Mr. Speaker, with respect to the question, what follows is the response from the CRA as of March 14, 2024, which is the date of question.
In regard to part (a) of the question, the CRA administers tax laws and various benefit programs for the Government of Canada and several provinces and territories. Audits are an important part of the CRA’s range of activities aimed at making sure the tax system is fair for everyone. The CRA selects files for audit based on a variety of risk factors.
To safeguard the integrity of the tax system, the CRA does not comment on which factors it uses to determine the risk within a tax filing. Additionally, the protection of taxpayer information is of utmost importance to the CRA. To respect the confidentiality provisions of the acts it administers, the CRA cannot provide taxpayer information or comment on specific taxpayer files, which it may or may not be reviewing.
Regarding part (b), as part of the application process for scientific research and experimental development, or SR and ED, tax incentives, applicants are required to disclose the percentage of their funds resulting from federal grants, contracts and provincial funding. However, applicants are not required to identify the precise source of such funding. Consequently, the CRA is not in a position to comment on how many SR and ED claimants have received Sustainable Development Technology Canada, or SDTC, funding or which SDTC recipients may be the subject of a CRA audit.