Revenue Canada: How to avoid a Canadian tax audit
The Canadian income tax deadline is just days away. Millions of
Canadians are scrambling this weekend to complete their taxes online or on paper.
Our federal and provincial tax systems depend on "self-assessment."
That means taxpayers are trusted to be honest in their reporting income
and deductible expenses, maintain accurate accounts, and keep those
receipts up to seven years afterwards. To ensure taxpayer honesty, however,
routine as well as ‘red flag' tax audits are regularly conducted on Canadian
individuals and companies.