CRA confirms its protocol for referrals by Appeals back to Audit

CRA indicated that where specific documents or information was requested by the auditor, but only provided by the taxpayer at the objection stage, the appeals officer is required (with the exception of the GST/HST Refund Integrity Program) to make a referral to audit. In other situations, a referral to Audit is discretionary, for example, where the new information provided for review is substantial, or where an on-site visit is warranted for factual verification.

Upon the referral by the appeals officer, Appeals will so inform the objector or representative and assure them that the review decision remains with Appeals. Upon receipt of audit findings, Appeals will discuss them with the objector or representative, and may share the second auditor’s report, addressing the submission of the supplemental documentation, with the taxpayer.

Although CRA was responding in a GST Roundtable, the underlying referenced 2016 Protocol also applies to income tax appeals (i.e., from the ILBD, SMED, and SRED Directorates or the Offshore Compliance Division)..

Neal Armstrong. Summary of 25 March 2021 CBA Commodity Taxes Roundtable, Q.13 under ETA s. 301(3).