Yes, most individual tax-payers, including those operating sole proprietorships or partnerships, and many corporations can file Canadian taxes online.
Individuals can file Canadian taxes online directly with the Canada Revenue Agency (CRA) by using the CRA Netfile service.
You cannot use CRA Netfile if:
- this is your first year of filing an income tax return with the CRA
- you are a non-resident of Canada
- you have income from a business with a permanent establishment outside your province or territory of residence
- you fall into the category of any of the 52 other restrictions listed.
I'm kidding about the number as I didn't count them, but there is a large list of "specific situations" that will disqualify you from using CRA Netfile to file your Canadian taxes online on the Canada Revenue Agency's NETFILE page, many of which pertain to business, so you will want to look through them.
To use CRA Netfile, you will need an access code. If there isn't one printed on your T1 personal income tax return information package, you can get one online.
Note that the Canada Revenue Agency distinguishes between Netfile, which is the system individuals use to file Canadian taxes online and Efile, which only tax professionals can use to electronically file tax returns. So even if this is your first year filing an income tax return with the CRA and you're not able to Netfile, you can still Efile (i.e. have a tax professional prepare and electronically file your Canadian taxes).
Most corporations can also file Canadian taxes online. In fact, filing Canadian taxes online is mandatory for all corporations with annual gross revenue of more than $1 million "except for insurance corporations, non-resident corporations, corporations reporting in functional currency and corporations that are exempt from tax payable under section 149 of the Income Tax Act" (Canada Revenue Agency).
To do so, you will need a Web Access Code or a Canada Revenue Agency user ID and password if you are filing Canadian taxes online through the CRA's My Business Account, or, if you are a tax professional filing T2 tax returns for multiple corporations, an EFILE number and password.
The Canada Revenue Agency's Corporation Internet Filing gives more details on which corporations are eligible to file Canadian taxes online and how to get a Web access code.
