Canadian Tax - S13 - Audit Vocab

CRA review

CRA's examination of information or documentation relating to a tax return.

Audit

A more formal CRA examination of a taxpayer's books, records, documents, and/or tax return.

Reassessment

CRA's change to a previously assessed return.

Taxpayer objection

A formal process through which a taxpayer disputes a CRA assessment or reassessment.

Supporting documents

Evidence used to support amounts reported or claims made on a tax return.

Receipt

Documentary evidence supporting an expense or contribution.

Audit trail

Documentation showing where reported amounts came from and how calculations were performed.

Due diligence

Taking reasonable steps to ensure the return is prepared accurately and claims are properly supported.

False statement

Incorrect information provided on a return.

Omission

Failure to report required information.

Penalty

A monetary consequence that can apply when certain tax rules are violated.

Interest

Amount charged on certain unpaid taxes or amounts owing.