CRA Tax Audit Triggers and How to Handle an Audit

An audit is when CRA examines your tax return, records, and supporting documents to
verify compliance with tax laws.
Common Audit Triggers include:

• Discrepancies with third‑party data (T4s, T5s)
• Large or unusual expenses
• Consistently claiming losses
• Claiming personal expenses as business
• Rounded amounts or high cash transactions
• Frequent late filings or real estate transactions

How CRA Conducts an Audit:

• CRA uses risk assessment systems to flag returns.
• They may request documentation and conduct desk or field audits.
• CRA must give notice and opportunity to respond.
  How to Handle an Audit:
  Be calm, responsive, and organized. Provide requested documents only. Seek professional
  representation if needed.

How eFile CRA Tax can help:
We analyze your situation, prepare documentation, represent you with CRA, and manage
appeals if necessary.