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Tax Audits & Reviews
At Forge Accounting & Management Services, we take every step to minimize the chances of your tax return being reviewed by the CRA. Our team will guide you through the entire process, explaining the reasons behind CRA Reviews and Tax Audits, ensuring that you understand each step while keeping your tax filings compliant and accurate.
Types of Reviews:
Pre-assessment Review Program:
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The CRA reviews the deductions and credits claimed before issuing a Notice of Assessment or refund.
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This review is designed to catch errors early and prevent unnecessary refunds or underpayments.
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Peak period: February to July.
Processing Review Program:
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The CRA reviews the deductions and credits after issuing a Notice of Assessment or refund.
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This review ensures that any claims made on your return are accurate and complete, even after your assessment has been processed.
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Peak period: June to November.
Matching Program:
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The CRA compares the information on your tax return to data provided by third parties (e.g., employers, financial institutions).
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Areas of focus for the CRA in this program include:
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Verification of employment income
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Investment income
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Canada Child Benefit (CCB)
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Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit
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Guaranteed Income Supplement (GIS)
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Registered Retirement Savings Plan (RRSP) deduction limit
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Spousal-related claims, including child-care expenses, provincial tax credits, and provincial tax reductions.
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Peak period: September to March.
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Common Reasons That Trigger Tax Return Reviews by the CRA:
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Failure to respond to a request by the CRA for information within the time specified.
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Failure to notify the CRA of mailing address changes; a high percentage of taxpayers involved are students.
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Failure to provide all required information slips and/or information slips referred to on the taxpayer’s tax return.
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Failure to make a complete and accurate disclosure of retiring allowances (separation pay) received or transferred to a Registered Retirement Savings Plan (RRSP).
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Failure to follow the rules that govern Registered Retirement Savings Plan (RRSP) deductions…to provide official receipts for amounts contributed (for paper tax returns) and a completed and filed Schedule 7 “Registered Retirement Savings Plan (RRSP) Unused Contributions, Transfers, and Home Buyer’s Plan (HBP) or Lifelong Learning Plan (LLP) Activities” for amounts contributed.
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Issues with Sub Contractor vs. Employment- determining if you are a sole proprietor or if you should have been an employee and should have been issued a T2200 form from your employer- This is very big in the Northern BC and Alberta area and Oil and Gas
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Inappropriate claim for Annual Union, Professional, or Like Dues.
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Inappropriate claim for Moving Expenses.
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Inappropriate claim for Support Payments made.
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Inappropriate claim for Northern Residents Deductions.
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Inappropriate claim for eligible dependant amount.
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Inappropriate claim for infirm dependent 18 years of age or older amount.
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Inappropriate claim for caregiver amount.
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Inappropriate claim for interest paid on a student loan.
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Inappropriate claim for tuition fees.
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Inappropriate claim for Education and Textbook amounts.
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Inappropriate claim for transferring of Tuition, Education, and Textbook amounts.
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Inappropriate claim for Medical Expenses.
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Inappropriate claim for Public Transit amount.
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Inappropriate claim for Federal Foreign Tax Credit amount.Federal Foreign Tax Credit.
Ready to take the stress out of tax season? At Forge Accounting & Management Services, we’re here to ensure your taxes are done right, minimize any risk of CRA reviews, and maximize your returns. Whether you have questions or need expert guidance, our team is ready to help.
Book a consultation today and let us handle the details, so you can focus on what matters most.