The CRA is going digital. Here’s how to stay ahead of their email notices with Xero

As the Canada Revenue Agency (CRA) shifts from paper mail to digital communications, Canadian taxpayers, especially contractors, real estate agents, and e-commerce business owners, face new challenges in staying compliant. Missing a single CRA notice can lead to penalties, lost benefits, or audit headaches.  

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At Ennovo Solutions, we specialize in helping Canadian businesses navigate tax complexities. This blog provides a step-by-step guide to mastering the CRA’s digital notices, leveraging Xero to streamline compliance, and answers common questions to ensure you’re audit-ready and stress-free.

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What is changing with CRA communications?

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The CRA transitioned to digital correspondence for business taxpayers starting May 12, 2025, for new business accounts and June 16, 2025, for existing accounts registered with My Business Account or Represent a Client. Optional email notifications began in May 2024, with mandatory alerts for account changes (e.g., address or direct deposit updates). Benefit recipients, including some self-employed individuals, started receiving online mail from July 3, 2025, if registered for a CRA account.

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Most notices are now delivered through:

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• My Business Account for businesses or My Account for individuals

• Email notifications to your registered email address
  

These cover critical updates, including:

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• Notices of Assessment or Reassessment for income tax or GST/HST

• GST/HST filing and payment reminders

• Requests for supporting documents (e.g., contractors’ expense receipts, e-commerce sales records)

• Payment due dates

• Benefit eligibility updates (e.g., GST/HST credits, Canada Child Benefit)

For example, an e-commerce seller in Toronto might receive a GST/HST filing reminder via email, while a real estate agent in Vancouver could find a reassessment notice in their My Business Account. Contractors in Calgary may need to submit expense records digitally. At Ennovo Solutions, we’ve seen clients miss notices due to spam filters or portal oversight.  

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Using Xero to track GST/HST filings and deadlines can simplify compliance by helping you organize your tax information and prepare the reports you need to file with the CRA

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Why this shift to digital matters

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Ignoring CRA digital notices can lead to serious consequences:
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• Penalties for Missed Deadlines: A contractor missing a GST/HST filing could face a 1% penalty on a $20,000 remittance, plus 0.25% monthly interest, totaling $200 upfront and growing.

• Lost Benefits: Notices about GST/HST credits or Canada Child Benefit are time-sensitive; missing them could mean losing entitled funds.

• Spam Risks: CRA emails can land in spam folders without proper email settings.

• No Follow-Ups: The CRA rarely calls or sends secondary reminders, so a missed notice could go unnoticed.
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For instance, a real estate agent could've missed a reassessment notice in their spam folder, resulting in a $1,500 penalty. Proactive management of digital notices prevents such costly oversights.

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How to stay organized with CRA emails and Xero

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Here are five actionable steps to manage CRA digital notices, with Xero as a key tool for contractors, real estate agents, and e-commerce owners.

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a. Use a Dedicated Email Address

Create a separate email (e.g., taxes@yourdomain.com) for CRA communications. This keeps notices separate from customer emails or marketing clutter, especially for e-commerce sellers managing high email volumes.

Why Xero Helps: Xero’s dashboard allows you to set up filing reminders within the platform, helping you stay on top of key tax deadlines. However, it does not access or monitor your CRA-registered email.

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b. Whitelist CRA Senders

Prevent CRA emails from going to spam by adding these domains to your safe sender list:
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• @cra-arc.gc.ca

• @notification.canada.ca
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How to Do It:

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• Gmail: Settings > Filters and Blocked Addresses > Create filter > Add CRA domains > “Never send to spam.”

• Outlook: Junk Email Options > Safe Senders > Add CRA domains.
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Why Xero Helps: Xero’s Workpapers notifications help your team manage internal workpaper tasks and deadlines. While these reminders support your practice’s workflow, they are separate from CRA filing deadline alerts, which are sent directly by the CRA via email.

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c. Set Up a VIP Folder or Label
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Create a dedicated folder for CRA emails:

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• Gmail: Filter CRA emails and apply a “CRA Notices” label, marking them as “Important.”

• Outlook: Set a rule to move CRA emails to a “CRA Communications” folder and flag for follow-up.
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This is ideal for real estate agents juggling client emails or contractors managing project correspondence.

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d. Log in to CRA My Account Monthly
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Some notices, like document requests, appear only in your My Account or My Business Account portal. Check monthly to stay compliant.
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How to Set It Up:
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• Register at canada.ca.

• Update your email in the portal.

