Canada Revenue Agency ("CRA") agents are required to notify you in writing if your tax return is to be examined. It seems, however, that some agents are telephoning taxpayers selected for audit prior to sending a written notice.

If you receive this type of call from a CRA agent, do not get into any discussion with the caller because:

• you have no way of knowing if the caller is really a CRA agent;
• you may inadvertently divulge information that the agent is not entitled to; or
• you may make an offhand comment that might be misinterpreted by the agent, causing him or her to adopt a position that will take considerable time and effort to overcome.

 To emphasize, if someone calls claiming to be a CRA agent, or for that matter any government income tax authority, saying that your return has been selected for audit (or for any other reason), ask for written notification. When you receive it, please contact Logan Katz LLP before proceeding further.

The above provides general information only. It should not be regarded or relied upon as accounting or taxation advice or opinions. Logan Katz LLP Chartered Accountants would be pleased to provide more information or specific advice on matters of interest to you.

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