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.
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:
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
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.