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ARTICLE · 16 JULY 2024

Budget 2024 Grants CRA Expansive New Audit Powers

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Traditionally, a tax audit has been seen as an administrative process, where a CRA auditor examines the books and records of a taxpayer and proposes adjustments to the characterization...

CanadaTax
Nicholas Horlick
Nicholas Horlick
Kurt Wintermute
Kurt Wintermute
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This article was prepared with the assistance of MLT Aikins Summer Student Sam Riendeau.

The federal government tabled its most recent budget on April 16, 2024 ("Budget 2024"). It includes a variety of proposals expanding the audit and compliance powers of the Canada Revenue Agency ("CRA") under the Income Tax Act (the "Act").

Traditionally, a tax audit has been seen as an administrative process, where a CRA auditor examines the books and records of a taxpayer and proposes adjustments to the characterization and tax treatment of what was originally filed. However, the proposed changes contained in Budget 2024 continue a pre-existing trend of broadening the powers provided to CRA auditors, making the exercise more akin to a legal or regulatory investigation.

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