• Bookmark the login page.
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Why Xero Helps: Xero helps you track GST/HST filings and deadlines within its platform, making it easier to manage your tax obligations. However, you still need to log in to your CRA portal regularly to view official notices and document requests.

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e. Use Xero and Calendar Reminders

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Set a monthly calendar reminder to check your CRA account and emails. Better yet, se Xero to automate your recordkeeping and GST/HST calculations, which supports your compliance efforts as the CRA moves to digital notices. You still need to regularly check your CRA portal and email for official communications.
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• Contractors: Xero tracks deductible expenses (e.g., tools, fuel) and generates GST/HST reports for CRA submissions.

• Real Estate Agents: Xero categorizes commission income and deductions like marketing costs, streamlining reassessment responses.

• E-commerce Owners: Xero can sync with platforms like Shopify to import sales data and calculate GST/HST. You can then use these reports to file your returns manually with the CRA.
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Example: An e-commerce seller using Xero could avoid a $1,000 GST/HST penalty by catching a filing notice flagged in their Xero dashboard, linked to their My Business Account.

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How Ennovo Solutions can simplify your accounting woes
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Navigating the CRA’s digital shift can be daunting, especially for contractors, real estate agents, and e-commerce owners juggling busy schedules. At Ennovo Solutions, we make compliance seamless:
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• Xero Expertise: We set up and optimize Xero to track income, expenses, and GST/HST, ensuring you’re ready for CRA notices. For example, we helped a Calgary contractor save $2,000 in penalties by automating GST/HST filings with Xero.

• Personalized Support: Our team ensures your My Business Account is configured correctly, with email notifications and portal checks integrated into your workflow.

• Audit Readiness: We organize your records to respond to CRA document requests quickly, whether you’re a real estate agent tracking commissions or an e-commerce seller managing sales taxes.

• Proactive Planning: We monitor CRA deadlines and updates, like the May 2025 digital transition, to keep you ahead of compliance requirements.
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Contact us at ennovosolutions.com/contact for a free consultation to simplify your accounting and stay CRA-compliant.
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Common questions about CRA digital notices
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Q: When did the CRA start sending digital notices?

A: The CRA began digital correspondence for new business accounts on May 12, 2025, and existing accounts on June 16, 2025. Optional email notifications started in May 2024, and benefit recipients began receiving online mail from July 3, 2025.
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Q: What if I miss a CRA email notice?

A: Missing a notice can lead to penalties (e.g., 1% of GST/HST owed plus 0.25% monthly interest) or lost benefits. Check your My Business Account monthly and use Xero’s reminders to stay on top of deadlines.

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Q: How do I know if a CRA email is legitimate?

A: Legitimate CRA emails come from @cra-arc.gc.ca or @notification.canada.ca, direct you to canada.ca, and never request sensitive information like your SIN or banking details.

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Q: Can Xero help with CRA compliance?

A: Yes! Xero automates GST/HST calculations and tracks expenses, making it easier for contractors, real estate agents, and e-commerce owners to prepare for CRA compliance. However, Xero does not integrate directly with the CRA’s My Business Account, so you must still log in to the CRA portal to view and respond to official notices

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Bonus: Watch Out for Scams
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Since the CRA’s digital transition began in May 2025, scammers have increasingly mimicked CRA emails. Legitimate emails:
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• Never request your SIN or banking details.

• Direct you to canada.ca for My Account login.

• Use official domains (@cra-arc.gc.ca, @notification.canada.ca).
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Learn more at CRA’s fraud prevention page. Ennovo Solutions has helped clients identify and report scams, protecting their finances.
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Final Checklist for Digital CRA Readiness
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• [ ] Email updated in My CRA Account

• [ ] CRA senders whitelisted

• [ ] VIP folder or label set up

• [ ] Monthly My Account check-ins scheduled

• [ ] Xero configured for GST/HST and expense tracking

• [ ] Able to identify legitimate CRA emails

The CRA’s digital shift, effective since May 2025 for businesses and July 2025 for benefits, demands proactive management. By using Xero, a dedicated email, and Ennovo Solutions’ expertise, you can stay compliant with ease. Visit Ennovo Solutions to see how we can help you to simplify your tax obligations and keep your business audit-ready.

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About Ennovo Solutions: As a trusted Canadian accounting firm, Ennovo Solutions specializes in tax compliance for contractors, real estate agents, and e-commerce businesses. Our Xero expertise ensures you stay ahead of CRA requirements. Contact us at our Ennovo Solutions Contact Page for personalized support.

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