An income tax review is easier than you think! Since Canada’s tax system is based on self-assessment, these reviews help confirm that income amounts, deductions, and credits are reported correctly, and can be properly supported.
It is OK.
If you receive a letter from the Canada Revenue Agency (CRA) telling you that your income tax return is being reviewed, do not panic. A review is not a tax audit. In most cases, it is simply a routine check to ensure that the information you provided on your return is correct.
We are here to help.
It is important that you reply and send all the information requested as soon as possible. This will help the CRA review your file quickly and efficiently.
You are not alone. The CRA reviews about 3 million income tax returns every year to make sure income amounts, deductions, and credits are reported correctly, and can be properly supported.
The process of selecting returns for review is the same whether the return is filed on paper or electronically. Therefore, the chances of a return being selected for review are not impacted by the method used to file the return. The CRA refines the focus of their reviews annually based on review results and problem areas identified.
Can not get the documents the CRA is asking for?
As indicated in the General Income Tax and Benefit Guide, you should keep all receipts and documents to support your claims for at least six years in case you are selected for review. If the CRA does ask for documents or receipts and you can not provide them, let the CRA know and they will help you find an alternative.
Need more time to respond?
If you are running late or can not get the documents requested by the due date, let the CRA know right away at the number provided in your letter to let them know you need more time.
If you would like more information on various programs, deductions and credits that can help save you and your family money, contact GB Pilley & Associates Ltd., Chartered Professional Accountants at 604 926 3522.