Tips For Dealing With CRA Audits

The Income Tax Act confers on the CRA a broad range of powers to audit Canadian taxpayers, including registered charities and not-for-profit organizations ("NPOs"). Some examples of those audit powers that have been conferred on CRA include the power to inspect books and records, as well as to compel taxpayers to respond to requests for information or obtain third-party records at CRA's request (potentially subject to CRA having received judicial authorization for the request). Section 231.3 of the Act even provides that a judge may, on an application brought by the Minister of National Revenue, issue a search warrant that allows any person named in that search warrant to enter into and search any building, receptacle, or other place for any document that may afford evidence of an offence under the Act.