CRA provides instances where it may require the production of personal bank statements

After CRA was given the example of auditors auditing a private company and asking for the personal banking records of all the shareholders, CRA listed the following as situations where it may require personal banking information, which it considers itself authorized to do pursuant to s. 231.1(1):

• Where it conducts an indirect verification of income, in which case it must obtain the personal banking records of the shareholders of the closely held corporation, as well as their spouses and common law partners, and all contributing members of each household unit.
• Where it is unable to rely on accounting records due to weak internal controls or the absence of segregation of duties.
• When inconsistencies are noted between the apparent lifestyle of the taxpayer and the reported income.
• In order to verify transactions between the corporation and the shareholder.

Neal Armstrong. Summary of 2024 Alberta CPA Roundtable, Q.8(a) under s. 231.1(1).