In Canada, the Canada Revenue Agency (CRA) conducts various types of audits to ensure taxpayers comply with tax laws and regulations. These are just some of the common types of CRA audits in Canada. The specific type of audit conducted depends on various factors, including the taxpayer's circumstances, the nature of their income and transactions, and areas of potential risk identified by the CRA. Visit us https://www.sauconsulting.ca/our-services/taxdisputes

1. Guide to Different
Types of CRA Audits
in Canada

2. Introduction
In Canada, the Canada Revenue Agency (CRA) conducts
various types of audits to ensure taxpayers comply
with tax laws and regulations. These are just some of
the common types of CRA audits in Canada. The
specific type of audit conducted depends on various
factors, including the taxpayer's circumstances, the
nature of their income and transactions, and areas of
potential risk identified by the CRA.

3. 1.Income Tax Audit
This audit focuses on ensuring that individuals, businesses,
and other entities have accurately reported their income
and claimed deductions and credits in accordance with tax
laws.

4. 2. GST/HST Audit:
Goods and Services Tax (GST) and Harmonized
Sales Tax (HST) audits are conducted to verify
that businesses have correctly collected and
remitted GST/HST on taxable supplies and
claimed input SRED tax credits.

5. 3. Payroll Audit
This audit examines payroll records to ensure that
employers have accurately reported employment
income, withheld and remitted payroll deductions
(such as income tax, CPP, and EI), and complied
with employment standards.

6. 4. International
Tax Audit:
The CRA conducts audits to ensure
compliance with tax laws related to
international transactions, including
transfer pricing, foreign income
reporting, and foreign asset disclosure
requirements.
CRA

7. 5. SR&ED Audit:
This audit focuses on verifying SRED claims in Canada for
tax incentives related to scientific research and
experimental development activities undertaken by
businesses.

8. In a net worth audit, the CRA examines a
taxpayer's assets and liabilities over a period
to determine if reported income is
consistent with their financial position.
6. Net Worth Audit

9. 7. Information Technology
(IT) Audit:
This audit assesses the accuracy and reliability of electronic records
and systems used for tax reporting purposes.

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