What is CRA Auto-fill My Return?
Auto-fill My Return (AFR) is a CRA service that lets certified tax software download your tax slips (T4, T5, T5008, T3, etc.) directly from the CRA’s records. It appears in TaxCycle, ProFile, DT Max, and consumer software like Wealthsimple Tax and TurboTax.
The goal is convenience: instead of typing slip data manually, the software pre-fills it. For most slips (T4 employment income, T5 interest) this works well. For capital gains, it creates a false sense of accuracy.
What AFR pre-fills for capital gains
When you pull AFR, the T5008 slips arrive with these fields:
| AFR field | Maps to | Reliability |
|---|---|---|
| Security description | Schedule 3 description | Usually reliable |
| Box 21 — Proceeds | Schedule 3 proceeds | Almost always correct |
| Box 20 — Cost or book value | Schedule 3 ACB | Often wrong, blank, or incomplete |
| CUSIP / account number | Identification | Reliable |
The critical gap: AFR does not contain the correct adjusted cost base. It merely echoes whatever the broker filed on the T5008 — which has all the known problems of box 20.
Why AFR numbers differ from what you should report
The discrepancy between AFR data and your correct filing amounts comes from the same structural problems that make box 20 unreliable:
- Pooling across brokers: You hold RY at Questrade and TD. Each broker files a separate T5008 with only their own cost base. AFR shows both slips with partial cost — neither is the pooled ACB.
- Return of capital: Annual T3 box 42 distributions reduce ACB. Brokers rarely adjust their reported book value for these. AFR inherits the inflated cost.
- DRIP purchases: Reinvested dividends add to ACB. Many brokers report a box 20 that doesn’t include these additions — so AFR understates your cost base.
- FX conversion: Box 20 for USD-traded securities may be in USD or converted at the wrong rate. AFR passes this through as-is.
- Blank values: When the broker leaves box 20 empty, AFR pre-fills nothing — the software may default to zero cost, creating a phantom gain.
How accountants should use AFR for capital gains
The professional workflow treats AFR as evidence, not truth:
- Pull AFR to get a complete list of dispositions the CRA expects to see reported.
- Use proceeds for reconciliation — confirm your own calculated proceeds match box 21 for each disposition.
- Ignore or override box 20 — replace with the correct pooled ACB from your own records or your client’s capital gains tracking tool.
- Document overrides — for each material difference between the AFR cost and your reported ACB, maintain a record showing why (transfers, ROC, pooling, FX).
- Completeness check — every T5008 in AFR should have a corresponding Schedule 3 entry (or a documented exclusion reason like a registered-account disposition that was incorrectly slipped).
Reconciling AFR against your data
A proper AFR reconciliation produces a clear trail:
| Check | Source A (AFR) | Source B (your records) | Action |
|---|---|---|---|
| Disposition exists? | T5008 slip present | Trade in history | Match — report on S3 |
| Proceeds match? | Box 21 | Your calculated proceeds | Use your figure; flag if >$10 difference |
| Cost base match? | Box 20 | Your pooled ACB | Always use your ACB; document the override |
| Missing from AFR? | — | Trade in history | Still report — broker may have filed late |
| Extra in AFR? | Slip present | No matching trade | Investigate — possibly a different account or an error |
A note for DIY filers using Wealthsimple Tax or TurboTax
Consumer tax software also uses AFR. When you connect your CRA account and import slips, the same T5008 data pre-fills. The risk is that consumer software makes it easy to simply accept and submit without reviewing cost base.
If you have any of the following, the AFR cost base is likely wrong:
- The same stock held at more than one brokerage
- ETFs that pay return of capital (most Canadian ETFs do)
- DRIP reinvestments in non-registered accounts
- Shares transferred between brokers
- US-dollar trades (the FX conversion on cost must use the settlement-date BoC rate)
Review every pre-filled cost base before submitting. Replacing it with the correct ACB can mean the difference between overpaying thousands in tax and filing correctly.