Comments on: To NETFILE or Not to NETFILE

By: Fawn

Fawn — Fri, 09 Mar 2007 17:44:42 +0000

Now if only CRA could get the Netfiling service working again…! I’m holding out for a couple of weeks to see if they can get the system back up. I’ve Netfiled for the past 4 or 5 years and I LOVE how fast that refund money gets deposited into our account.

By: Mike

Mike — Fri, 09 Mar 2007 03:36:48 +0000

Dave, you’re not an ass!

It took me a while to get into the netfilin’ thing but once I did it – never looked back.

By: Dave

Dave — Thu, 08 Mar 2007 22:23:25 +0000

Alright I’ll give up on point a) completely, now that everyone else has filled me in on the facts.

Thanks everyone. I think I might NETFILE this year. Glad I made the title of the post “to NETFILE or not to NETFILE” instead of “why I don’t NETFILE” because that would have made me look like an ass…

By: Canadian Capitalist

Canadian Capitalist — Thu, 08 Mar 2007 22:16:58 +0000

The CRA looks for certain patterns to flag a return for audit and Netfiling isn’t one of them. Netfiling reduces mistakes (don’t forget that the government pays someone to input data from your paper return into their database and they could well make a mistake), you get your refund faster and reduces costs (I considered developing tax software at one point and CRA was so frustrated that most people used software to generate returns, then printed it out and sent it in and CRA paid people to enter the data into software again that they considered developing their own software). Also, remember that the CRA also gets tax data from your employer, banks, brokers etc. and double checks all that information before issuing you a refund.

By: Dave

Dave — Tue, 06 Mar 2007 06:19:25 +0000

George, I really like your last point. I’ll have to think about it. I may NETFILE after all. I usually have this same line of thinking with other things as well. ie. I don’t go to the doctor unless I have to so that there is more money (in theory) for the government to spend (or waste, depending on your outlook).

By: George

George — Tue, 06 Mar 2007 04:51:35 +0000

I really doubt there’s much of an extra chance of an audit if you netfile. Sure, you don’t have to send in your receipts, but I really doubt that anybody looks at your receipts if you send in a paper return, unless your math is wrong or your return is otherwise flagged for audit.

Even if they do audit you, you shouldn’t have anything to worry about if you keep your records in reasonable order. I keep everything pertaining to each year’s tax return in a 9×12 envelope. I’ve done this for a decade now, and I always have all my tax paperwork readily accessible.

FWIW, I’ve used Netfile ever since it first became an option (at least 5 years ago, I believe), and I haven’t been audited yet. Netfile is actually a great way for the government to save money, since dealing with electronically filed tax returns is much less time-consuming and labour-intensive than working with paper returns. If the government saves money, there is more money (in theory) for tax cuts or improved services.

By: Mike

Mike — Tue, 06 Mar 2007 02:27:39 +0000

I love netfiling.

It never occurred to me that netfiling would increase the chances of an audit. Regardless, since I have a fairly simple return and have no problem storing the receipts – I have no intention of going back to the pen & paper…

By: Dave

Dave — Mon, 05 Mar 2007 20:37:49 +0000

You’re right about the software reducing the number of mistakes. Now that I think about it, the mistakes I was referring to in my post were mistakes I made when doing 100% paper filing (ie. no software used at all).

By: Canadian Dream

Canadian Dream — Mon, 05 Mar 2007 19:42:56 +0000

Dave,

I’ve used NETFILE for years now and I have never been audited (knock on wood). I find using the computer programs for taxes forces me to review all my numbers so I don’t have any mistakes in the final return (or at least very minor ones).

Yet you do have a point about having to keep all your records. That is a bit of pain.