The purpose of a tax audit is to confirm that the taxpayer correctly reported his income, including whether he reported all his income. The scope of a tax audit is generally limited to one or more specific issue(s) or taxation year(s), although that may change, depending on what is uncovered during the audit (i.e. a decision may be made to expand the scope of the audit).
A tax audit starts with an initial communication from the Canada Revenue Agency informing the taxpayer that he is under audit. The audit generally takes place where the taxpayer is located (“on-site audit” or “field audit”), but can also be conducted at a CRA office (“office audit” or “desk audit”) when the issue involved is a simple one.
- How long does an audit last?
- How to prepare for an audit?
- How to deal with an audit?
- What happens at the end of an audit?
Last updated: October 14, 2016