One thing I have noticed over the past few years, is that every time I have added a new or different kind of Tax deduction, credit or such, since I start using E-file, inevitably, I receive something in the mail from the CRA telling me that, “You aren’t being audited, however, can you just kind of send us those receipts now?“.
You need to keep all of your receipts if you submit your return via E-file programs, this is very important.
The CRA seems to become quite interested when a “new” claim or some different kind of claim appears on my tax return, I end up with a nice letter asking me to send in copies of my receipts. My guess is their computer review flags “new and exciting” claims which then spits the nice letter to the tax payer asking for proof of this “change of life circumstance” (financially).
A few examples of an “interesting life event” would be:
- The first time one of the girls went off to University (claiming tuition fees)
- First time one of the girls claimed living expenses for school (yes they got a letter asking for receipts)
- This year I am being asked for receipts for school expenses (this is the first year my youngest daughter is at school) and for my Medical expenses (for my son’s schooling).
The thing to remember that this is not an “audit” but it can turn into something bad if you ignore the nice letters from the CRA. Don’t IGNORE letters from the CRA!