Reporting EFTs under the Shared reporting process
Why will reports be sent to the CRA?
In the 2013 Budget, the Government of Canada announced measures to strengthen the ability of the Canada Revenue Agency (CRA) to combat international aggressive tax avoidance and international tax evasion. One of those measures called for the reporting of international electronic funds transfers (EFTs) of $10,000 or more to the CRA, for use in the administration of the Income Tax Act, Excise Tax Act, and the Excise Act, 2001. Starting on January 1st, 2015, reporting entities that currently have an obligation to report EFTs to FINTRAC under the Proceeds of Crime Money Laundering and Terrorist Financing Act (PCMLTFA) will also be reporting to the CRA when they report EFTs using the Shared Reporting Process.
Shared reporting process
What is the shared reporting process?
The Shared Reporting Process will allow reporting entities to send Electronic Funds Transfers (EFT) reports simultaneously to both FINTRAC and to the CRA.
Why was this process developed?
Because reporting obligations are the same under the PCMLTFA and the ITA, FINTRAC and the CRA worked together to develop this process to reduce the burden on entities that have existing obligations to report Electronic Funds Transfers (EFT).
What is FINTRAC'S role?
FINTRAC will continue to manage the existing reporting channels, and will still provide user support for reporting entities. Users will still enroll only with FINTRAC for both the Web application and for the use of the batch reporting software.
Will my reporting obligations to FINTRAC change?
Reporting Entities' obligations will remain the same. All REs will have to send the same EFT reports to FINTRAC as before; those EFT reports will also be sent to the CRA through this process. This reporting is done through the creation of a new shared component of existing reporting channels (F2R and batch reporting).
Are other reports affected?
There will be no change to any other report type submitted to FINTRAC. Only EFTRs will be part of the Shared Reporting Process.
What about reporting on paper?
If you do not have the technical capability to report EFTs electronically, you may use FINTRAC's paper form to report. However, EFTRs submitted on paper will not be sent to the CRA. You must fill out the CRA's own form (see link below) to report EFTs to the CRA on paper.
Will the CRA be getting more information through this process?
No. The CRA will not receive other reports through the Shared Reporting Process. It should also be noted that the CRA will not have access to FINTRAC's database or other information through the SRP.
Where can I find out more about what the CRA is doing with the information?
FINTRAC is not involved in the use, disclosure or retention of the EFTRs sent to the CRA. For information on those topics, visit https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/electronic-funds-transfer-reporting.html.
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