One unadvised reply to CRA can expand an audit, trigger new assessments, or waive rights you didn't know you had. We handle every word — so you don't have to.
CRA correspondence has hard deadlines. Missing them removes your ability to dispute, object, or negotiate. Do these three things before anything else.
Read the letter in full and note the response deadline. Then stop. Every response to CRA becomes part of your file and can be used to expand the scope of an audit. An unadvised response — even a cooperative one — often creates problems that didn't previously exist.
CRA correspondence ranges from a simple matching notice to a full field audit. The letter will indicate what's being reviewed and what documents are requested. The type of review determines how urgently you need professional help — and what strategy applies. Bring the letter to your consultation.
Swift Accounting offers same-day consultations for clients with active CRA correspondence. We review your letter, assess the risk, explain exactly what CRA is looking for, and take over all communication from that point forward. You focus on your business — we handle CRA.
Not all CRA contact is equal — but all of it requires careful handling. Here's what each type means and what's at stake.
CRA's automated system has flagged a discrepancy between your return and a third-party slip (T4, T5, T3, etc.) or a mathematical error. Often resolved with a single document submission — but the response must be accurate and complete. An incorrect correction can trigger a deeper review.
CRA is reviewing one or more specific claims on your return — commonly home office, vehicle expenses, charitable donations, rental deductions, or business expenses. You're asked to provide documentation by mail or online. This is the most common type of audit for individuals and small businesses. What you submit determines the outcome.
A CRA auditor visits your business premises or your accountant's office to review your books directly. Field audits cover multiple years and often multiple issues simultaneously. They are time-consuming, invasive, and carry the highest risk of reassessment. Professional representation is not optional — it's essential. Every document you show a CRA auditor should be reviewed by a professional first.
CRA has completed its review and issued a reassessment — meaning they've added tax, penalties, and interest to what you originally owed. You have 90 days from the date of the notice to file a formal Notice of Objection. Missing this deadline eliminates your right to dispute the reassessment through CRA's internal process. Swift Accounting handles objections and appeals, including Tax Court filings.
CRA audits GST/HST accounts separately from income tax. These reviews focus on input tax credits, taxable vs. exempt supplies, and the accuracy of your remittances. Calgary businesses in real estate, construction, and professional services are commonly targeted. A GST audit can cover up to four years and result in significant reassessments plus 6% annual interest on any balance owing.
If you have unreported income, unfiled returns, or inaccurate filings from prior years, the CRA Voluntary Disclosures Program allows you to come forward proactively — before CRA finds the issue — in exchange for penalty relief and reduced interest. Once CRA contacts you about an issue, VDP eligibility ends. Swift Accounting helps clients file before that window closes. See our full guide to the CRA Voluntary Disclosures Program.
Some audits are random. Many are not. These are the most common triggers CRA uses to select files for review in Alberta — particularly for Calgary small business owners.
High expense-to-revenue ratioClaiming expenses that represent an unusually high percentage of gross income compared to industry benchmarks. CRA has norms for every industry — if you're an outlier, you're a target.
Vehicle and home office deductionsThese are the most commonly audited personal deductions. CRA expects mileage logs, business-use percentages, and documentation that matches what was claimed. Most self-filers lack adequate support.
Rental property losses claimed repeatedlyConsistent annual losses on rental properties raise a red flag — CRA questions whether the activity has a reasonable expectation of profit. CCA claims that create artificial losses are frequently audited.
Shareholder loans outstanding at year-endA shareholder loan that isn't repaid or offset within one year of the corporation's tax year-end becomes taxable income to the shareholder. CRA specifically watches for unresolved shareholder loans in T2 returns.
Cash-intensive businessesRestaurants, contractors, and retail — businesses where cash transactions are common — are perennial CRA audit targets. CRA uses net worth auditing to compare your reported income to your lifestyle and spending.
GST/HST input tax credits inconsistent with industryClaiming more GST back than businesses of your size and type typically recover signals that ITCs may be overclaimed or that taxable/exempt supplies are misclassified.
Real estate transactionsProperty dispositions — especially multiple in a short period — trigger CRA's property flipping review protocol. CRA cross-references land title registries with T1 and T2 returns to identify unreported gains. See our real estate tax guide for Calgary investors.
Third-party informationCRA receives data from employers, financial institutions, and other government agencies. If a T-slip from a third party doesn't match what you reported, an automated notice is triggered. These are often the easiest audits to resolve — but only with proper documentation.
We take over immediately and manage every stage of the process — from the initial letter to the final resolution. You won't speak to CRA unless we advise you to.
We review your CRA letter, your original return, and your financial records. We tell you exactly what CRA is looking for, what the realistic exposure is, and what our recommended strategy is — on the first call.
We gather, organize, and review every document before it goes to CRA. Anything that could create additional exposure is identified and handled proactively. We never send documents we haven't reviewed in full.
All correspondence, calls, and meetings with CRA are handled by Swift Accounting on your behalf. We are your authorized representative. You don't speak to CRA — we do. Every response is reviewed internally before submission.
If CRA proposes an adjustment, we review their position and challenge any item that isn't fully supported. CRA's initial assessments often include disallowances that are successfully reversed with proper documentation and professional advocacy.
If the result is unsatisfactory, we file a formal Notice of Objection within CRA, or escalate to the Tax Court of Canada if warranted. Our goal is always the best achievable outcome — not just a fast resolution.
Response deadlines are firm. Missing one removes your right to object. Call Swift Accounting today — we offer same-day consultations for active CRA files.
| Stage | What Happens | Typical Duration | Key Deadline |
|---|---|---|---|
| Initial CRA letter received | CRA requests information or documents. You have a response deadline. | Day 1 | 30 days to respond (typically) |
| Response submitted | Swift Accounting prepares and submits your full documentation package. | Days 7–21 | Before response deadline |
| CRA review period | CRA reviews your documents and may request additional items. | 4–12 weeks | Ongoing — we monitor |
| Proposed adjustment (if any) | CRA may propose changes before issuing a formal reassessment. This is the key negotiation window. | 1–4 weeks | Respond within 30 days |
| Notice of Reassessment (if issued) | CRA issues a formal reassessment with additional tax, penalties, and interest. | Following review | 90 days to file objection |
| Notice of Objection filed | Swift files a formal objection on your behalf. CRA's Appeals Division reviews independently. | 6–18 months | Within 90 days of reassessment |
| Resolution or Tax Court | Objection resolved or escalated to Tax Court of Canada if result is unsatisfactory. | Variable | Within 90 days of objection decision |
The best CRA audit is the one that never happens. Most of the audits we handle were preventable with proper filing and year-round tax planning. Swift Accounting offers both.
CRA targets returns with unusual patterns. Our proactive tax planning service ensures your filings are defensible before they're submitted — not corrected after CRA flags them.
Most CRA business audits focus on shareholder loans, GST, and deduction claims. Our T2 corporate tax service files defensively — documentation-ready from day one.
The fastest way to resolve a CRA audit is with organized records. Our Calgary bookkeeping service keeps your file audit-ready year-round — not scrambled together in March.
Every day you delay is a day closer to a missed deadline, an expanded audit scope, or an unadvised response that makes things worse. Call Swift Accounting now — we handle CRA so you don't have to.
Same-day response · Flat-rate fee in writing · 15+ years of CRA representation · Calgary-based tax professionals