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This was in a review of a previous tax return. The error is high four figures which translates into a low four figures refund.

Do they keep copies of the documentation?

What are the chances they would find out the error on their own?

If you were in the same situation, would you bring the error to their attention?

I should mention that I'm very aggressive in claiming deductions in our tax returns. For the past several years, CRA has asked us to provide more information, at considerable cost in time and effort for myself, and I've been successful in defending each one. So I guess we're in their special attention file.

Thank you,

(un)Lucky

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They keep records on all interactions with you. It is quite unlikely that they will discover it on their own as you are using the numbers they generated so they are unlikely to recheck their conclusions as the inputs that led to those conclusions haven't changed.

As to whether you should bring it to their attention, that's up to you. Consequence-wise it's only going to come up if you get audited (which is quite different from the request from more information). If I recall correctly, the statute of limitations for Canadian taxes is seven years. Late fees are described here . Odds are good you will get away with it but in the end it is a gamble.

Bottom line is that as a citizen you do owe that money and you know it but I think you are looking for practical advice rather than ethical so I'll leave that to you.

Edit: Further information on statute of limitations. Much shorter than I thought.

Jedidja
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Myles
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