💣 So many people have been audited by the CRA lately! Why a Simple CRA “Request for Information” Can Turn Into a Big Tax Bill💥

In the past few months, my inbox and phone have been flooded by the same type of client. And their opening line is almost identical:

“Hi Accountant Wang… I just received a letter from CRA asking for some documents. I uploaded the files through My Account, and not long after… I got a Reassessment saying I owe thousands! What happened?!”

Don’t laugh — this happens all the time.

In the CRA world, there is no such thing as a small request. That “simple document request” could very well be the start of a tax-landmine.

When CRA asks for additional documents, what they truly want is supporting evidence to verify the income or deductions you claimed. Below are the 10 most common items CRA asks taxpayers to provide — and what they really expect to see.

1. Foreign Income Proof

What CRA wants:

• Clear type of income (employment, self-employment, rental, dividends, interest, consulting, etc.)

• Payer name + payment method (bank transfer, PayPal, cheque) + detailed amounts

• Whether you performed the work inside or outside Canada (affects taxability)

Common mistake: People upload a bank screenshot only. CRA cannot determine the nature of the income. Correct approach: include contracts or invoices and label the income category.

2. Rent Receipts or Property Tax Bill

If you rent:

• Landlord-signed rent receipts with address, month, amount, and signature

• If no receipts: e-transfer records plus landlord information/explanation

If you own your home:

• Full property tax bill

• Proof of payment (bank transfer, credit card statement)

Unpaid property tax bills are not considered “paid” by CRA.

3. Proof of Foreign Tax Paid

U.S. income:

• W-2 or 1099

• Federal tax paid confirmation

• State tax paid confirmation

China income:

• Employer income certificate

• China tax payment certificate with stamp and tax ID

Other countries:

• Income proof + official tax bill

• Mention whether that country has a tax treaty with Canada

Common mistake: Submitting income proof but not the actual tax-paid certificate → CRA denies the foreign tax credit.

4. Pension Split

CRA requires:

• Form T1032 signed by both spouses

• Pension source documents (T4A(P), T4A(OAS), company pension details)

• If spouses live in different provinces—explain the residence and splitting ratio

Typical error: Only checking the “pension split” box without uploading T1032 → CRA ignores the split and reassesses.

5. Childcare Expenses

Receipts must include:

• Caregiver or institution signature

• SIN number (for individual caregivers)

• Service dates and total amount

If paying privately (cash or e-Transfer): Provide bank proof + written explanation.

Usually the lower-income parent claims childcare expenses.

6. Medical Expenses

CRA expects:

• Itemized medical receipts (doctor, dentist, pharmacy, vision, etc.)

• Insurance EOB (Explanation of Benefits) for reimbursed amounts

Common mistake: Providing only bank charges or a lump-sum receipt without service details. Receipts must show patient name + service type.

7. Charitable Donations

CRA requires:

• Donation receipts from a registered charity (must include BN number)

• Must state “Official Donation Receipt for Income Tax Purposes”

Common mistake: Church or association receipts without a BN → CRA does not accept them as claimable donations.

8. RRSP Contributions

CRA accepts official RRSP contribution receipts only — not bank transfers.

CRA cross-checks the amount with your financial institution’s system.

Note: contributions made after the deadline (after Feb 29) cannot be applied to that year.

9. T-Slip Matching (T4, T5, T3, etc.)

CRA automatically compares your tax return to employer or bank records.

If you forget a slip — even a small part-time T4 — CRA will:

• add the missing income

• charge interest

Tip: Always log in to CRA My Account before filing and confirm all slips are listed.

10. T2200 – Employment Expenses

Employer-issued T2200 must clearly state:

• Work conditions (your own equipment, home office, travel, etc.)

• Supporting documents (home office calculation, internet/phone bills, mileage logs)

Common errors:

• Employer issued T2200 but left conditions blank → CRA rejects

• Employee claims the full rent instead of the calculation ratio

So… what should you do when audited by CRA and asked for documents?

✔ Step 1: Don’t panic — read the letter carefully.

Check the top-right corner for the Case/Reference number. That’s your file ID when audited by CRA.

✔ Step 2: Organize your evidence.

Sort by category:

• Foreign income → contracts + transfers + foreign tax paid

• Rent → receipts + bank proof

• Medical → receipts + insurance EOB

• Etc.

  
  

✔ Step 3: Write a short cover letter.

Tell CRA:

• Who you are

• What documents you’re submitting

• What each one proves

• Keep the order clear and numbered

A well-organized package makes approval much easier.

✔ Step 4: Keep records.

Whether uploaded or mailed, save confirmation screenshots.

Often, a clear cover letter alone can turn a “complex case” into a “straight-through approval.”

A Final Honest Reminder

When CRA reviews your file, they are not trying to “pick on you” —they’re simply verifying your claims.

But if you upload unclear documents, no explanation, and no logic, your silence becomes a default red flag.

💡 The smartest thing you can do?

On the same day you get the CRA letter, send a photo of it to your accountant.

Professionals know how to speak CRA’s language and present your financial story the way CRA expects.