Combined Tax Audits

by Natalie
(Surrey, BC)

CRA is discontinuing combined tax audits.

Can the CRA still do combined GST/HST and Income Tax Audits?

I read on CRA site that they were discontinued in July of 2010.

Hi Natalie,

I suppose they could ... but they have announced they are not going to.

I posted the notice under CRA News on March 11. You can read more on this by clicking here.

Comments for Combined Tax Audits

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Apr 28, 2011

GST/HST Tax Audit
by: Natalie

I have received a letter from the CRA for a GST/HST Audit. On the list of records they want are the income tax returns (schedule T2124) for both years being audited.

I have been through other GST/HST audits for my clients and have never had to provide the income tax returns. Do you know if the CRA need this for a GST/HST audit or are they auditing both ???? They have made no mention of an income tax audit, only the GST/HST audit.

Any input you have would be greatly appreciated.

Apr 28, 2011

Schedule T2124
by: Lake

Hi Natalie,

All I can think is that because the audits are no longer combined, the GST/HST audit department must need you to supply the income tax information.

My guess is they would want to verify that the reported income on the tax returns matches the income reported on line 101 of the GST/HST returns file with CRA.

The fact they are asking for schedules T2124 suggests the audits are for the tax year prior to 2008. I would phone the CRA as I thought these years would be statute barred by now unless fraud is suspected.

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