An overview of how tax audits work and who will likely be
targeted. This article is part of a two-part series.
It appears that tax audits are on the rise around the world and
Canada is no exception.
In 2008, during the financial crisis, governments were cutting
taxes in an effort to revive the global economy. Now, more than
ever before, tax authorities around the globe are collaborating
with one another. Tax authorities including the Canada Revenue
Agency ("CRA") are placing greater scrutiny on taxpayers
in an effort to recover lost tax revenues.
Since tax audits are coming, what can you do to avoid them?
1. Keep complete books and records
Canadian tax laws generally require taxpayers to keep complete
books and records for at least six years from the end of the year
to which they relate. Not all CRA notices represent comprehensive
tax audits. Some notices simply request additional information to
corroborate specific information already reported on your
