Efile is part of the electronic tax filing system set up by the Canada Revenue Agency (CRA). Through Efile, authorized service providers (such as tax professionals) can send income tax information through the Internet directly to the CRA.
Efile is available for both individual and corporate income tax returns. Using Efile makes processing tax returns and the tax refund process faster.
Netfile is the do-it-yourself electronic tax filing option; it works the same way as Efile, but is designed to be used by individuals.
While Netfile is a fast and secure way to transmit your income tax return to the Canada Revenue Agency, not everyone can use it. First, you can only use Netfile to file T1 income tax returns (not corporate returns). Second, you can only use Netfile if you have prepared your income tax return with Netfile certified tax preparation software or web applications. (See Top Canadian Tax Software for some of the tax preparation software you can use.)
Last, you cannot use Netfile if you are in bankruptcy, have income from a business with a permanent establishment outside your province or territory of residence, are a non-resident of Canada, or are filing an amended tax return.
The Canada Revenue Agency also provides Telefile services, which allow you to file tax returns using a touch-tone phone. T4 slip information and GST/HST returns can also be filed electronically using Netfile. For more on electronic tax filing services for businesses, see the Canada Revenue Agency's E-services for businesses.
