Restrictions

There are some types of tax returns that cannot be submitted to the CRA electronically.

You cannot use NETFILE to send:

• an amended tax return;
• a tax return for any year except the 2005 tax year; or
• a tax return for another person (for example, if a client prepared a spousal/family return, the client must create a separate ".tax" file and each client must file his or her own return with his or her own access code).

You cannot use NETFILE to file your tax return if:

• you are in bankruptcy;
• you are a non-resident of Canada; or
• you have income from a business with a permanent establishment outside your province or territory of residence (you have to complete Form T2203, Provincial and Territorial Taxes for 2005 - Multiple Jurisdictions).

You cannot use NETFILE to change personal information such as your:

• name
• address (use My Account service or call 1-800-714-7257 before using NETFILE)
• direct deposit (this includes new requests).

For more information on changing your name, date of birth, or direct deposit information, contact Individual income tax enquiries at 1-800-959-8281.

Are there any other restrictions?

The following is a list of specific situations that prevent you from filing a tax return through the NETFILE service:

• Your tax return was discounted by a third party.
• You're considered a deemed resident (not subject to provincial or territorial tax).
• You're filing a tax return for an individual who died in 2005 or 2006.
• Your social insurance number begins with a "0" (zero).
• You went bankrupt in 2005 or 2006 or are in bankruptcy according to our records.
• You are an immigrant, emigrant, or non-resident of Canada for the 2005 tax year.
• Your address is outside Canada.
• If this is your first year filing an income tax return with CRA, you must mail a paper return or seek the services of an authorized EFILE service provider.
• You're electing to defer tax on a distribution of spin-off shares by foreign corporations.
• You're claiming less than the maximum federal foreign tax credit.
• You're reporting any one of the following:
  • Canadian-source income from Lloyds of London;
  • employment income earned from an international organization;
  • lump-sum pension income accrued to December 31, 1971;
  • more than six sets of financial statements;
  • an Ontario, Saskatchewan, British Columbia, or Yukon Qualifying Environmental Trust Tax Credit (may also be referred to as Mining Reclamation Trust Tax Credit); or
  • a statement of qualifying retroactive lump-sum payment (Form T1198).
• You're claiming any one of the following:
  • foreign taxes paid to more than one country, or a business foreign tax credit(s);
  • a deduction for scientific research and experimental development expenses;
  • an Overseas Employment Tax Credit (Form T626);
  • an Alberta Stock Savings Plan Tax Credit (Form T89);
  • a Saskatchewan Royalty Tax Rebate (Form T82);
  • a British Columbia Royalty and Deemed Income Rebate (Form T81);
  • a Manitoba Investment Tax Credit (Form T86);
  • a Newfoundland and Labrador Research and Development Tax Credit (Form T1129);
  • a disability amount for yourself, for a dependant other than your spouse or common-law partner, for a transfer from your spouse or common-law partner and this is a first-time claim or a new Form T2201 is required;
  • a claim at line 318 involves more than ten dependants;
  • capital gains on gifts of capital property (Form T1170); or
  • a Nova Scotia Research and Development Tax Credit Recapture.
• You're reporting farming income with CAIS program application which involves:
  • farming income from a partnership reported on a T5013 slip or the partnership includes a corporate partner;
  • a Canadian Indian reporting self-employed income which is “tax exempt income”.
  • More than 8 occurrences for either crop or livestock inventory information (SFD type 9 only) - Pages 7 to 9 of Form T1273.

If any of the above situations apply to you, you cannot use the NETFILE service to file your tax return. If you have to file an amended or previous-year tax return, or any other tax return that doesn't qualify for NETFILE, you can mail it to your tax centre listed in our directory.