How to Respond to a CRA Letter Asking for Documents in Canada

A letter from the CRA asking for receipts or proof of your claims can be stressful, but it is a routine part of how tax returns are checked. What matters is reading it carefully and answering on time.

This article explains the deadline, what to send, how to submit it and what can happen if documents are not provided.

This article covers Canadian federal tax law, which applies in every province.

Read the letter and find the deadline

A formal requirement for documents or information under the Income Tax Act must stipulate a reasonable time for compliance in the notice, so it is mandatory and has a deadline. Find that date first and write it down.

Check which tax years and which items the letter covers. If you cannot meet the date, it is generally better to contact the CRA before it passes than to say nothing.

An authorized person may inspect, audit or examine books, records and property, may enter premises where a business is carried on or records are kept, and may require the owner or person in charge to give all reasonable assistance and answer proper questions. In a business audit, the auditor usually phones first, a confirmation letter follows, and the auditor will normally ask for electronic records before meeting.

What documents to send

Records requested in audits include ledgers, journals, invoices, receipts, contracts and bank statements. For rental income, keep detailed records with invoices, receipts and contracts. They are not filed with the return but must be kept in case the CRA asks, and unsupported expenses may be disallowed.

• Send what the letter asks for, matched to the specific claims it names.
• Label each document so it is clear which claim it supports.
• Keep a full copy of everything you send.
• Do not send originals unless the letter requires them.

Books and records must generally be kept for a minimum of six years, and computer-based records must be kept in an electronically readable format.

Records matter because indirect methods of verifying income are used where records may be unreliable, accounts are mixed, or lifestyle does not match reported income. Complete, organized records give the CRA less reason to look further.

How to submit safely

Use the method the letter describes. If a phone call about a business audit seems doubtful, you can hang up and call back to confirm the caller's identity, and a confirmation letter follows. If you are unsure about a letter, how to verify it depends on the situation, so it is worth confirming with a lawyer or accountant.

You may also choose a person to represent you and get advice on your tax affairs, but you remain legally responsible. Keep proof of how and when you sent your documents.

If the CRA visits in person, an on-site audit takes place at your residence, place of business or representative's office, and the auditor presents valid identification on arrival. There is an exception for a home: an auditor may enter a dwelling-house without the occupant's consent only under a warrant, which a judge may issue on the Minister's application on proof that entry is necessary and has been or is likely to be refused.

If you do not comply

If a person does not comply with an audit access, assistance, information or document requirement, a judge can on summary application by the Minister order compliance, and refusing the order can be found to be contempt of court.

There is an exception. A compliance order for information or documents is not available where they are protected by solicitor-client privilege. If you think a document is privileged, speak with a lawyer before deciding what to send.

Also, the Minister is not bound by a return or information you supply and may assess tax even if the information was inaccurate. Missing proof can therefore lead to a reassessment.

Delays can result if requested records are not provided or are hard to find. The CRA gives no fixed audit length; it depends on the condition of the records, the scope of the audit, and other factors, and good records and co-operation reduce the time. After an audit, the CRA's written proposal gives you 30 days to agree or disagree, which is CRA administrative practice rather than a statutory deadline. Before objecting formally, you can contact the auditor and, if that does not resolve it, the auditor's team leader.

What to do next

• Record the deadline and the tax years covered.
• Gather the receipts and records for each item named.
• Organize and label them, and copy everything.
• Send them by the method in the letter before the deadline.
• If you disagree with a later reassessment, note the objection deadline: an individual other than a trust must serve a notice of objection by the later of one year after the filing-due date and 90 days after the notice of assessment was sent, while other taxpayers have 90 days after the notice was sent.
• Talk to a lawyer or accountant if the request is broad, you cannot find records or privilege may apply.

Interest on unpaid tax runs at the prescribed rate for as long as it is outstanding; the rate is 7% for 1 October to 31 December 2026 and is set quarterly. The CRA may also cancel or waive penalties and interest under its taxpayer relief provisions. How this applies depends on your situation, so it is worth confirming with a lawyer or accountant.

Frequently asked questions