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Compliance Update: Reporting & XML Changes for 2026 Information Returns in Canada

Significant changes to what’s required when filing slips like T4/T5 in 2026—including XML schema updates and new validation rules—mean you must adjust your systems now.

By NomadicTax Research Team · 6-7 min read

What’s Changing for 2026 Information Returns

  • Updated XML schemas: The CRA has harmonized XML specification files for 2026. The file lemmcommontype.xsd was removed and its content merged into simple.xsd and complex.xsd, aligning with stricter validation rules. (canada.ca)
  • New validation requirements: Starting January 2026, additional validations will occur after schema checks. Return submissions with schema errors will generate detailed Return Error Reports. (canada.ca)
  • T4/T5, T5013, etc. data elements updated: Notably, First Home Savings Account (FHSA) carryforward amounts and new variables (boxes) have been added to certain slips (e.g., T5013). (canada.ca)
  • Notice of Assessment (NOA) changes**: As of February 9, 2026, NOAs and reassessments will be made available exclusively via CRA portals immediately after processing. Software-submitted NOA checkboxes revised accordingly. (canada.ca)

Implications for Businesses, Payroll, and Tax Professionals

  • Software and vendor adjustments: Payroll and tax software vendors must implement updated schemas and validation logic. Ensure your software is certified for 2026 information return filing. |
  • Internal reporting accuracy: Data like FHSA contributions and carry-forwards, capital gains/loss details, and business investment loss boxes may impact benefits or client reporting. Prepare to gather needed documentation. |
  • Representatives and filings: The «Authorize a Representative» flow has changed; EFILE representatives must now use the “Represent a Client” portal to obtain client authorization. |
  • Timely submissions & compliance: Errors from invalid schemas may result in rejections or delays. Missing deadlines for slips or incorrect information can lead to penalties. |

Examples

Example A: Small tech-startup payroll provider

  • In 2026, must include FHSA carryforward and variable “H” and “F” amounts for employees in slip data. Existing payroll systems must adjust their output fields. |
  • The XML files used internally must reflect simplified structure (merged schema files). If validation fails, slips may be rejected. |

Example B: Tax preparer firm handling trust slips (T5013)

  • They must update to ensure Box 137 (Business investment loss) and Box 151 (capital gains losses) are included correctly in the schema. |
  • When clients receive NOAs, they won’t get a mailed version if they have authentic CRA portal access. Need to inform clients to check accounts. |

What You Should Do Now

  • Communicate with your software provider to confirm schema updates and software certification for 2026. |
  • Educate your internal teams about the changes—especially what data to collect now to avoid missing new elements. |
  • Ensure your clients or employees know how to access NOA via CRA portal. |
  • If you handle multiple jurisdictions, check provincial requirements—they may not align. |

By staying ahead of these changes, you’ll meet compliance requirements smoothly and avoid penalties or delays as filing season progresses.

Sources

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