CRA Tax Audit Risk Score Calculator — Canada

Common CRA audit triggers include: unreported income detected through third-party data (T-slips, real estate records), large charitable donations relative to income (CRA compares to peers), home office or vehicle deductions that appear excessive, business losses for multiple years (suggests hobby rather than commercial activity), large or unusual changes in income or deductions from prior years, information from informants, and CRA's risk-scoring algorithms that flag statistical outliers compared to similar taxpayers in the same industry and income range.

A CRA audit begins with a letter requesting documents or information. The most common type is a desk audit (review by correspondence). More serious cases result in a field audit where a CRA auditor visits your home or business. You have the right to a representative (accountant or tax lawyer). CRA will review receipts, bank records, and accounting records. If CRA proposes adjustments, you receive a proposal letter and have 30 days to respond. If unresolved, you can object or appeal to the Tax Court of Canada.

Yes. If you disagree with a CRA assessment, file a Notice of Objection within 90 days of the assessment date (or 1 year from the filing deadline, whichever is later). CRA's Appeals Division will independently review your case. If you disagree with the Appeals decision, you can appeal to the Tax Court of Canada (informal or general procedure). Tax lawyers with CRA dispute experience can significantly improve your position at the objection and appeal stages.