Efile T3 Return with Balance Owing

It was my understanding that a T3 return couldn’t be efiled if it had a balance owing. However, TaxCycle seems to think a T3 I have prepared with a balance owing is eligible. The cover letter is indicating as such and there’s no indication in the T3RET EFILE Worksheet that having a balance owing impacts the eligibility.

This CRA posting says that only T3s with zero taxable income and zero tax payable should be eligible.

Am I missing something?

Edit to add: I also noticed that TaxCycle was claiming the T3RET was eligible for efile even if reserves were being reported (Schedule 2). Again, it was my understanding that you need to paper-file when claiming reserves.

I think you may be looking at old information. This page shows the T3 efile exclusions. It doesn’t include T3 returns with a balance owing (at least for 2021 and subsequent year T3’s). Like T1’s, you have to have the T183TRUST form completed and signed.

https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/efile-electronic-filers/t3-efile.html

It’s unfortunate that CRA doesn’t update all their information correctly.

Thanks Kevin,

Yea I was just basing my understanding off of last year’s T3 season. I was with a Big 4 firm and they used TaxPrep. I had to do a few T3s where QSBC shares were disposed of and also T3s where there was a balance owing. In both cases, TaxPrep kicked up an efile diagnostic.

Thanks for the link. I’ll let my client know we don’t need to paper file this year. It’ll be a pleasant surprise.

Regards,

Jeremy