Fact or Fiction: An SR&ED Review Might Trigger A Tax Audit

This is one thing that people ask us about all the time – whether the CRA reviewing your SRED claim will cause the CRA to call a tax audit on their company.

I can understand why they would be worried about this. A tax audit can take up a lot of your time, is a lot of work, and can be a headache to get through. One would want to avoid a tax audit if one could.

So, it’s a relief to learn that an SR&ED review, in fact, will not trigger a tax audit. Because the SR&ED division of the CRA operates separately from other divisions, what happens in regards to your SR&ED claim stays within the SR&ED division of the CRA, and the results of your SR&ED claim does not determine whether the CRA will call a tax audit on your company.

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  • NorthBridge Consultants' Government Funding Blog is dedicated to bringing businesses news and information to help them identify and access the most appropriate government funding programs.

    We offer opinions and insider information that can provide a pulse on government initiatives, the health of the Canadian economy, and firsthand thoughts from Canadian business owners.

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