Canada Revenue Agency

Canada Revenue Agency

April 08, 2009 13:00 ET

CRA: Keep Your Records to Support Your Income Tax and Benefit Return

OTTAWA, ONTARIO--(Marketwire - April 8, 2009) - Canadians who plan to file their income tax and benefit returns electronically, or who do not file information slips and receipts with their paper-filed return, should keep their tax records on hand in case they are contacted by the Canada Revenue Agency (CRA).

After returns are filed, the CRA begins work to verify the income reported, as well as the credits and deductions claimed. These reviews are an important way that the CRA makes sure that Canadians are paying their taxes. For the 2007 tax year, about 2.8 million individual returns were reviewed and an extra $889 million in tax was assessed by the CRA.

Some of the first reviews of deductions and credits are done when returns are filed, and before taxpayers receive their notice of assessment. However, most reviews take place later in the year, as the CRA works to verify the information on an individual's return and compare it with the information provided by other parties, such as an employer, a spouse, or a common-law partner.

During this review process, the CRA may contact taxpayers to ask for more information on income sources or dependants, and may ask for copies of receipts or information slips to support claims, related to:

- medical expenses

- charitable donations

- child care expenses

- spouse or child support payments

- moving expenses

Keeping your records on hand makes it easier to respond to these requests, and will help you explain your tax and benefit situation to the CRA if you do not agree with your reassessment.

Receiving a request for receipts or documentation does not mean you are being audited by the CRA. When an individual is selected for an audit, the CRA tells them that their tax and benefit situation is being reviewed and calls to arrange a meeting to begin the audit.

For more information about reviews of returns by the CRA, go to www.cra.gc.ca/reviews.

Contact Information

  • Canada Revenue Agency
    Media Relations
    Noel Carisse
    613-952-9184