Canada’s Proposal to Expand Tax Audit Powers Sparks Concerns

Expansion of Canada’s power to gather tax information, as the government is proposing, would open companies and individuals to excessive penalties, more government mistakes, and expensive disputes, tax professionals say.

Draft legislation from the Department of Finance improves on a version released in 2024, according to attorneys and accountants, but they say the new proposal still represents a daunting challenge for taxpayers who must round up data quickly to prove to auditors their tax returns are accurate.

“This is going to change the game in audit work, and it’s going to make things a lot more threatening, a lot more ...