How Far Back Does CRA Audit: A Comprehensive Guide

Income tax auditing is a term that sends a chill down the spine of many taxpayers, but understanding the process helps eliminate the fear factor. When you know file reviews and auditing are part and parcel of the Canada Revenue Agency's (CRA) operations, you can be better prepared if you're selected. So, just how far back does the CRA audit? This article will provide you with all the details you need.

Canada Revenue Agency's Audit Timeline

CRA has the authority to audit your tax records, going back as far as they deem necessary. However, the general practice is to audit the records for the last six years. In certain cases, such as suspected fraud or misrepresentation, they can go beyond this normal timeframe. It's important to retain and organize your tax records for at least six years to fall in line with this standard.

Initiating the Audit Process

CRA might contact you through mail, phone, or even visit your premises to inform about a selected audit. The agency checks for tax compliance, focusing on areas like income reporting, tax credits or deductions claimed, or GST/HST remittance for businesses.

Accessing Audit Help via CRA's Website

CRA's website (https://www.canada.ca/en/revenue-agency.html) is a rich resource to help taxpayers understand the audit process. It provides comprehensive, easy-to-understand information about what an audit is, how to prepare for it, and your rights and responsibilities. You can also lodge disputes or complaints online if you disagree with an audit's outcome.

Navigating CRA's Mobile App

'MyCRA' is a user-friendly mobile application provided by CRA. You can manage your tax affairs over your smartphone. You can secure your notice of assessment, tax return status, and even updates on your audit through the app. For more complex queries related to audits, you could connect with tax professionals or CRA representatives right from the app.

Using CRA's Call Centre

If digital platforms are not your forte, CRA's call centre is a reliable, well-staffed helpline that can provide you with audit-related information and guidance. Available in English and French, the helpline staff can answer your queries or direct them to appropriate personnel if necessary.

Conclusion

Understanding CRA's audit process and knowing how to access assistance are pivotal to ease compliance. Whether you choose the CRA's website, MyCRA mobile app, or call centre, remember that having your records organized could help expedite the process. Being knowledgeable and prepared will help take the sting out of the term 'audit.'