It is important to respond promptly. Respond to the CRA within the specified time frame, usually 30 days from the date of the letter. If the CRA doesn’t receive a response within that time, they’ll adjust your claim based on the information they have, which may not be in your favour. When you respond, include the reference number for your case, indicated on the letter or notice you received, so the CRA can quickly match the additional information you give them to your tax return.

After you are in contact with the auditor, take a systematic approach to answer requests while maintaining an appropriate attitude towards the audit will help to reduce the pain of the process. The auditor will provide a reasonably detailed list of things they want to be made available for them at, or prior, to the audit. It is wise to supply all information necessary to clear up any problems; this may entail including any additional information or supporting documents to make it as easy as possible for the CRA to review. If you’re missing back-up documents, include an explanation as to why. Whatever you do, don’t ignore the CRA’s request.

It is best to remain as helpful as possible with the auditor. The audit will proceed regardless of whether you intend to slow down the process; any attempt to do so will only reflect poorly of the result.

If, after compiling your books and records, you feel they are incomplete, there are gray-areas, or you think that somebody has made a mistake on your documents, it may be time to seek professional advice. If you feel your situation will warrant a professional, earlier is always best.

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.