Taxation year 2025:New CRA automatic tax filing service

You might be eligible for the new free of charge CRA automatic filing. 

 The new Canada Revenue Agency (CRA) pre-filled tax returns service, announced in Budget 2025, is a major new initiative aimed at simplifying the tax filing process for low-income individuals with simple tax situations. This service is distinct from the existing “Auto-fill my return” service that requires the use of tax software. 

Key Objectives:

• Goal: The primary objective is to ensure that eligible individuals do not miss on government benefits (such as the GST/HST credit, the Canada Child Benefit, and the Canada Disability Benefit) to which they are entitled but may not be accessing because they don’t file a tax return.
• Process: The CRA will use the information it already has (like T4 slips and other third-party data, provided that the issuers have uploaded the slips to CRA computers) to prepare a draft tax return. Eligible individuals can review these pre-filled forms in their CRA MY ACCOUNT on line and make any necessary changes before final submission.
• “Deemed Acceptance”: The proposal includes legislative changes to allow the CRA to automatically file these returns (deemed acceptance) for certain eligible individuals who do not owe tax and do not file themselves after a certain period, ensuring they receive their benefits without any action required on their part.
• Eligibility: The program targets individuals with straightforward tax situations, likely those with only employment or social assistance income, and little to no tax liability.

If not already already registered , Click on the link bellow and you will directed to the CRA site to register for your

“My CRA Account” 

How pre-filled tax returns and automatic filing work

Using pre-filled tax filing, the CRA initiates the first step of filing your return for people with “simple” returns such as those with a simple T4 or receiving pension, social assistance, etc. According to the 2025 federal budget proposal, eligible individuals may change their pre-filled tax forms, or file a brand-new return, ignoring what has already been pre-filled. Therefore, individual will have the opportunity to change or reject their pre-filled tax returns if they want to. They may also want to hire a tax filing service to make changes for them.

Budget 2025 also proposes legislative changes that would allow the CRA to submit a tax return on behalf of certain eligible individuals with lower incomes in simple situations who do not owe tax and do not file themselves. This is called “deemed acceptance.” After a certain period, the pre-filled tax forms will be submitted, with or without changes from the individual. Deemed acceptance ensures that eligible people can receive the benefits to which they are entitled.

Benefits of filing your taxes on time

Canadians must file a tax return to access many government benefits. Automatic tax filing helps more people access the financial supports they are entitled to.

The benefits

• Canada Child benefit (CCB), if you have young children.
• Canada Workers Benefit
• Disability benefits
• GST/HST credits
• Ontario Trillium benefits for renters, property tax payers
• C. affordable child care benefit
• Ontario Trillium drug program
• Seniors dental and optical assistance

Crypto Currency:

A virtual currency or crypto currency is an electronic digital fund which might be used to pay for goods or services or used as a form of an investment. There are several types digital currencies such as digital coins and non-fungible tokens or NFTs.

Income, expenses, gains and losses from these sources must be reported on your tax return, similar to any other transactions.

Generally speaking, virtual or digital currencies are digital denominations used as value that function as a medium for transactions. Virtual currencies have an equivalent value of another real currency, such as the Canadian, U.S. Dollar or Euro, etc. They might be accepted as a medium of exchange or payment, but, currently, they do not have a legal tender status in any jurisdiction.

Virtual currencies are not currently regulated by a central bank which is why their value tend to fluctuate so considerably. They are bought and sold in a blockchain network to ensure security.

Taxpayers’ investment in crypto is the same as buying and selling stocks or property. Virtual currencies often have tax consequences that may result in a tax liability when traded. Like stocks or other investments, these transactions are often assessed tax only when traded. If you sell crypto in 2021 at a capital gain or loss, you will want to report it on your 2021 Tax Return. There may be tax deductions if you lose money on this while a gain would be taxed as capital gain income. Fairtax Business Services is ready to help you report your virtual currency tax obligations on your tax return.

If a virtual currency is used to pay for goods or services, it is treated as its equivalent Canadian Dollar at fair market value for tax purposes. The fair market value of a virtual currency in Canadian Dollar is based on the date of transaction.

Tax related calculations:

If a virtual currency exceeds the taxpayer’s adjusted basis of the virtual currency, the taxpayer has to report a taxable gain. This is also the case if there is a gain or loss in exchange of virtual currency for other property, like real estate.

If a taxpayer mines virtual currency, the fair market value is set as of the date of receipt of gross income.

If you make charitable donations with virtual currency, the donation is treated as a non-cash contribution equal to the fair market value of the currency at the time of donation.

• When you prepare your tax return, you will be asked if you bought, sold, or received any form of virtual currency during the tax year. Be sure to answer this question accurately and honestly.

NFT (non fungible token) – What is it?

NFT stands for non-fungible token. An NFT is a digital certification that grants a person the ownership rights of a blockchain value – most commonly, Ethereum (ETH) – which has its own unique value. In other words, an NFT is a digital piece of property one can buy and own which cannot be duplicated. Trading and investing in NFTs becomes complicated due to this. Unlike virtual currencies, where trading one Bitcoin for another Bitcoin is simple as the value fluctuates and each coin is the same value, a specific NFT cannot be traded for another as they are one of a kind. NFTs are generally purchased via Ethereum or other crypto through a third-party platform, but some may offer the option to buy with a credit or debit card. 

Examples of NFTs include the selling of a digital piece of original art or history, digital trading cards, or an online essay. The purchaser receives the authenticated digital product plus all the rights to the property. example: anyone can look up a picture of a famous painting and print it out, but it will not be authentic. An NFT is a digital original that can not be duplicated.

Creating, Selling an NFT

If you create and sell your own NFT – for example, as an artist, you draw your own original avatar and sell it online – then the income from this exchange would need to be reported on your income tax return as regular business income. This is not a capital gain as you did not invest in the NFT, you instead created and sold a piece of property.

Investing, Trading NFTs

You can purchase (invest) in NFT using the Ethereum. This is same as buying stock and the tax treatment of the NFT is like owning a stock.

I. Identity Theft:

Very important to safeguard your critical personal information, especially when dealing with on line activities such as filing your income tax or banking, etc…