Canada: Audit

From 2020 to 2025, the Canada Revenue Agency (CRA) has significantly increased the use of administrative penalties as a core enforcement tool.

The Canada Revenue Agency (CRA) has expansive powers to enforce compliance with the Income Tax Act, notably through Section 231.2, which allows the agency to demand documents or information from individuals or entities during a tax audit.

Subsection 231.1(1) of the Income Tax Act (ITA) outlines the powers of CRA during a tax audit or examination. Before the legislative changes in 2022, the text read as follows...

Over the past few years, federal employers with 10 or more employees have been engaged in the important but time-consuming process of developing their initial pay equity plan as required by the new Pay Equity Act (the "Act").

Les contribuables peuvent facilement commettre des erreurs en naviguant dans un différent en matière de prix de transfert s'ils n'ont pas examiné...

Le printemps est généralement une saison chargée pour de nombreux organismes à but non lucratif (les « OBNL ») dont l'année financière se termine en décembre ou en mars. C'est le moment pour les organismes de fermer leurs livres, de clôturer leurs états financiers de fin d'année et de rédiger les rapports financiers à l'intention des membres et autres parties prenantes

Selling a business is a significant milestone representing the culmination of years of hard work, dedication, and growth. It requires careful planning and preparation to ensure a smooth transition

A routine loss carryover claim could trigger a tax audit. This is especially so, where the taxpayer is not aware of the relevant considerations of the CRA with respect to such claims.

New proposals to expand the audit powers of the Canada Revenue Agency (CRA) under the Income Tax Act could significantly raise the risk that Canadian taxpayers...