Question 1
Over the past 3 years, the CRA has increased its audit activity.

■ No: 18

■ Somewhat: 83 

■ Yes: 363

Question 2
Did the CRA ask for more information than before, such as personal banking information of owners and family members?

■ No: 139

■ Somewhat: 80 

■ Yes: 245

Question 3
In the course of the audits, did the CRA request an interview with the owner?

■ No: 159

■ Sometimes: 174

■ Often: 131

Question 4
Were the audit results fair and appropriate on balance?Copyright, Cadesky Tax

■ Yes, a fair outcome: 109

■ Somewhat: 230

■ No, not a fair outcome: 125

Question 5
Was the CRA efficient and concluded the audit in a timely fashion?

■ Yes: 34

■ Somewhat: 111

■ Definitely not: 319

Question 6
Was CRA open to discussion and listening to taxpayer positions?

■ Yes: 74

■ Somewhat: 252

■ No: 138

Question 7
Did the taxpayer accept the results of the audit?Copyright, Cadesky Tax

■ Yes: 159

■ No, but did not object: 123

■ No, filed Notice of Objection: 182

Question 8
In your view, was CRA right to conduct the audit?Copyright, Cadesky Tax

■ Yes: 79

■ Somewhat: 257

■ No: 128

Question 9
Was the professional time spent and the fees charged consistent with the scope and nature of the audit?

■ Yes: 78

■ Somewhat: 98

■ No, time and cost were excessive: 288

Question 10
Was the audit focused and limited to a particular area?Copyright, Cadesky Tax

■ Yes: 235

■ Somewhat: 138

■ No: 91

Question 11
Did CRA levy penalties unfairly?Copyright, Cadesky Tax Seminars

■ Yes: 176

■ No: 288

Question 12
Did CRA reassess a statute barred year unfairly?Copyright, Cadesky Tax Seminars

■ Yes: 90

■ No: 374

Question 13
Overall, was the process fair and reasonable?Copyright, Cadesky Tax

■ Yes: 48

■ Somewhat: 267

■ No: 149

Question 14
Was the audit triggered for any particular reason, or just random?

■ Don't know: 48

■ Random: 267

■ Other: 149

Question 14: Analysis


Based on CPA responses about specific audit triggers (excluding random audits), clear patterns emerge in what prompts CRA audit activity.

Large refunds represent the most common trigger at 27 mentions (15.6%), followed closely by foreign tax credits and loss/expense issues, each with 23 mentions (13.3%). HST/GST issues triggered 20 audits (11.6%), while adjustments/amendments to returns prompted 19 audits (11.0%). Other significant triggers included net worth analysis and late filing (14 mentions each, 8.1%), corporate reorganizations (11 mentions, 6.4%), and sale of business/assets (12 mentions, 6.9%).

When grouped by type, financial red flags (large refunds, foreign tax credits, and loss/expense issues) accounted for 35.4% of all triggers, making them the dominant category. Tax compliance issues (HST/GST problems, late filing, poor compliance) represented 19.4% of triggers, while analytical reviews (net worth analysis, amendments) comprised 16.0%. Business transactions (sales, reorganizations) and other specific triggers (payroll, trust issues, specific deductions) made up the remaining 29.2%.

The data reveals that CRA audit selection is heavily influenced by financial anomalies and compliance red flags, with large refunds and foreign tax credits being particularly scrutinized, suggesting a risk-based approach focused on transactions that could indicate tax avoidance or errors.

Question 15: Analysis

Do you have any comments you would like to share?

Based on the responses, significant concerns emerge about current CRA audit practices. The most prevalent issue is excessive response times and delays, mentioned by 35 respondents (23.8%), with audits frequently taking months or years to complete.

High professional costs and time burden ranked second with 22 mentions (15.0%), as practitioners report disproportionate billable hours consumed by audit responses.

System and process problems affected 19 respondents (12.9%), including portal access issues and communication breakdowns.

Auditor competence emerged as another key concern, with 14 total mentions citing inexperienced staff requiring training from practitioners and poor understanding of accounting principles.

Additional issues included excessive documentation requests (11 mentions), unfair or biased treatment (9 mentions), and frequent repeated audits of the same clients (7 mentions).

However, 26 respondents (17.7%) reported positive experiences with reasonable, knowledgeable auditors and fair processes.

Notably, 42.1% of responses mentioned multiple issue types, indicating that audit problems often compound together rather than occurring in isolation.

Overall sentiment analysis reveals 66.0% negative feedback, 12.9% positive, and 21.1% neutral, suggesting systemic inconsistencies in CRA audit quality and approach across different offices and staff members, with significant frustration among practitioners despite some positive experiences.