Published: March 18, 2020
Last Updated: February 21, 2022
CRA Data Analysis
CRA is extending the scope of its tax audit techniques by entering the field of data analysis. It is developing algorithms that will enable it to analyze external data such as real estate transactions and luxury items purchases and correlate that financial data with income reported on tax returns. CRA has recently begun receiving real time data of all international electronic money transfers in excess of $10,000 and is developing a computer application that will enable it to monitor more than 1 million transfers each month in real time. However since it is expected to take two or three years to get the computer program operational, tax auditors are currently going through a limited number of the transfers manually, and primarily based on specific country targets.
Disclaimer:
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."
