September 2006
CRA & 2D Bar Coding
In October 2006, the Canada Revenue Agency (CRA) will introduce two-dimensional (2D) bar codes for T2 returns, which will be used to process computer-generated paper returns filed by corporations. The 2D bar code technology is presently being used for T1 Individual returns and has proven to be highly effective.
2D bar codes
Recent advances in bar code technology have enabled greater amounts of data storage and retrieval, and it is now possible to capture a corporation's income tax return with 2D bar codes.
Using 2D bar codes at the CRA
The primary focus of the 2D bar code technology is paper corporation returns that are mailed to the CRA, rather than sent electronically. With the 2D bar code technology, when the tax return is printed for submission to the CRA, the certified tax preparation software will automatically generate 2D bar codes and print them on the first page(s) of the T2 Return and Schedule Information (T2 RSI). These bar codes will contain the identification and financial data necessary to assess the return.
When the CRA receives the return, an operator will scan the 2D bar codes using a bar code scanner. The data will then be validated and processed by the same system currently used to process returns. In the rare case where the scanning process is unsuccessful, the return will be sent for manual data entry. Therefore, taxpayers are still required to file all of the pages of the T2 RSI.
Improved efficiencies
With the use of 2D bar codes, CRA agents will no longer need to key the information manually. Instead, they will scan the 2D bar code printed on the T2 RSI. T2 2D bar coding will ensure the accurate transfer of information into the CRA mainframe system. This improved accuracy of data will increase the number of clean assessed returns.
For more information on T2 2D bar codes, please refer to our Questions and Answers.
Corporation Internet Filing
Corporation Internet Filing allows corporations that meet the eligibility criteria to file their 2002 or subsequent year corporation income tax returns directly to the CRA through the Internet using a Web Access Code or EFILE On-Line number and password.
For more information on Corporation Internet Filing please visit our Web site at www.cra.gc.ca/corporation-internet.
This document is also available for download in .pdf format.
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