What to Do When CRA Contacts Your Business

Step 1: Confirm it's really CRA

Scams that impersonate CRA are common. Before you share anything or pay anything, confirm the contact is legitimate:

• Check your CRA online account. Most genuine CRA correspondence for businesses also appears in My Business Account or Represent a Client.
• Be cautious with unexpected calls, texts or emails. CRA doesn't demand immediate payment by gift card, prepaid card or cryptocurrency, and it doesn't threaten arrest.
• Call CRA back using the number on the official canada.ca website, not a number provided in the message.

If you're unsure, don't respond until you've verified it.

Step 2: Read the letter carefully and identify what it is

CRA contacts businesses for many reasons. Common types include:

• Requests for information or documents, such as receipts, invoices or contracts supporting an amount you claimed
• Processing reviews of a return before or after it's assessed
• GST/HST reviews, often related to input tax credits or refund claims
• Payroll reviews of remittances, taxable benefits or worker status
• Audits, which are more detailed examinations of your books and records
• Notices of assessment or reassessment that change your tax owing
• Collections notices about unpaid balances

Each has different stakes and different response options. Our article on CRA reviews vs. CRA audits explains the main differences.

Step 3: Note the deadline

Most CRA letters give you a specific date to respond. Mark it immediately. If you need more time to gather documents, contact CRA before the deadline to ask for an extension. Missing a deadline can lead CRA to make a decision based only on the information it already has, which often means a reassessment.

If you receive a notice of reassessment you disagree with, there are also strict time limits for filing a formal objection, generally 90 days from the date of the notice. That window is easy to miss.

Step 4: Gather what's asked for, and only that

Respond to the specific request. Provide organized, complete documents that answer the question CRA asked. Good practice includes:

• Sending clear copies, never originals
• Including a short cover letter listing what's enclosed and referencing the CRA file number
• Labelling documents so they match the items in CRA's request
• Keeping a copy of everything you send and a record of when and how you sent it

Well-kept records make this much easier. If finding documents is a scramble, it may be a sign your records need attention.

What not to do

• Don't ignore it. Problems rarely go away, and interest may keep growing.
• Don't guess or speculate. Answer factual questions accurately, and say so if you need to check something.
• Don't send more than requested without thinking about why. Extra material can raise new questions.
• Don't create or alter documents after the fact.
• Don't assume CRA is right. CRA can make mistakes, and you have the right to understand and challenge its decisions.

Your rights

The Taxpayer Bill of Rights sets out how CRA should treat you, including the right to be treated professionally and courteously, to receive clear information, to have your affairs reviewed impartially, and to be represented by a person of your choice. You can authorize an accountant to deal with CRA on your behalf.

When to get professional help

A simple request for one or two receipts is often something you can handle yourself. Consider professional support when:

• The request involves an audit or covers several years
• Significant amounts are at stake
• You've received a proposed adjustment or reassessment you disagree with
• The issue involves GST/HST, payroll, shareholder loans or worker status
• You're not sure what CRA is asking for or why

Common questions

This article is general information only and is not tax or legal advice for your specific situation. Refer to the Canada Revenue Agency for current guidance, including how to recognize scams.