CRA Audits in Quebec
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 Quebec differs from federal law
Quebec is the only Canadian province that administers its own provincial income tax separately from the federal system. This means Quebec residents may be audited by two different tax agencies: the Canada Revenue Agency (CRA) for federal taxes and Revenu Quebec for provincial taxes.
- Revenu Quebec has its own auditors, its own assessment process, and its own rules, though many mirror federal rules. An audit by one agency does not automatically trigger an audit by the other, but they do share information.
- Under the Tax Administration Act (CQLR c A-6.002), Revenu Quebec can audit your books and records, request documents, and reassess your provincial tax returns within the statutory limitation periods.
- You have the right to be represented by an authorized person (such as an accountant or tax lawyer) during a Revenu Quebec audit, just as with a CRA audit.
- The general reassessment period for Revenu Quebec is three years from the date of the original notice of assessment (four years for certain situations). In cases of fraud or misrepresentation, there is no time limit.
- Quebec residents file two separate tax returns each year: the federal return (T1) with the CRA and the provincial return (TP-1) with Revenu Quebec. Discrepancies between the two can trigger an audit by either agency.
Additional Steps in Quebec
If you receive an audit notice from Revenu Quebec, respond within the time indicated. You may authorize a representative using Form MR-69. Keep all supporting documents for at least six years from the tax year in question. Contact Revenu Quebec at 1-800-267-6299 for individuals or consult a tax professional familiar with Quebec's provincial tax system.
Relevant Law: Tax Administration Act (CQLR c A-6.002); Taxation Act (CQLR c I-3)
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.
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