CRA Audits
Written in plain language for general understanding. This is educational content, not legal advice. Based on Canadian federal statutes and official sources.
What is this right?
The Canada Revenue Agency (CRA) has the power to audit any tax return under the Income Tax Act (Sections 231.1 and 231.2). An audit is a review of your records to make sure you reported your income and deductions correctly.
The Taxpayer Bill of Rights gives you 16 specific rights when dealing with the CRA. These include the right to be treated fairly and professionally, the right to complete and accurate information, and the right to be represented by someone you choose (Right #15).
An audit is not a criminal investigation. The auditor is checking your math and your records, not accusing you of a crime. You are required to keep your tax records for at least 6 years (Section 230).
If you disagree with the auditor's conclusions, you have the right to say so. You can request a meeting with a team leader, and if the CRA issues a reassessment you disagree with, you can file a Notice of Objection.
When does it apply?
This applies to every individual and business taxpayer in Canada.
- The CRA selects files for audit based on risk factors, random selection, industry-specific campaigns, or tips from third parties.
- Being audited does not mean you did something wrong — it is a routine part of the tax system.
What should you do?
- Read the audit notification carefully — it will tell you which tax years and which items are being reviewed.
- Gather your records before the auditor's deadline. This includes receipts, bank statements, invoices, and contracts.
- Consider hiring a tax professional or representative — authorize them with Form T1013.
- Respond within the timelines given in the audit letter.
- If you disagree with the auditor's findings, put your disagreement in writing within 30 days.
- Ask to speak with the auditor's team leader if you cannot resolve the issue.
- File a Notice of Objection if the CRA issues a reassessment you believe is wrong.
What should you NOT do?
- Don't ignore the audit letter — the CRA will proceed without your input and you may lose your chance to explain.
- Don't destroy or hide records — this is a serious offence under the Income Tax Act.
- Don't send documents by regular email — use My Account, registered mail, or secure methods.
- Don't waive solicitor-client privilege without careful thought — talk to a lawyer first.
- Don't assume the auditor is always right — you have the right to challenge their conclusions.
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