Why are Audits important?
Audits are an important part of the Canada Revenue Agency’s (CRA) range of activities aimed to make sure that the tax system is fair for everyone. During audits, the CRA looks at the books and records of taxpayers to confirm whether they are fulfilling their tax obligations, following tax laws correctly, and receiving any benefits or refunds to which they are entitled.
The vast majority of taxpayers comply with tax laws in Canada.
How does the CRA select files for audits?
The CRA selects which files to audit based on a risk assessment. The assessment looks at a number of factors, such as the likelihood or frequency of errors in tax returns or whether there are indications of non-compliance with tax obligations. The CRA also looks at the information it has on file for a taxpayer, and may compare that information to similar files or consider information from other audits or investigations.
How does the CRA conduct audits?
A CRA auditor will contact you by mail or phone, or both, to begin the audit process and inform you of the date, time, and location of the audit.
Audits can take place on-site or off site. On-site audits take place at your residence, business or representative’s office. On-site audits are helpful in completing the audit sooner as questions can be addressed right away.
If the audit is not conducted on-site, it will take place at a CRA office. Your auditor will advise you on how to send your documents to them.
How Can we help?
We can represent you during this process to ensure that all the correct paperwork is submitted. In the event that you do not agree with the auditor’s assessment, we can appeal on your behalf. We work closely with you and the auditor to ensure the process goes through as smoothly as possible