Area of Law: Tax Law
Answer # 3740
What is a CRA Review?
Region: Ontario Answer # 3740If the CRA tells you that your tax return is being reviewed, it is simply to ensure that the amounts you have claimed are reported accurately.
A review is not an audit. Do not panic. The CRA conducts about 3 million reviews each year.
CRA may simply want to verify some documents to support your claim. Or, if there is an inconsistency in your reporting, CRA may review and reassess your tax return. In a review, income amounts, deductions, and credits are all reviewed for one specific year to be sure they are reported correctly. CRA will likely ask for more information and request supporting documentation. To get help, ask a lawyer now.
How will CRA notify me that I am being reviewed?
CRA may send a letter, call, or if you have an online ‘My Account’ CRA will send you an email to tell you that you have new mail in your account.
Why does the CRA conduct reviews?
Since our tax system is self-reporting and supporting documents are not usually included in a tax return (e.g. invoices, RRSP contribution verification) CRA conducts reviews to ensure that the tax return was filed correctly.
It is important to respond promptly to CRA as there is a time limit for doing so. You may want to hire an accountant or lawyer to help you.
Get help
For advice and assistance with tax planning, a CRA tax dispute, or other tax issues, contact KPK Law.
Personal and business tax issues are vast and complicated. To get help, ask a lawyer now.
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