05/25/2026
Here are some of the most commonly audited business types:
- Cash-intensive businesses like restaurants, salons, and retail shops are at risk of unreported cash income
- Construction and real estate with a focus on unreported income, property flipping, and GST or HST reporting
- Self-employed and independent contractors with higher expenses, such as home office and vehicle use
- Short-term rentals and online businesses using platforms like Airbnb, VRBO, and Etsy
Common audit triggers to be aware of:
- Reporting losses year after year, which may be seen as a hobby instead of a business
- Income that does not match CRA records or bank deposits
- High or unusual expenses compared to your revenue
- Payroll or GST and HST errors, including late remittances or incorrect claims
How to protect your business:
- Organize and review your financial records
- Respond to the CRA promptly
- Work with a professional to handle the process correctly
Staying organized and accurate is the best way to reduce your audit risk and stay prepared.
Need help making sure your books are always accurate?
Send us a message or comment below, and we’re happy to help.
