Every taxpayer’s nightmare is to get a notice from the CRA that you are going to be audited. Around 30,000 such letters were sent out in 2018 (according to tax lawyer David Rotfleisch) so we are right to be afraid!
So, who are the people most likely to be audited?
It is important to really understand the letter that you get from the CRA if it wants to review your taxes. A tax review notice is not an audit letter.
Tax reviews are quite common, and it means that the taxman wants to check the records and receipts that you used to report income and to claim expenses. Reassessments can be done randomly or because the numbers received from other sources does not match with your numbers. Usually you show them the paperwork and the matter will be over. However, if you do not respond to the CRA or they do not like your responses to their questions then your review may turn into a full-on audit.
From an article by Erica Alini on www.globalnews.ca
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