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Canada Revenue Agency CEWS audits

Canada Revenue Agency CEWS audits

The Canada Revenue Agency (CRA) realizes that COVID-19 has had a significant personal and economic impact on Canadians. We are committed to making emergency funds available to businesses, registered charities, and other organizations who urgently need the support, while preserving the fairness and integrity of our tax system.

To this end, the CRA first launched post-payment audits of Canada Emergency Wage Subsidy (CEWS) claims in the summer of 2020. The CEWS post-payment audit program is continuing with additional audits as of fall 2021.

The purpose of these audits is to ensure that taxpayer dollars are being appropriately distributed by identifying any errors in CEWS claims submitted and making sure that those who received emergency response benefits were in fact entitled to them.

The CRA understands that most claimants are applying the CEWS rules correctly and making every effort to comply. We also recognize the economic challenges that have resulted from the pandemic and the effect that the audit process can have on businesses, registered charities, and other organizations. For this reason, we continue to proceed carefully, knowing that businesses and the broader economy remain vulnerable due to the pandemic.

During the audit process, CRA auditors will contact claimants with a request to submit the documentation needed to verify revenue and payroll. The sooner that the CRA receives the documents requested, the more efficiently auditors can complete their verification activities. If claimants require additional time to gather the requested documentation, they should contact the auditor conducting the review of their file.

The CRA continues to encourage taxpayers to come forward and correct their tax affairs through the Voluntary Disclosures Program. For further information about CRA business audit, go to Business audits.