When a taxpayer is being audited, there is an obligation to show that the self-assessment is correct. For example, the taxpayer will be asked to show that he or she has kept accurate records. However, there are also obligations on the CRA when conducting their audit; these obligations are subject to reasonable minimum standards. In other words, if we objectively look at the methods used by the auditor, did he or she reach a credible conclusion?

For example, the CRA has to perform tax audits that meet a minimum standard of reliability. The reasonable minimum standard allows a taxpayer to examine the methodology and conduct of an audit, i.e. what kind of data gathering tactics were used.

The reasonable minimum standard can be a powerful tool for a taxpayer who has received a reassessment based on an audit. One possible way to overturn a reassessment is to show the auditing methodology is flawed. So if you have been reassessed, you can contact a lawyer to find out if the auditing methodology is flawed. If so, the CRA may be forced to accept your original tax return filed.

NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only and is a general discussion of certain legal matters. It is not, and should not be taken as legal advice. You should not rely on or take or fail to take any action based on this information. If you require legal advice, we would be pleased to discuss resolutions to specific legal concerns you may have.