Personal CRA Audit & Representation

CRA reviews can be triggered by various factors, including mismatches between information slips (T4, T5, etc.) and your reported income, unusual deductions or credits compared to similar taxpayers, random selection for review, or specific risk indicators in your return. Mismatches to slips are common triggers—if CRA receives information slips that don't match what you reported, they may initiate a review to reconcile the discrepancy. Large or unusual claims for deductions or credits may also trigger reviews, as CRA wants to verify eligibility and documentation. Random selection is another common trigger, where returns are selected for review regardless of specific concerns. While we can't guarantee you won't be reviewed, proper documentation and accurate reporting can help reduce the likelihood of review and ensure you're prepared if one occurs. We help identify potential triggers in your return and ensure proper documentation is maintained.

Yes, with proper Power of Attorney (POA) authorization, we can represent you fully and communicate directly with CRA on your behalf. A POA allows us to speak to CRA officials, respond to inquiries, provide documentation, and handle all correspondence related to your review or audit. This means you don't need to deal directly with CRA—we handle all communication, which reduces your stress and ensures professional handling of all matters. We prepare the POA forms, submit them to CRA, and once authorized, we can act as your representative throughout the entire process. However, it's important to note that while we represent you, you remain responsible for the accuracy of information provided and any tax owing. We work closely with you to gather accurate information and ensure all responses are complete and truthful. Our representation helps protect your rights and ensures proper handling of the review process, but outcomes depend on the specific circumstances of your case.

Audit timelines vary significantly depending on the scope and complexity of the review, ranging from weeks to several months. Simple reviews focusing on specific items like missing slips or verification of deductions may be resolved within a few weeks if documentation is provided promptly. More complex audits involving multiple years, extensive documentation requests, or disputed issues can take several months to resolve. The timeline depends on factors such as the completeness of your documentation, the complexity of issues being reviewed, CRA's workload, and whether additional information is requested. We help manage timelines by ensuring responses are complete and timely, following up on status when appropriate, and coordinating efficiently with CRA. However, we can't guarantee specific timelines, as CRA processing times vary. We keep you informed throughout the process and work to resolve matters as efficiently as possible while ensuring thorough and accurate responses.

The documentation required depends on what CRA is reviewing, but typically includes receipts, invoices, bank statements, employment records, T4/T5 slips, and any other documents that support the items being reviewed. For deduction claims, you'll need receipts and invoices showing the expenses were incurred. For income verification, you'll need all relevant slips and records. For employment expenses, you'll need a completed T2200 form from your employer. We help identify what documentation is needed based on the specific review, organize it chronologically, and ensure completeness before submission. It's important to provide complete documentation upfront to avoid delays and additional requests. If you're missing documentation, we help identify alternatives or explain the situation to CRA. However, incomplete documentation can prolong the review process and may affect outcomes. We work with you to gather all available documentation and organize it effectively for CRA review.

If you disagree with CRA's assessment or proposed adjustments, you have the right to object and appeal. The objection process typically begins with filing a Notice of Objection within 90 days of the assessment date. We help prepare objections, gather supporting documentation, and present your case clearly to CRA. The objection process allows for review by CRA's Appeals Division, which may result in resolution without formal appeal. If the objection is not resolved favorably, further appeal options are available through the Tax Court of Canada. However, the success of objections and appeals depends on the specific facts and circumstances of your case, and outcomes vary. We help assess the strength of your position, prepare effective objections, and guide you through the appeal process if needed. It's important to note that while we work to achieve favorable outcomes, we can't guarantee specific results, as outcomes depend on the merits of your case and CRA's interpretation of tax law.