CRA Administrative Updates

Electronic Mail

CRA is continually changing the method of communication for individuals. Individuals are now urged to register for a MyAccount and update their notification preferences. Taxpayers should regularly check their online correspondence in their MyAccount to ensure that they do not miss out on important information such as notices of assessments/reassessments, instalment reminders, post assessment letters, or statement of accounts.

CRA has defaulted MyBusiness Accounts to electronic mail. Only those who had a business number prior to May 2025 and, do not have a registered MyBusiness Account or do not have an Authorized Representative who has access to their CRA account will continue to receive physical mail. You can request to continue to receive paper mail by filling out an RC681 form, which must be resubmitted every two years. Should you choose to continue to receive physical mail, it will be imperative to keep your mailing address up to date as CRA will automatically revert a business to online mail if undeliverable mail is returned to them. If not done so already, it’s recommended that business owners register for a MyBusiness Account and update their notification preferences. Ensure to regularly check your online correspondence in your MyBusiness Account to ensure you do not miss out on important information such as notices of assessments/reassessments, instalment reminders, audits, or statement of accounts.

Missing CRA correspondence for both businesses and individuals could lead to significant consequences, such as interest, penalties, or large, unexpected tax assessments. There are strict time frames the CRA provides for you to be able to provide information or object to an assessment – if these time frames lapse then you may be unable to object to the assessment. Click here for more information on CRA’s changes.

Please reach out to our administrative team for assistance with filing the RC681, registering for a MyAccount/MyBusiness Account, or updating your notification preferences.

Please note that representatives such as Ward & Uptigrove do not have the ability to update or maintain their client’s email information or mail notification preferences with CRA and therefore it remains the responsibility of the individual/business to ensure they have their accounts set-up accordingly to continue to receive CRA’s communications.

CRA will never send unsolicited emails or text messages asking you to click a link, provide personal information, or confirm banking details. If you receive a message that seems suspicious, please do not open any links and contact CRA directly.

Authorization

To authorize a representative on your personal tax account, you will now need to either:

Authorize a representative through MyAccount
Provide a representative with a Notice of Assessment from a previous year’s tax return and sign a certification page which is submitted to the CRA to be processed. CRA may still contact you to verify the authorization request under this method.

Ward & Uptigrove uses this authorization to download information from CRA for your personal tax returns to ensure accuracy of information as well as to correspond with CRA on your behalf for various reasons.

A reminder that CRA has also changed the way that authorization can be given for business numbers. Now a business registrant can only provide authorization through their MyBusiness Account. Please note that when you register for a MyBusiness Account for the purpose of authorizing a Representative, CRA will automatically update the default method of communication to electronic mail as noted above.

Those with MyAccount or MyBusiness Account can review Authorized Representatives on file and revoke access at any time. If you notice that Ward & Uptigrove is not authorized on your account and you would like them to be, reach out to our administrative team for next steps.

Personal Tax Instalments

CRA requires individuals to pay instalment payments for their personal taxes when they have a balance owing of $3,000 or more in a single year.

Generally, individual’s instalment due dates are March 15^th, June 15^th, September 15^th and December 15^th.

CRA will provide instalment reminders for personal tax instalment requirements, which may only be sent via email if you are signed up for CRA’s online mail. If you have a CRA MyAccount, please ensure you review your email address and notification preferences to ensure you do not miss these important reminders. Ward & Uptigrove will provide an instalment schedule with your personal tax package, please be sure to carefully review these letters for key due dates.

Instalment interest is applied to personal tax installments when:

You were required to pay installments in the applicable year;
You received an installment reminder and;
You did not make the required minimum payment or made the payment late.

CRA charges interest at the prescribed interest rate which is compounded daily.

Additionally, instalment penalties are applied when:

You did not make the required minimum payment, or the payment was late and;
Instalment interest assessed is greater than $1,000.

If you have missed a payment or made a late payment during the year, you can reverse the accrued instalment interest by earning instalment credit interest. This interest is not refundable and can only be used against instalment interest accrued in the same year. Earn instalment credit interest by:

Overpaying the next instalment payment or;
Pay your next installment early.

