Audit Disclosure: Do I Have The Right To Remain Silent?

In the 2021 Federal Budget, the government proposed the allocation of more than $304 million over the next five years to support audit disclosures through the funding of the Canada Revenue Agency's (CRA) new and existing programs. The purpose of these programs is to combat tax evasion and aggressive tax avoidance. Such measures will include an increase of audits and enhancing capacity to identify tax evasion.

As we emerge from the COVID-19 pandemic, individuals and entities will be looking to improve their financial positions and the CRA will be looking to recover on its significant investment in combating tax evasion. As such, we expect to see a significant increase in the number of tax evasion investigations.