A CRA audit can be a stressful and time-consuming experience for any Vancouver business. Understanding what raises red flags with the Canada Revenue Agency in 2025 can help you stay compliant and audit-free.

Review our Tax Preparation Services to ensure you’re minimizing risk through accurate and compliant reporting.

Top CRA Audit Triggers in 2025

• Unusual deductions: Excessive expenses, especially related to meals, entertainment, or home office use.
• Large fluctuations in income: Significant changes in reported income year-over-year may raise suspicion.
• Late or inconsistent filings: Missing deadlines or reporting inconsistencies across filings is a red flag.
• Discrepancies with third-party data: CRA often matches your return with slips filed by others (like T4s, T5s).

Explore more in our article: Understanding Financial Statements.

How to Stay Prepared

Keeping well-organized, detailed financial records is your best defence against an audit. Work with a qualified accountant to review your returns and financial data annually.

Our Business Accounting Services and Tax Planning Services help businesses in Vancouver reduce audit risk and stay fully compliant year-round.