors upfront.
Mandatory e-filing requirements
Electronic filing is no longer optional for many businesses. Here's who must file electronically:
T2 Corporate Returns
Starting in 2024, all corporations with gross revenue exceeding $250,000 must file their T2 returns electronically through certified EFILE providers or via CRA's My Business Account.
Information Returns (T4, T5, etc.)
If your business files six or more information returns of the same type, you must file electronically. This includes T4s, T5s, T4As, and other information slips.
Penalty for paper filing
Filing on paper when electronic filing is required can result in penalties. The CRA is increasingly strict about enforcing this requirement.
GST/HST Returns
Businesses with annual taxable supplies over $1.5 million must file GST/HST returns electronically. Even below this threshold, electronic filing is strongly encouraged and often faster.
Tax Preparer Requirements
Tax preparers who file more than 10 returns of the same type per year must file electronically. This applies to both individual (T1) and corporate (T2) returns.
Digital record-keeping rules
The CRA has specific requirements for electronic records under the Income Tax Act (Subsection 230). Here's what you need to know:
Retention period
All business records must be kept for a minimum of 6 years from the end of the tax year to which they relate. This includes invoices, receipts, bank statements, and any supporting documentation.
Electronic format requirements
If you keep records electronically, they must:
- Remain accessible and readable by CRA software
- Be available for inspection when requested
- Be decryptable if stored encrypted
- Survive any changes to your operating or business systems
- Be restorable from backups to a useable state
"Computer crashed" is not an excuse
The CRA explicitly states that digital systems must include backup solutions. If your records are lost due to a system failure, you're still responsible for producing them.
Location requirements
Records must be kept at your place of business or residence in Canada, unless you have written CRA permission to store them elsewhere. Records kept outside Canada and accessed electronically from Canada are not considered to be kept in Canada.
Cloud storage note
Using cloud storage (Google Drive, Dropbox, etc.) is acceptable as long as the data is physically stored on servers located in Canada, or you have CRA permission for offshore storage.
Compliance checklist
Use this checklist to ensure your firm and clients are compliant:
E-Filing Compliance
Digital Record-Keeping
Client Communication
Penalties for non-compliance
The CRA can impose penalties for failing to meet electronic filing and record-keeping requirements:
| Violation | Penalty |
|---|---|
| Filing T2 on paper when e-filing required | $500 per return |
| Filing information returns (T4, T5) on paper | $25 per slip (max $2,500) |
| Failure to keep adequate records | Up to $2,500 or 6 months imprisonment |
| Destroying records before retention period | Up to $1,000 fine |
Stay compliant with automation
Resolved by TideSpark maintains complete audit trails, stores records in Canada, and exports directly to CRA-compatible formats. Book a demo to see how it simplifies compliance.