Be weary if a CRA auditor insists you to sign a waiver

Be weary if a CRA auditor insists you to sign a waiver

Under normal circumstances ,given there is no fraudulent activity involved, the tax department has three years to carry out a reassessment of your tax return.

If time is running out on the 36-month deadline, a CRA auditor will ask you to sign a waiver allowing the agency to conduct its reassessment after the three years are up.

You should consider the request “carefully” and get professional advice.  There is no obligation for you to file a waiver.  This just makes things easier for the auditor. If time of the reassessment period is about to run out, and the auditor doesn’t have enough info to warrant another reassessment, this can work to your advantage not to sign a waiver.

And if one is signed?  A revocation should also be filed at the same time the waiver is signed.  This will cancel the waiver in 6 months.

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