- NETFILE is the CRA’s system for submitting an income tax return electronically, using certified tax preparation software.
- NETFILE eligibility has some exclusions built in — certain tax years, certain types of returns (such as some bankruptcy returns or returns for taxpayers who emigrated during the year),…
Almost every Ontario taxpayer files electronically now, and for good reason — it’s faster and generally simpler. But paper filing hasn’t disappeared, and for a specific set of situations it’s still the right, or only, option. Understanding what each method actually involves helps you avoid picking the harder path by default.
The Two Ways to File
NETFILE is the CRA’s system for submitting an income tax return electronically, using certified tax preparation software. You (or a preparer, using the related EFILE system) enter your information into software that formats and transmits the return directly to the CRA.
Paper filing means completing the return on printed forms and mailing it to the appropriate CRA tax centre. It is the older method and remains available to any taxpayer, though the CRA has increasingly steered filers toward electronic options.
Comparing the Two Methods
| Factor | NETFILE (Electronic) | Paper Filing |
|---|---|---|
| Speed of processing | Generally faster | Generally slower |
| Confirmation of receipt | Immediate electronic confirmation | No immediate confirmation |
| Error checking | Software flags many errors before submission | No automated error checking |
| Accessibility | Requires certified software and internet access | No software or internet required |
| Availability | Not available for every tax situation (see below) | Available to essentially any filer |
| Record-keeping | Digital copy generated automatically | You must keep your own paper copy |
When NETFILE Isn’t Available to You
NETFILE eligibility has some exclusions built in — certain tax years, certain types of returns (such as some bankruptcy returns or returns for taxpayers who emigrated during the year), and some unusual filing situations fall outside what the system currently accepts. Certified software will generally tell you if your specific return can’t be submitted electronically. If you fall into an excluded category, paper filing is not just an alternative — it may be your only option for that particular return.
Who Should Still Consider Paper Filing
- Taxpayers filing a return type currently excluded from NETFILE.
- People without reliable internet access or comfort using tax software.
- Filers who prefer a physical paper trail for their own records, independent of any digital confirmation.
- Someone filing on behalf of a deceased person in certain circumstances, where the return type may fall outside electronic filing.
Who Benefits Most From NETFILE
- Anyone with a straightforward return (employment income, standard deductions) who wants speed and an instant transmission confirmation.
- Self-employed individuals and others who want built-in error-checking before submission, reducing the chance of an easily avoidable mistake.
- Filers who want a faster path to any refund they’re owed, since electronic returns are generally processed more quickly than paper ones.
Common Mistakes With Either Method
- NETFILE: Submitting before double-checking every slip is entered — software catches formatting errors, but not a slip you simply forgot to include.
- NETFILE: Assuming submission confirmation means the return has been fully assessed — confirmation only means the CRA received it.
- Paper: Forgetting to sign and date the return, which can delay processing.
- Paper: Mailing to the wrong tax centre, or not keeping a copy before sending the original.
- Both methods: Missing supporting documents that you may later need to produce if the CRA asks questions — keep receipts and slips regardless of how you filed.
Frequently asked questions
Is NETFILE the same as EFILE?
No. NETFILE is for individuals filing their own return using certified software; EFILE is the system tax preparers use to file on behalf of clients. Both transmit returns electronically to the CRA, but they serve different filers.
Can I switch from paper to electronic filing in a future year?
Yes — there’s no restriction that locks you into one method. Most people who start with paper filing can move to NETFILE in a later year as long as their return type is eligible.
Does filing by paper make me more likely to be audited?
No. The filing method itself is not a factor the CRA uses to select returns for audit or review; those decisions are based on other risk factors entirely.
What if my certified software says my return is ineligible for NETFILE?
Follow the software’s guidance and prepare to file that year’s return on paper instead. This happens for specific return types and doesn’t reflect anything wrong with your information.
Does choosing paper filing give me more time before my return is due?
No. Your filing deadline for the year is the same regardless of which method you choose — paper filing simply takes longer to reach and be processed by the CRA once it’s mailed. If you’re filing close to a deadline, that extra transit and processing time is worth factoring in, and electronic filing removes that variable entirely.
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