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In 2010, the Canada Revenue Agency (CRA) began a letter campaign to inform selected taxpayers about their tax obligations and to encourage them to correct any inaccuracies in their past income tax and benefit returns.
These educational letters are being mailed to individuals in selected activity groups where taxpayers are at risk of misunderstanding their tax obligations.
There are two types of educational letters the CRA might send to selected taxpayers: one to educate them about specific claims made on their returns, and another to educate and notify them that the CRA may conduct an audit in their activity group.
In January 2016, the CRA will send approximately 30,000 “intent-to-audit” letters to selected groups of individual taxpayers and business owners who claim consecutive business or rental losses or who are employees claiming employment expenses.
The letters objective is to encourage taxpayers to review and where applicable correct their tax affairs.
CRA’s emphasis is on helping individuals and small businesses better understand their tax obligations, which in turn increases future voluntary compliance, protects the government’s tax base, and utilizes resources within the CRA more effectively.
If you or your clients have questions about the CRA’s Office Audit Letter Campaign or need help making changes to previously filed returns, go to www.cra.gc.ca/lettercampaign. You can call us at Bateman Mackay if you have any further questions.