In a typical audit, the CRA will first send a Questionnaire to the taxpayer seeking further information and clarification. The taxpayer will then generally (unless already working with a tax lawyer) fill out and sign that questionnaire, and provide CRA with what they believe are any supporting documents for their case.

A CRA reassessment is not the final word. As a taxpayer, you have the right to appeal your reassessment to CRA Appeals by filing a Notice of Objection. This is an early opportunity to set up your case for success at the Tax Court of Canada, so how you structure your appeal is going to be crucial.

The Tax Court is where taxpayers usually have some of the largest reductions in tax payable, yet the structure of your case at the outset can determine your success at Tax Court. Ultimately, the goal is to resolve your matter without needing to go to trial.

The CRA has a voluntary disclosure program, which allows you to fix mistakes before CRA conducts any audits or reassessments.