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Being audited by the Canada Revenue Agency (CRA) can be very frightening and stressful.

Those who earn a wage or salary present very few compliance problems. For most salary and wage earners their taxes are collected through payroll deductions and their income is readily verified through reference from information filed by their employers. Your return can be flagged for an audit for many reasons.

No matter how you were selected, it is very important that you know your rights. Make sure you contact a professional at the beginning of the issue to ensure you’re protected. After receiving the post-audit proposal (a summary of the CRA’s findings) your response time is limited (generally 30-days), so it’s important to act accordingly.

Invictus LLP’s role throughout the audit period is to ensure that the law and your rights are upheld. The CRA will often enforce their administrative policy over and above the jurisprudence that the Tax Court of Canada has established.

The CRA’s audit period is generally limited to 3 years from the original notice of assessment. Be aware that the CRA can expand the scope of the audit period if you sign a waiver – it often is not in your best interests to sign a waiver. Contact us and we can help you avoid the pitfalls people face during an audit.

If the results of your audit end up being unfavourable you have a right to dispute the CRA’s findings. You can file a notice of objection within 90-days, which will hold all legal and collections actions in a state of suspension for the most part.

If you are being audited and want to know more about your rights during this process, contact  a lawyer at Invictus LLP today!

CRA Resources

The Tax Audit

Review of your Tax Return by the CRA

Invictus LLP’s website contains information of a general nature, was not created to provide legal advice, and you must not rely upon it for legal advice. All tax related matters are fact-driven and will differ from the scenarios we have provided. If you have questions and need tax and legal advice, please contact al lawyer at our office for help!