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Canada: CRA resumes tax audits (COVID-19)

Canada: CRA resumes tax audits (COVID-19)

The Canada Revenue Agency (CRA) announced it is resuming a full range of audit work and also is reaching out to taxpayers that have not adequately responded to information requests.


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Previously, the CRA temporarily suspended the majority of its tax audits in March 2020 in response to the coronavirus (COVID-19) pandemic.

The CRA is also making some adjustments to reflect the effects of COVID-19—including allowing options for taxpayers to send information via e-mail, as well as potential options for additional time and upfront consultation regarding CRA information and access requests.

Audit assessments to resume

According to the CRA, now that its audit work is resuming, the CRA is prioritizing activities that are beneficial to the taxpayer or in instances when taxpayers have indicated urgency in advancing their audits. The CRA noted that it is also initially focusing on:

  • Higher dollar audits
  • Audits close to completion
  • Strategically important audits for:
    • The government of Canada
    • Provinces and territories
    • Canadian tax treaty partners

Information requests

The CRA reported that it will begin to review cases when taxpayers were issued “Requirements for Information” prior to 16 March 2020, with information due after that date. Taxpayers and third parties, including financial institutions, will be contacted in instances when the CRA has not received adequate information.

Read a June 2020 report prepared by the KPMG member firm in Canada

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