Tax Audit Process
We carry out two complementary types of tax audits:
- remote audits, conducted in our offices; and
- in-person audits, conducted at your place of business.
Every auditor is required to follow procedure if he or she decides to conduct an audit at you place of business. There are several steps to such an audit.
The audit procedure may differ depending on your situation.
- An auditor will contact you to clearly introduce him or herself.
- The auditor will tell you which years or periods are covered by the audit.
- The auditor will request the information and documents he or she needs to carry out the audit. The auditor may use your electronic files.
- The auditor will schedule a meeting with you and confirm the date in writing. The written confirmation will include the contact information of the auditor and the auditor's manager.
- The auditor will inform you of your rights and obligations, and give you brochure COM-366-V, Your Rights and Obligations During a Tax Audit.
- The auditor will give you an estimated timeframe for the audit.
- The auditor will make a preliminary list of the items to be examined and will make sure you understand the scope of the audit.
- The auditor will keep you informed of the progress of the audit and will notify you if the audit must be extended.
- The auditor will complete the audit as quickly as possible.
- If applicable, the auditor will give you a draft assessment and complementary documents. He or she will then explain the proposed amendments and answer any questions you may have.
- You will be given 21 days to provide any new information to the auditor that could affect the draft assessment, after which the auditor will examine the new information and make any necessary adjustments, including any refunds.
- The auditor will notify you once your file has been closed. If he or she discovered any anomalies, recommendations will be made regarding changes to be made in the future.
- The auditor will give you information about your options for recourse.
Auditors are authorized by the Minister to exercise the powers and carry out the duties for audits and examinations as provided for in the Tax Administration Act. They are also authorized by the Minister to exercise the powers and carry out the duties for audits, examinations and inspections as provided for under the Excise Tax Act and the Tax Administration Act.
Auditors must introduce themselves and, upon request, produce a document signed by the Minister attesting their authority.