CRA Audit Support
Getting a letter from the CRA is stressful. Whether it is a simple document request, a formal review, or a full audit, the way you respond matters. Taxwala handles CRA audits and disputes for individuals and businesses across Canada, helping you understand what is being asked and guiding you through every step of the process.
Not every letter from the CRA means you did something wrong. Sometimes they simply want documentation to verify a claim you made. Other times it is a more serious review or audit that requires a formal response with supporting records. Either way, responding incorrectly or incompletely can make the situation worse. Having an experienced tax professional handle the communication for you is almost always the right call.
Taxwala has extensive experience dealing with the CRA on behalf of clients. We know how audits work, what the CRA is looking for, how to gather and present documentation effectively, and how to push back when an assessment is wrong. Whether you are just getting started with a CRA inquiry or you are already in the middle of a dispute, we can step in and take it from here.
Service For
CRA audits and reviews can happen to anyone. Here is a breakdown of the situations we help clients navigate most often.
The CRA regularly sends out review letters asking individuals to verify specific claims on their return, such as medical expenses, charitable donations, home office deductions, or moving expenses. These are not full audits, but they require a timely and well-documented response. We prepare your response and handle the submission on your behalf.
Self-employed individuals and business owners are audited more frequently than employees. Business expenses, vehicle deductions, home office claims, and HST accounts are all common audit triggers. We pull together the documentation, respond to CRA requests, and represent you throughout the process.
If the CRA has reassessed your return and increased your tax owing, you have the right to object. The objection process has strict deadlines and specific procedural requirements. We file your Notice of Objection, build your case with supporting evidence, and work to get the reassessment reversed or reduced.
HST audits and payroll audits are among the most common types of business audits in Canada. They often involve a detailed review of transaction records, employee classification, and remittance history. We manage the entire audit process, liaise with the CRA auditor, and make sure your records are presented clearly and completely.
If you have unfiled returns and the CRA has reached out or filed returns on your behalf using estimated income, the amounts they assessed are almost certainly wrong. We get your actual returns filed, dispute the CRA-filed amounts, and work to resolve the outstanding balance in a way that reflects your real tax situation.
Sometimes people are not sure whether what they received is serious or routine. If you got something from the CRA and do not know what to make of it, reach out to Taxwala. We review the correspondence, explain exactly what it means, and tell you what your options are. There is no obligation to proceed further.
Service Features
Our Process
01
Send us what you received from the CRA and we will review it carefully. We identify what type of review or audit it is, what the CRA is asking for, and what deadlines apply. We explain everything clearly so you know exactly where things stand.
02
We look at your original return, the claims being questioned, and the records you have available. We assess how strong your position is and lay out the options available to you honestly, including what the likely outcomes are.
03
We work with you to pull together every relevant document the CRA is asking for. Receipts, bank statements, contracts, mileage logs, invoices, whatever applies to your situation. We organize it clearly so the CRA auditor can follow it without any ambiguity.
04
We prepare the formal response on your behalf and submit it directly to the CRA. We handle all communication from this point forward so you do not have to deal with the CRA directly unless absolutely necessary.
05
We stay with you until the matter is fully resolved. Whether that means a simple file closure, a successful objection, a negotiated settlement, or a payment arrangement, we see it through to the end and make sure you understand the outcome.
The CRA has broad authority to review any tax return filed in Canada. Most audits are triggered by specific risk indicators rather than random selection. Large or unusual deductions, inconsistencies between reported income and lifestyle, significant year-over-year changes, or activity in industries the CRA considers higher risk can all increase the likelihood of a review.
Being selected for an audit does not mean you are suspected of fraud. Most audits are routine compliance checks. The key is responding correctly, on time, and with proper documentation. A poorly handled audit can result in a larger assessment than necessary, penalties for non-cooperation, or an escalation to a more serious review. Taxwala makes sure none of that happens. We handle the process professionally, protect your rights as a taxpayer, and work toward the best possible outcome for your situation.
faq
A CRA review, often called a matching or processing review, is typically a request to verify a specific claim on your return. It is less intensive than a full audit and usually just requires you to send in supporting documents. A full audit involves a more thorough examination of your records and financial situation, often going back multiple years. Both require careful handling.
It depends on the type and complexity of the audit. A simple desk review can be resolved in a few weeks if you respond quickly with the right documentation. A full field audit can take several months or longer. Taxwala works to move things along as efficiently as possible and keeps you informed at every stage.
Ignoring CRA correspondence is one of the worst things you can do. The CRA will proceed without your input, which almost always results in a larger assessment than if you had responded. Deadlines pass, penalties accumulate, and the CRA has the authority to take collection action including garnishing wages or freezing bank accounts. If you have received something from the CRA, contact Taxwala right away.
Yes. If you have received a Notice of Reassessment that you disagree with, you have 90 days to file a Notice of Objection. This is a formal dispute process that can result in the reassessment being reduced or reversed. We handle the entire objection process on your behalf.
Voluntary disclosure, or the Voluntary Disclosures Program (VDP), allows taxpayers to come forward and correct previously unreported income or errors before the CRA finds them on their own. In most cases, voluntary disclosure results in reduced or waived penalties. If you have unreported income or errors in past returns, this program is worth exploring. We assess your situation and advise whether VDP is the right approach.
The cost depends on the complexity of your situation. A simple document review response is priced differently from representing a client through a full corporate audit. We give you a clear quote after reviewing your CRA correspondence so you know exactly what to expect before we proceed.
We help you understand what the CRA is requesting, identify the deadlines, and prepare a clear response. Request a free consultation to discuss your situation.