Why CRA Audits Occur
The Canada Revenue Agency reviews tax returns to confirm accuracy and compliance. Audits may be triggered by discrepancies in reported income, unusual expense claims, or significant changes compared to prior years. Self‑employed professionals and small businesses are often selected due to complex deductions and reporting requirements.
What to Expect During an Audit
Audits begin with a CRA letter requesting documents or clarification. Reviews can be conducted by mail, at a CRA office, or on‑site at your home or business. Typically, auditors examine income records, receipts, bank statements, and supporting documentation for credits or deductions. Most audits cover the past three years, though the CRA may extend further in certain cases.
Your Rights and Responsibilities
Taxpayers are entitled to fair treatment and clear communication during an audit. You have the right to ask questions, request clarification, and challenge reassessments. At the same time, you are responsible for maintaining accurate records, responding promptly to CRA requests, and cooperating with the process.
How We Assist Clients
Our team provides professional representation and practical support throughout the audit process. We help organize documentation, explain CRA requirements, and act as your intermediary with auditors. If reassessments occur, we review the findings, prepare objections when necessary, and work to minimize penalties or interest charges.
- Organizing receipts, invoices, and records
- Explaining audit requests in plain language
- Communicating directly with CRA on your behalf
- Developing strategies to resolve reassessments
Frequently Asked Questions
Do audits always result in more taxes owing?
Not necessarily. Many audits confirm that returns were filed correctly.
How long does an audit take?
Most audits conclude within a few months, though timelines vary depending on complexity.