Audit Fun Facts

Did you know?

• Being audited by CRA does not mean that an individual will not be audited in the next year. Where CRA obtains additional tax as a result of an audit, the likelihood of a follow-up audit is generally increased.

• It is possible for the CRA, and other similar bodies, to use social media to identify taxpayers for audits, or even to use as evidence against the taxpayer in the course of a reassessment. What might you post that would place you at risk of audit? Boasting about the creation of large balances in a TFSA, for example. If the CRA believes that an individual is carrying on an equity trading business within the TFSA account, they may challenge the tax-free status of the account.

• Repeatedly filing your returns late, even if you don’t owe tax, could make CRA curious…