A letter from the Canada Revenue Agency asking about a return or transaction can feel unsettling, but a review is a request to check information. Read the letter carefully before responding: it should identify what the CRA is examining, what records it wants, and when it expects a reply. A review is not automatically a finding that something is wrong.
Understand the request before gathering records
Note the tax year or reporting period, the type of tax involved, the items under review, and the response deadline. Make a list of each document requested. If the scope or wording is unclear, ask for clarification rather than sending a large, unorganized collection of records. If the deadline is difficult to meet, contact the CRA promptly and ask whether an extension is possible; do not assume one has been granted.
Common supporting records can include sales invoices, receipts, bank and credit card statements, contracts, payroll records, GST or PST filings, and bookkeeping reports. Gather documents that relate directly to the questions in the letter. Keep copies of everything you send, along with a record of the date and method of delivery.
Make the records easy to follow
Organize the documents by request item or period, and label them clearly. Where a number on a return is supported by several records, prepare a short explanation showing how the records connect to the reported amount. For example, a bookkeeping total may be supported by a ledger report and the underlying invoices or statements.
Do not alter or recreate source documents to make them fit a figure. If you find an error or cannot locate a record, note that accurately and get advice on how to address it. Businesses generally need to keep tax records and supporting documents for at least six years, though specific situations can affect retention requirements. Maintain reliable digital copies and preserve original documents where applicable.
Respond clearly and keep a record
Answer the questions asked, provide the requested evidence, and avoid guessing. If the CRA asks for an explanation, keep it factual and consistent with your books. Save the submission and any follow-up correspondence. If you use an authorized representative, confirm they have the necessary permission to speak with the CRA about your account.
If the CRA proposes an adjustment, review the reasons and calculations before agreeing or responding. Pay attention to any dates and review or objection options stated in the notice. A bookkeeper or accountant can help reconcile the request to your records and prepare a clear response. If you receive a CRA review request and would like help understanding it, you can get in touch with Ledgerline Accounting.
This article is general information, not financial advice, and it may not reflect the latest rules or your own situation. Talk to Ledgerline Accounting about your circumstances before acting on it.