The Canada Revenue Agency (CRA) has now advanced to the next stage of categorizing large corporations in implementing its new risk assessment approach of selecting files for audit.
In the fall of 2011, the CRA announced that it had selected 50 of the approximately 1,100 large corporations to be “risk assessed.” No details were provided as to how those 50 corporations were chosen.
Several have received a letter from the CRA requesting an interview with the corporation’s CEO, CFO and/or Tax Director. The purpose of the interview is to:
Each large corporation will be subject to a CRA risk assessment. Therefore, these initial CRA communications can help corporate management prepare responses for its CRA interview.
In October 2010, we outlined the CRA’s new approach in our Tax memo “Risk Assessment — The CRA’s New Audit Approach.” This Tax memo reviews the CRA’s progress and explains what to expect if your corporation is selected.