If you lose or fail a Canada Revenue Agency (CRA) audit, there can be serious financial and legal consequences. To get help, ask a lawyer now.

Audit findings

Upon competition of an audit, the CRA will issue an audit report or a proposal letter. This document will outline the findings and adjustments that are to be made to your tax filings. This might include:

• Additional taxes owed
• Penalties
• Interest charges

The CRA will issue a Notice of Reassessment that reflects the findings.

If the audit goes against you, further audits may ensue based on the failed audit. For example, a failed business audit could lead to a personal audit, or an audit of additional years, or your file can be flagged for future audits, and so on.

Steps to take after losing or failing an audit

It is important to review the auditors findings and ensure you understand the changes and calculations made by the CRA. You may wish to consult a tax professional to assess the validity of the CRA’s conclusions.

After reviewing the findings, you may choose to pay the additional taxes, penalties or interest immediately, or negotiation a payment plan with the CRA. You may also wish to file an objection if you disagree with the findings by submitting a Notice of Objection Form T400A to the CRA within 90 days of receiving the reassessment.

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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