Plain meaning
A review by the CRA or another tax authority to verify reported amounts, filings, records, or compliance with tax obligations.
Also called
field audit
desk audit
CRA audit
Key points
- An audit can focus on a specific issue or review broader books and records.
- A desk review is usually narrower and document-based; a field audit can involve deeper examination of records and business activity.
- Taxpayers generally need to provide books, records, explanations, and supporting documents.
- An audit can result in no change, a reassessment, penalties, referrals, or further dispute steps.
Why it comes up
Audits can affect reassessments, penalties, interest, refunds, GST/HST credits, payroll obligations, and litigation risk.