6 Common Triggers That Get You Audited by the CRA

The CRA audits a small percentage of returns each year, but certain patterns dramatically increase your chances of being selected.

1. Large, Unusual Deductions

If your employment expenses or business deductions are significantly higher than average for your income level, the CRA notices.

2. Repeated Business Losses

Claiming business losses year after year suggests the CRA might view your “business” as a hobby — especially with no profit in sight.

3. Unreported Income

The CRA cross-references T4s, T5s, and T3s from employers and financial institutions. Missing slips trigger reviews.

4. Cash-Heavy Industries

Construction, restaurants, and personal services are subject to more scrutiny due to the prevalence of unreported cash.

5. Sharp Changes in Income

A sudden large drop or spike in reported income year-over-year can raise flags.

6. Home Office Claims for Salaried Employees

Post-pandemic, the CRA has increased scrutiny on T2200-based employment expense claims.

The best defense is accurate, well-documented returns filed by a professional. That’s exactly what we provide.