Introduction
The CRA issues hundreds of thousands of information requests annually. Most are routine — a matching exercise between third-party information and filed returns, or a question about a specific deduction. But for the business owner who receives one, the arrival of a CRA letter requesting documents and explanations is rarely routine-feeling.
Understanding what an information request actually is — and how it differs from a formal audit — helps respond to it correctly rather than either ignoring it or overreacting.
Scenario: Riverfront Design Corp Receives a Letter
In March 2026, the director of a small design corporation receives a letter from the CRA's review programs. The letter states that the CRA is reviewing the corporation's 2023 T2 return and requests the following within 30 days:
Copies of invoices supporting $47,000 in claimed subcontractor expenses
Vehicle expense logbook and supporting receipts for $18,000 in claimed vehicle costs
Explanation of a $28,000 shareholder loan repayment
The letter is signed by a tax services officer and provides a phone number. It notes that failure to respond may result in a proposed reassessment.
What This Is (and Is Not)
This is a desk review — a targeted information-gathering process that the CRA conducts from its offices, without visiting the business. It is not a field audit. The officer reviewing the return has identified specific items that appear unusual, incomplete, or inconsistent with other information the CRA holds.
A desk review is less serious than a full audit but more serious than a routine Notice of Assessment. If the information provided satisfactorily explains the items in question, the review is closed and no further action is taken. If the information is insufficient — or is not provided at all — the CRA will typically propose a reassessment, disallowing the questioned items.
What the Director Should Do Immediately
Step 1 — Contact the CPA, not the CRA.
Before responding to any CRA request, the corporation's CPA should be informed. If the CPA is authorised on the CRA My Business Account as the corporation's representative, the CPA can contact the CRA officer directly, confirm what is being requested, and manage the response.
Step 2 — Gather the requested documents.
The three items requested in this example are straightforward in theory — invoices, logbook, and an explanation of the shareholder loan repayment. The CPA and the director should review the documentation together before submitting anything to confirm it is complete, consistent, and supports the amounts claimed.
Step 3 — Respond in writing within the deadline.
A written response — prepared by the CPA — is better than a phone response. It creates a clear record of what was provided and the basis for the corporation's position.
When Documentation Is Incomplete
If the vehicle logbook does not exist, or the subcontractor invoices are missing, the review becomes more complicated. The response should acknowledge the gap and provide whatever alternative support is available — bank records showing payments to the subcontractor, email correspondence, project records, or other contextual documentation.
The CRA is not always inflexible when documentation is incomplete if the overall picture is plausible. An officer who receives a response that includes the available documentation, a clear explanation of why a specific record is missing, and corroborating evidence is in a better position to accept the deduction than one who receives no response at all.
What Not to Do
Do not ignore the request. Non-response results in a proposed reassessment that disallows the questioned items — and at that point, the taxpayer must file an objection rather than simply providing the information.
Do not contact the CRA without your CPA present or briefed. Verbal responses to CRA officers are not recorded, and misstatements made in a call can complicate the file.
Do not fabricate or reconstruct records. Documents that are clearly backdated or inconsistent with the rest of the records will result in escalation, not resolution.
The Outcome
In the Riverfront Design Corp scenario, the CPA responds within 30 days with the subcontractor invoices, a reconstructed vehicle log (supported by fuel receipts and calendar records of site visits), and a written explanation of the shareholder loan repayment tracing it to a prior director loan. The CRA accepts the response and closes the review without adjustment.
Total cost: approximately four hours of CPA time. No reassessment. No penalties.
When to Speak With a CPA
A CRA information request should prompt an immediate call to the CPA — not a call to the CRA officer. The response is a managed professional communication, not a casual explanation. Getting it right the first time prevents escalation.