What You Need to Know About Ontario’s Recent Annual Filing System Changes

If you’re an Ontario business owner, you may have noticed significant changes to how you file your annual corporate returns in recent years. The switch from the CRA-integrated system to the new Ontario Business Registry has transformed the filing process, leaving many business owners confused about their obligations.

This guide breaks down the recent overhaul of Ontario’s annual filing system, highlighting what’s changed and how these updates affect your business compliance requirements.

The Major Shift: Decoupling from CRA Tax Filings

For over two decades, Ontario had a unique arrangement that made annual return filing relatively simple for business owners. Here’s what changed:

The Old System (Pre-2021)

Previously, Ontario corporations could satisfy their annual return requirements by completing Schedule 546 as part of their T2 corporate tax return. This convenient process meant:

• You filed once with the CRA
• The CRA forwarded your information to Ontario
• Your accountant likely handled both filings simultaneously
• Many business owners weren’t even aware they were filing two separate documents

This system had been in place since the late 1990s, creating a routine that many businesses and accounting firms had built into their processes.

The End of an Era: May 15, 2021

On May 15, 2021, everything changed. The Canada Revenue Agency stopped accepting Ontario annual returns with tax filings. This meant:

• Schedule 546 was no longer part of the T2 tax return
• Ontario corporations could no longer satisfy their annual return requirement through tax filings
• Business owners became responsible for filing directly with Ontario
• Many accountants who previously handled this task through tax preparation were no longer automatically completing it

This sudden change created a gap in compliance for many businesses that weren’t aware of the switch or didn’t understand their new obligations.

The Introduction of the Ontario Business Registry

Following a brief transition period, the Ontario government launched its replacement system:

The New Ontario Business Registry (October 19, 2021)

The Ontario Business Registry (OBR) went live on October 19, 2021, fundamentally changing how businesses interact with the government for corporate filings:

• A fully electronic portal replacing paper-based processes
• 24/7 online access for over 90 different transactions
• Direct filing of annual returns through the registry
• Required use of a “company key” for secure access
• Email-based communications and reminders

The OBR was designed to modernize Ontario’s business registration system, providing faster service and creating a more current and accurate public record. While the change brought improvements in efficiency, it also created a learning curve for business owners accustomed to the old system.

The Transition Period Gap

The timing of these changes created a unique situation for many corporations:

The Temporary Exemption (May 15 – October 18, 2021)

Because the CRA stopped taking filings in May 2021, but the OBR wasn’t ready until October, Ontario created a temporary exemption:

• Corporations with returns due between May 15 and October 18, 2021, were temporarily exempted from filing
• This one-time relief covered the “blackout” window during the transition
• Once the OBR launched, the exemption expired
• By early 2022, all corporations were expected to resume annual filings via the new system

This transition period caused confusion for many businesses, with some incorrectly assuming they no longer needed to file annual returns at all.

New Information Requirements

Along with the system change, Ontario updated what information corporations need to provide:

Additional Requirements Under the New System

The annual return form now collects some information that wasn’t required before:

• Official Email Address: Corporations must provide an email address for Ministry communications
• NAICS Business Activity Code: A standardized code identifying your primary business activity
• Enhanced Director Information: More complete details about corporate directors

These additions help the Ministry maintain more accurate records and facilitate electronic communications. The email address is particularly important since the Ministry now sends filing reminders electronically rather than by mail.

Impact on Not-for-Profit Corporations

The changes coincided with another significant update for non-profit organizations:

The Not-for-Profit Corporations Act (ONCA)

On October 19, 2021, the same day the OBR launched, Ontario proclaimed the new Not-for-Profit Corporations Act, 2010 (ONCA):

• Non-profits previously governed under the old Corporations Act transitioned to ONCA
• ONCA corporations are explicitly subject to the CIA annual return filing requirement
• Non-profits now follow the same filing process as for-profit businesses
• The annual return deadline (six months after fiscal year-end) applies to all corporations

This alignment created consistency across all types of Ontario corporations but required non-profits to adapt to new compliance requirements.

How These Changes Have Affected Businesses

The shift to the new system has had several practical impacts on Ontario corporations:

Enforcement and Compliance

With the new system fully implemented, Ontario has become more active in enforcing annual filing requirements:

• Companies that haven’t filed returns since the transition are being marked “in default”
• Non-compliant corporations are receiving notices of pending cancellation
• Some longstanding corporations have been surprised to discover they’ve been dissolved for non-compliance
• The registry now updates in real-time, making non-compliance more immediately visible

Common Challenges Business Owners Face

The transition has created several specific challenges:

1. Awareness Gap: Many business owners weren’t informed of the change and assumed their accountant was still handling the filing
2. Process Learning Curve: The new online system requires learning new steps and obtaining a company key
3. Responsibility Shift: The task previously handled through tax preparation now requires separate attention
4. Deadline Tracking: The six-month post-fiscal-year deadline differs from tax deadlines and must be separately monitored

Who’s Being Caught Off Guard?

The business owners most affected by these changes include:

• Small corporations with limited administrative resources
• Business owners who relied heavily on their accountants for compliance
• Companies with fiscal year-ends that fell during the transition period
• Organizations that had always filed through CRA and weren’t aware of the change

Upcoming Changes to Watch For

While the major overhaul has already occurred, Ontario continues to evolve its corporate requirements:

Beneficial Ownership Register

As of 2023, privately-held Ontario corporations must maintain a register of individuals with significant control (a beneficial ownership register):

• This internal register must record anyone with 25% or more ownership or control
• Currently, this information isn’t filed publicly, but remains with the corporation
• Future changes may require this information to be filed with the government
• This aligns with broader federal-provincial transparency initiatives

Potential Future Integrations

Ontario may continue to modernize its systems:

• Possible integration with federal corporate systems
• Potential inter-provincial agreements to simplify multi-jurisdiction compliance
• Further digital enhancements to the Ontario Business Registry

How to Stay Current With Your Filings

If you’re catching up after these system changes, here’s what to do:

1. Check Your Status: Visit the Ontario Business Registry to verify if your corporation is in good standing
2. Obtain Your Company Key: Request your key through the OBR if you don’t have it
3. File Any Outstanding Returns: Submit returns for any years missed during the transition
4. Update Your Calendar: Set reminders for your new annual filing deadline (six months after fiscal year-end)
5. Clarify Responsibility: Determine who in your organization or external advisors will handle this filing going forward

Get Expert Help Navigating These Changes

The transition to Ontario’s new filing system has created confusion for many business owners. Staying compliant with these evolving requirements can be challenging, especially if you’ve fallen behind during the changes.

Jeffrey Murray Law in Belleville, ON specializes in helping Ontario businesses navigate corporate compliance requirements, including the recent changes to annual filings. Our experienced team can:

• Check your corporation’s current status with the registry
• File outstanding annual returns to bring you back into compliance
• Handle your ongoing annual filings to ensure future compliance
• Provide guidance on other corporate governance requirements

Don’t risk the serious consequences of non-compliance. Contact Jeffrey Murray Law today for expert assistance with your Ontario corporate filings and ensure your business remains in good standing under the new system.