In certain circumstances you may not be required to pay the instalments as requested by CRA. These circumstances include when you have a major change in your income from year to year or you had a one-time income event such as a business or a farm sale/transfer. Ensure you speak with your accountant to determine the appropriate amount of instalments to pay in these cases.

For more information, visit CRA’s website.

OAS Auto Enrollment

Individuals who meet the eligibility requirements may be automatically enrolled in Old Age Security pension (OAS). Service Canada will notify eligible individuals by mail after their 64^th birthday, individuals who have not received a letter one month after their 64^th birthday may need to apply.

Individuals have the opportunity to delay the start date of OAS to the age of 70. Each month delayed increases monthly payments by 0.6%, up to a total of 36% at age 70. Guaranteed Income Supplement (GIS) payments do not increase if OAS is delayed.

To delay you OAS start date, individuals can either:

Complete request on My Service Canada Account (MSCA), or
Mail completed ISP-3550 to Service Canada.

If an individual misses their start date, but has not delayed it, Service Canada will retroactively pay up to 11 months (from the date of the application). If you have delayed your OAS pension, you are not eligible for retroactive payment. If you have already started receiving OAS, you can only cancel or request a delay within 6 months of receipt of the first payment.

By delaying OAS, individuals cannot receive GIS during the delayed period and spouses/common law partners cannot apply for the Allowance.

There are many reasons why an individual may choose to delay their OAS pension, some include:

Clawback – OAS pension payments are subject to clawback once income exceeds $93,454 and is fully clawed back when income reaches $152,062 (2026/27 benefit year, threshold change annually). If an individual consistently earns higher income each year or if they have a significant transaction planned between the ages of 65-70 (business or farm transfer/sale), it may make sense to delay their pension income to avoid clawback.
RRSP Drawdown – if an individuals expected RIF draw starting at age 71 is causing annual income to be above the OAS clawback threshold, they may delay their OAS to 70 and begin early draws of their RRSP to reduce the annual required RIF draw to below the OAS threshold.

How can individuals manage their OAS clawback:

Utilize TFSA – income generated within a Tax-Free Savings Account and subsequent withdrawals do not trigger OAS clawback;
Pension splitting – eligible pension income can be split between spouses on their personal tax return, which can reduce income to below the OAS clawback threshold.

Retirement can come with a lot of changes, be sure to speak with your accountant and financial advisor to see how those changes may impact your OAS. For more information, visit CRA’s website.

Not-for-Profit Organization Changes

Draft legislation by the Department of Finance released earlier this year will require non-profit organizations (NPO’s), who may not have been previously required, to file a T1044. This change will apply to fiscal years that begin on or after January 1, 2027.

Currently a NPO is required to file a T1044 with their corporate tax return if:

Received taxable dividends, interest, rental income, and royalties over $10,000;
Owned assets with a value that exceeds $200,000 at the end of the previous fiscal period; or
Was required to file a T1044 in a previous fiscal year.

Under the proposed legislation, a requirement is being added:

Total amounts received during the fiscal year, including capital receipts, exceeds $100,000.

In addition, any NPO that did not meet the above criteria for filing a T1044 will be required to file a new short-form return, except:

Those organizations whose total receipts for the fiscal year were under $10,000;
Groups are not considered an “organization”; or
Organizations that were required to file a long form T1044.

If an NPO is considered an organization will be a question of fact, consider if there are bylaws or a constitution, if there is an organizational structure or hierarchy, or if there are defined governance roles. Loosely organized recreational activities would generally not be considered an organization.

In order to prepare for these changes, NPO’s should:

Prepare a brief description of the NPO’s activities, including where they operate from;
Calculate the total amount of annual receipts, assets, and liabilities;
Gather names of directors, officers, trustees, or similar officials.

T1044’s are due 6 months after an organization’s fiscal yearend, they cannot be electronically transmitted and must be mailed in to CRA. Currently there is a penalty of $25 per day to a max of $2,500 for each late filed T1044.

These changes do no impact registered charities as they have different filing requirements.

As this is proposed legislation currently, there is no new T1044 been made available yet.