Tax Audit - Property Tax Paid Review

If a client has claimed property tax expenses on a Canadian personal income tax return, the Canada Revenue Agency (CRA) may request additional supporting documents to verify the amount claimed, proof of payment, the use of the property, and whether the claim complies with the applicable tax rules.

When a client receives a CRA review letter, request for supporting documents, or other notice regarding property tax paid, the client may contact us immediately for assistance. We will review the CRA correspondence, confirm the response requirements, organize the relevant documents, and prepare and submit a formal response on the client’s behalf to help the review process proceed smoothly.

Our Services Include:

• Reviewing the CRA property tax review letter or request for supporting documents;
• Confirming the documents required by the CRA and the response deadline;
• Reviewing the property tax bill issued by the municipality or local authority;
• Reviewing proof of payment and related supporting records;
• Verifying that the amount claimed is consistent with the client’s personal income tax return;
• Assisting in confirming the use of the property, such as a principal residence, rental property, or home office;
• Helping the client organize, supplement, or explain missing information;
• Preparing the CRA response letter and supporting document explanations;
• Submitting the review response and supporting documents to the CRA; and
• Following up on subsequent CRA correspondence and keeping the client informed of the review outcome.

Please send us your tax documents & order number via email: info@kewangcpa.com

Commonly Required Documents

Depending on the CRA’s specific request, the client may be required to provide:

• The CRA review letter or request for supporting documents;
• A municipal property tax bill;
• Bank payment records or receipts;
• The property address and ownership information;
• A lease agreement or rental income records, if the property is used as a rental property;
• Home office area and usage details, if the claim relates to business-use-of-home expenses;
• The client’s personal income tax return information for the relevant tax year; and
• Any other supporting documents requested by the CRA.

The exact document requirements will depend on the CRA correspondence received by the client.

Important Notice

CRA review letters generally include a specific response deadline. Clients should contact us as soon as possible after receiving the letter to avoid potential issues caused by a late response, incomplete documentation, or insufficient supporting evidence. These issues may result in the related expense claim being denied, the client’s refund being adjusted, or additional tax becoming payable.

This service is intended to assist with document review, response preparation, and the CRA review process. The final decision is made by the CRA based on the client’s individual circumstances and the supporting documents provided.