Tax rules, thresholds and administrative procedures can change. Confirm current official requirements and obtain advice for material transactions or unusual facts.
A review letter is not automatically an audit
CRA may request documents supporting one or more items after a return is assessed. The letter normally identifies the line, amount, documents requested, deadline and submission method. Read it completely before gathering records.
Build an issue table
Create a table with four columns: CRA question, amount claimed, document supporting it and explanation. This prevents a large unlabelled document upload and shows whether any claimed amount lacks support.
Example: employment expenses
CRA asks for support for $8,400 of employment expenses. The taxpayer prepares:
- the signed T2200;
- a schedule reconciling each expense category to the return;
- receipts;
- employer reimbursements;
- a vehicle log and kilometre calculation; and
- a short explanation of employment duties.
The cover letter follows CRA's questions in the same order and identifies any item that was entered incorrectly.
Do not alter or manufacture records
A recreated summary can explain existing evidence but should not be presented as a contemporaneous log if it was prepared later. False receipts or backdated documents can create serious penalties. Where records are incomplete, explain the limitation honestly and provide the best available third-party evidence.
Submit securely and keep proof
Use the method identified by CRA, retain the confirmation number and save the exact package submitted. Do not email sensitive records to an address that has not been independently verified.
After the response
Monitor the CRA account and mail. If CRA changes the return, compare the reassessment with the submitted explanation. Note the objection deadline immediately. Payment and dispute rights are separate issues, so review interest and collection consequences while the matter is being resolved.
This article provides general Canadian tax information and is not a substitute for tax, legal, financial or investment advice based on complete circumstances.