The following information from the Canada Customs and Revenue Agency, CCRA, is for the year 2000-01.
- With respect to question (a) (i) and (ii): (A) Personal Income Tax Returns: The data includes audit actions by Compliance Programs Branch on T1 returns only. See (C) below for a list of included programs. A T1 return is an Income tax Return for Individuals. Income to be included on T1 returns includes, but is not limited to: employment income, self-employed income, professional income, commission income, farming income, fishing income, rental income, partnership income and taxable capital gains.
(B) Small Business Tax Returns: The data includes audit actions by Compliance Programs Branch on T2 returns only, excluding audit actions performed on the large and basic Corporations. Small Business tax returns also includes all GST audit actions whether the GST registrant is a corporation or a self-employed individual. See (C) below for a list of included programs. A T2 return is an Income tax return for corporations. All incorporated businesses are required to complete a T2 income tax return detailing their taxable income for the taxation year.
(C) Number of audits: The data indicates the count of files audited/reviewed in the following Program areas:
Business audit--Tax and goods and services tax, GST; Tax avoidance; Office audit; International audits; Non-resident audits; Competent authority; Tax incentive audits; Benefit employment income audits, BEIA; Post review; Refund examination.
- With respect to question (b):
Number of audits finding money owing to the CCRA: The data includes audits where federal tax payable has been increased or tax refunds have been reduced as a result of CCRA's audit presence.
- With respect to question (c):
Percentage of audits appealed: This data was provided by the Appeals Branch. It represents the number of audit files appealed from April 1, 2000 to March 31, 2001. These numbers do not take into consideration any timing differences that may occur as a result of a 90 day appeal period. A taxpayer has 90 days from the date of notification of CCRA's audit adjustment(s) to file an appeal. Therefore, some appeals relating to audits completed in the year ending 2001, may not be received until 2002. Conversely, some appeals received in 2001 may relate to audits completed in 2000.
- With respect to question (d):
Total number of audits: The total number of audits includes all audit actions reported in the Canada Customs and Revenue Agency's 2000-2001 Annual Report. It includes the programs listed in note 1(C) above. In addition, it includes return types associated with the large file program and other tax returns audited aside from personal and business returns, such as trusts, charities, et cetera.
Excluded from this count are the number of files reviewed and/or processed in the following areas:
Non-filers; GST domestic rebates processed; non-resident returns processed; International tax other; Investigations.