Rising CRA Scrutiny: Four Audit Hot Spots Canadians Should Watch
Canadian taxpayers and business owners are facing a period of heightened enforcement as the Canada Revenue Agency (CRA) expands its audit activity. Recent shifts show a clear pattern: the CRA is leaning more heavily on data matching, AI‑driven analytics, and strengthened legislative powers to identify inconsistencies and pursue non‑compliance. Four areas, in particular, are drawing increased attention. 1. Inconsistent Revenue Reporting The CRA is closely comparing GST/HST filings with corporate income tax returns, and mismatches are one of the fastest triggers for an audit. When sales reported for GST/HST don’t align with income tax filings, the CRA flags the discrepancy for review. 2. Expense Claims That Don’t Match Business Activity Expense claims that appear unusually high relative to revenue are under sharper scrutiny. The CRA is using benchmarking tools to compare businesses within the same industry, making outlier claims more visible than ever. 3. Capital Gains R...
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