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ARTICLE · 04 MAY 2026

Proposed Expansion Of CRA Audit Powers: The Latest

Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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Blake, Cassels & Graydon LLP

Blake, Cassels & Graydon LLP

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On May 4, 2026, the Department of Finance released updated draft legislation expanding the audit powers of the Canada Revenue Agency (CRA) in the income tax context.

CanadaTax
Pooja Mihailovich
Pooja Mihailovich
Erich Schultze
Erich Schultze
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On May 4, 2026, the Department of Finance released updated draft legislation expanding the audit powers of the Canada Revenue Agency (CRA) in the income tax context. While some of the more controversial measures proposed last August have been scaled back, the legislation would still significantly enhance the CRA’s audit toolkit once enacted.

Here are five highlights of the proposed legislation, which has already received first reading in the House of Commons as Bill C-31:

  1. No compelled testimony—for now. As currently drafted, the legislation no longer contains the previously proposed power to compel taxpayers to answer questions under oath or affirmation. This was one of the most contentious features of the original proposal, and its exclusion is a welcome development.

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