Compliance
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 • April 7, 2026
## 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](https://www.canada.ca/en/revenue-agency/services/e-services/filing-information-returns-electronically-t4-t5-other-types-returns-overview/whats-new-2026.html?utm_source=openai))
- **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](https://www.canada.ca/en/revenue-agency/services/e-services/filing-information-returns-electronically-t4-t5-other-types-returns-overview/whats-new-2026.html?utm_source=openai))
- **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](https://www.canada.ca/en/revenue-agency/services/e-services/digital-services-businesses/efile-electronic-filers/efile-news-program-updates.html?utm_source=openai))
- **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](https://www.canada.ca/en/revenue-agency/services/e-services/digital-services-businesses/efile-electronic-filers/efile-news-program-updates.html?utm_source=openai))
## 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.