CRA Review Process: Who Gets Audited and Why?

cra tax audit cartoonRegardless of how meticulous we are with our paperwork and honest we are with the Government, every individual Canadian dreads the thought of an”audit”. But what are your chances of actually being audited? Well, according to the CRA, during the 2008-2009 fiscal year, 87,000 T1 returns were subject to a post assessment targeted review. This resulted in 31% of them being adjusted. 89,000 T1 returns were subject to a random review, resulting in 17% being adjusted.

According to The Canada Revenue Agency (CRA), they review a number of returns to ensure that they were filed correctly. A small percentage of Canadian tax returns are selected for review before they are assessed. These are flagged by the CRA`s computer system because they display characteristics indicationg a higher possibility of non–compliance. This could be because of the size of the refund, the type of deduction or credit claimed, or the taxpayers compliance history. Some returns are also selected at random.

According to CRA, the chances of being selected for review are the same whether you  paper file or electronically file your return.

image source:

About admin

I write blogs. Lots and lots of blogs!
This entry was posted in Uncategorized and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s