Income Tax Audit Manual

Compliance Programs Branch (CPB)

Information

The Income Tax Audit Manual is for CRA employees involved in income tax audits of small and medium-sized businesses. The information in this manual can be applied in other areas of CRA work, and chapters are cross-referenced in various CRA memos and training documents, as well as other manuals.

To avoid renumbering cross-referenced material, when it has become necessary to delete or relocate information in the manual, the section or chapter has been marked as “for future use”.


Chapters 2.0, 5.0, 7.0, 14.0, 21.0, 23.0, 25.0, 26.0 are retained "for future use."


The Income Tax Audit Manual (Manual) was written for the use of Canada Revenue Agency (CRA) auditors. The CRA makes no claims, promises, guarantees or warrantees about the completeness or currency of the information contained in, linked to or referenced by the Manual. While the CRA makes every effort to keep the Manual up to date, there may be memoranda, communiques and policies issued, as needed by the CRA, which will take precedence over the materials found in the Manual.

Disclaimer

Hyperlinks to external or unaffiliated websites are for information purposes only. The Canada Revenue Agency (CRA) is not responsible for the content or practices of such websites. While efforts are made to make sure that hyperlinks are current and up-to-date, it is not guaranteed.

Table of Contents

Chapter 1.0 The Income Tax Audit Manual – Organization, purposes, and uses

Chapter 3.0 Taxpayer Rights and taxpayer relief

Chapter 4.0 Auditor's standards of conduct, authorities, and responsibilities

Chapter 6.0 Organization of the Audit Division in the tax services office

Chapter 8.0 Business Intelligence

Chapter 9.0 Audit planning and preparation

Chapter 10.0 Conducting the audit

Chapter 11.0 Completing the audit 

Chapter 12.0 Specific audit guidelines and checklists

Chapter 13.0 Audit techniques

Chapter 15.0 International audit issues 

Chapter 16.0 Clearance certificates

Chapter 17.0 Estates and Trusts 

Chapter 18.0 Audit Quality Review 

Chapter 19.0 Objections and appeals

Chapter 20.0 Valuation of inventory

Chapter 22.0 Elections, designations, and discretion 

Chapter 24.0 Transactions involving related persons, corporations and shareholders, dividends, etc.

Chapter 27.0 Income

Chapter 28.0 Penalties

Chapter 29.0 Losses

Page details

2026-01-05