CRA Audits in Manitoba
Reviewed by the Commoner Law Editorial Team. Sourced from Canadian federal statutes and official sources. Provincial information reflects each province's own legislation and court rulings. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
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 to Do If the CRA Is Auditing You in Canada
- 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.
How Manitoba differs from federal law
Tax audits in Manitoba are primarily conducted by the Canada Revenue Agency (CRA) for federal and combined GST/HST matters. Manitoba also has its own Provincial Sales Tax (PST) at 7%, administered by Manitoba Finance, which can conduct separate provincial audits.
- Manitoba is one of the provinces that does not use HST. Instead, Manitoba charges a separate 7% Retail Sales Tax (RST/PST) alongside the federal 5% GST, for a combined rate of 12%.
- The CRA audits your federal income tax, GST/HST, and payroll deductions. Manitoba Finance can audit your provincial sales tax (RST) compliance separately.
- During a CRA audit, you have the right to: know the reason for the audit, be represented by an accountant or lawyer, provide only the records that are relevant, and receive a written explanation of any reassessment.
- Manitoba businesses must keep RST records for at least 6 years after the tax year they relate to, matching the federal requirement for income tax records.
- Manitoba Finance has its own audit staff and enforcement powers under The Tax Administration and Miscellaneous Taxes Act, CCSM c. T2.
Additional Steps in Manitoba
If you are audited by the CRA, you can authorize a representative (accountant, lawyer, or tax professional) using CRA form T1013. For provincial RST audits, contact Manitoba Finance — Taxation Division at 204-945-5603 or 1-800-782-0318. If you disagree with a CRA reassessment, see your rights to object and appeal.
Relevant Law: Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 231.1 (Inspections); The Tax Administration and Miscellaneous Taxes Act, CCSM c. T2; The Retail Sales Tax Act, CCSM c. R130
Common Questions
When does cra audits 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 I do if the Canada Revenue Agency is auditing my tax return?
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 be...
What mistakes should I avoid with cra audits?
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.
CRA Audits in other states
Same topic, different jurisdiction. Pick the one that applies to you.