What is Assisted Compliance and how does it work?

Assisted Compliance is an approach used by the Canada Revenue Agency (CRA) to offer support to businesses and self-employed individuals by helping them understand their tax obligations and how to meet them.

Officers, who are subject matter experts, will contact taxpayers to explain potential tax issues identified in their accounts and help them correct any mistakes.

Officers will:

• send a personalized letter outlining the potential tax issue;
• follow up by telephone about two weeks later to give tailored information to the taxpayer to help them better understand their tax obligations; and
• provide information on the steps to self-correct the tax issue.

What to do if you receive a letter

If you receive a letter, it is important that you read the details and follow the instructions.

A CRA officer will call you within approximately two weeks after sending the letter to discuss its contents.

We encourage you to gather the requested documents and have them available when the officer calls. You may want to be prepared with questions you have related to the issues mentioned in the letter, as the officer will be available to answer them. You can also reach the CRA officer directly before they call using the contact information in the letter.

It’s important to note that you are not under audit. The officer will ask you to review your tax returns to make sure any potential tax issues are reported correctly. If you find errors, you can correct your returns by requesting an adjustment and the officer can help you with this.

What if errors are identified, but not corrected?

If you choose not to request an adjustment to correct any errors identified in your tax information, it will be noted in your account and may lead to future enforcement action.

If your tax return was prepared or filed by a tax preparer

Although a professional tax preparer may have completed your tax returns, you are responsible for meeting all your tax obligations. Generally, tax preparers will use the information you give them to prepare your tax returns and may not be aware of all your tax obligations. This is why the CRA has sent this letter directly to you.

Requesting an adjustment

If you would like us to change one or more of your tax returns, you must submit a request for an adjustment.

You can request changes to previously filed tax returns using the T1 Adjustment Request form. For information on changing corporate returns, see Requesting a reassessment of your T2 return. The assigned CRA officer can help you complete this request.

Adjustments to your tax returns allow you to change any amounts you claimed or income you reported on any line of your tax return or schedules. Please note that changes may result in either a refund or an amount owing.

Topics addressed by Assisted Compliance

Related topics

• Voluntary Disclosures Program
• New educational trust accounts reviews to help businesses with their tax obligations
• Liaison Officer service