The Canada Revenue Agency’s (CRA) tax audit program brings in hundreds of millions of dollars in taxes every year. In 2016, the federal budget added $444 million over five years for the CRA to prevent tax evasion and improve tax compliance. The 2017 federal budget included an additional $523.9 million over five years, targeting both wealthy individuals and multinational corporations. The CRA’s annual post-assessment review process of individual income tax returns commenced on June 11, 2018. While receiving a letter from the CRA that your file is under review or requires an audit may bring about some anxiety, the best thing to do is forward a copy of the letter so that Bateman MacKay LLP can help.
A post-assessment review is a common request for more information to confirm information filed on your tax return. As electronic filing is now the most prevalent filing choice, the CRA conducts these reviews to ensure taxpayers have the documented receipts necessary to support the claims made on their returns. Usually, once the supporting documentation is submitted, there are no further steps. If your tax return is selected for review, the CRA will send a physical or electronic letter to you or your representative to request the information required. If these requests are ignored, they may turn into a full audit investigation by the CRA.
If you have any questions about CRA reviews or audits, reach out to your Bateman MacKay LLP account manager.