At a Glance
For most individual taxpayers and Canadian-Controlled Private Corporations (CCPCs), the Canada Revenue Agency can reassess your tax return up to 3 years from the date of the original Notice of Assessment. For other corporations, the period is 4 years. In cases involving loss carrybacks or foreign property, CRA can go back 6 years. And if CRA suspects fraud or misrepresentation, there is no time limit.
Understanding these reassessment windows is essential for knowing how long you need to keep records, when you are "in the clear" for a given tax year, and what your rights are if CRA contacts you about an older return.
Reassessment Period Summary
| Situation | CRA Can Reassess Up To... |
|---|---|
| Standard — individuals and CCPCs | 3 years from date of original Notice of Assessment |
| Standard — other corporations | 4 years from date of original Notice of Assessment |
| Loss carryback claims | 6 years |
| Foreign property (Form T1135) | 6 years |
| Transfer pricing adjustments | 6 years |
| Taxpayer relief request (T1-ADJ) | 10 years (taxpayer-initiated, not CRA-initiated) |
| Fraud or misrepresentation | No time limit |
The Standard 3-Year Reassessment Period
Under subsection 152(3.1) of the Income Tax Act, CRA's standard "normal reassessment period" is 3 years from the date of mailing of the original Notice of Assessment for individuals and CCPCs, and 4 years for other corporations.
This means if you filed your 2023 personal tax return and received your Notice of Assessment on June 15, 2024, CRA can reassess that return until June 15, 2027.
It is important to note that the clock starts from the date of the Notice of Assessment, not from the filing deadline or the date you filed. If you filed late and received your assessment on a later date, the reassessment period extends accordingly.
Within this 3-year window, CRA can review any aspect of your return — income, deductions, credits, and supporting documentation. After the period expires, CRA generally cannot issue a reassessment unless one of the extended periods applies.
The 6-Year Extended Reassessment Period
Several situations allow CRA to reach back 6 years instead of 3:
- Loss carryback claims: If you carry a loss back to a prior year, CRA can reassess the prior year within 3 years of the date you filed the return that created the loss — effectively extending the window.
- Foreign property reporting (Form T1135): If you hold specified foreign property with a total cost exceeding $100,000 at any time during the year and you either failed to file Form T1135 or did not report the income from that property, CRA can reassess up to 6 years from the date of the original assessment.
- Transfer pricing: If your transactions with non-arm's length non-resident parties are reassessed under the transfer pricing rules, the reassessment period is extended to 6 years.
The 10-Year Taxpayer Relief Window
The 10-year period is often confused with CRA audit powers, but it is actually a taxpayer relief measure. Under subsection 152(4.2) of the Income Tax Act and the CRA's taxpayer relief provisions, you can request adjustments to your returns for up to 10 calendar years back.
This is useful if you forgot to claim a deduction or credit, made an error on a past return, or discovered that you overpaid tax in a prior year. You submit a T1-ADJ request (or use CRA's Change My Return online service), and CRA may reassess the return in your favour.
This 10-year window does not give CRA additional audit power — it is a relief mechanism for taxpayers. For details on how CRA uses the 10-year rule, see our dedicated guide on the CRA 10-year limit.
No Time Limit: Fraud and Misrepresentation
Under subsection 152(4)(a)(i) of the Income Tax Act, CRA can reassess at any time if the taxpayer "made any misrepresentation that is attributable to neglect, carelessness, or wilful default or has committed any fraud in filing the return or in supplying any information under this Act."
This is the broadest reassessment power, and it has no time limit. CRA has successfully reassessed returns more than 10 years old under this provision.
What constitutes "misrepresentation" is broader than outright fraud. It includes failing to report income (even unintentionally, if it resulted from neglect or carelessness), making false claims for deductions or credits, and providing misleading information to CRA.
If you are concerned about potential misrepresentations in past filings, the CRA's Voluntary Disclosures Program (VDP) allows taxpayers to come forward and correct errors before CRA discovers them. A successful VDP application can result in reduced penalties (though interest will still apply). Our tax compliance team can advise on whether a voluntary disclosure is appropriate for your situation.
How Long Must You Keep Tax Records?
CRA requires that you retain all books, records, and supporting documents for at least 6 years from the end of the last tax year they relate to. For example, records for your 2025 tax year must be kept until at least December 31, 2031.
If you have filed an objection or appeal, you must keep records until the matter is fully resolved and the time for further appeal has expired. If you have not filed a return for a particular year, there is no time limit on how long records must be retained.
For practical purposes, many accountants (including our team at LedgerLogic) recommend keeping records for 7 years to provide a buffer, and keeping records indefinitely for any year in which there may be a risk of misrepresentation allegations.
What Triggers a CRA Audit?
While this page focuses on reassessment time limits, it is helpful to understand what prompts CRA to look at your file in the first place. Common triggers include large year-over-year changes in income or deductions, claims that are unusual for your industry or income level, inconsistencies between reported income and information from third-party slips (T4, T5, etc.), repeated errors or late filings, and random selection through CRA's risk assessment system.
For a more detailed discussion of audit likelihood and how to reduce your risk, see our guide on the chances of getting audited by CRA.
Your Rights During a CRA Audit
If CRA contacts you about an audit, you have specific rights under the Taxpayer Bill of Rights, including the right to be treated professionally, the right to complete and accurate information about your obligations and entitlements, the right to privacy and confidentiality, and the right to object to an assessment and appeal to an independent body.
You are also entitled to have a representative (such as a CPA or tax lawyer) deal with CRA on your behalf. For a complete guide to navigating the audit process, see our article on how to deal with a CRA audit.
If CRA has assessed penalties as part of a reassessment, you can learn about the specific penalty provisions in our guide to CRA audit penalties.
Frequently Asked Questions
Can CRA audit more than 3 years back?
Yes. While the standard reassessment period is 3 years from the date of the original Notice of Assessment (4 years for non-CCPC corporations), CRA can go back 6 years in cases involving loss carrybacks, foreign property, or transfer pricing. There is no time limit if CRA suspects fraud or misrepresentation.
Is there a statute of limitations on CRA audits?
Canada does not have a statute of limitations on tax fraud. For standard reassessments, CRA is limited to 3 years (individuals and CCPCs) or 4 years (other corporations) from the date of the original assessment. However, if the taxpayer made a misrepresentation due to neglect, carelessness, or wilful default, or committed fraud, CRA can reassess at any time.
How far back can CRA audit a small business?
For a Canadian-Controlled Private Corporation (CCPC), the standard reassessment period is 3 years. For corporations that are not CCPCs, it is 4 years. If the business claimed loss carrybacks or has foreign property reporting obligations, CRA can go back 6 years. Fraud or misrepresentation has no time limit.
Can CRA audit you after 10 years?
Only in cases of fraud or misrepresentation, which have no time limit. The 10-year period refers to the taxpayer relief provisions, which allow taxpayers (not CRA) to request adjustments to their returns for up to 10 calendar years back. This is a taxpayer-initiated process, not a CRA audit power.
What triggers a CRA audit?
Common triggers include significant year-over-year changes in income or expenses, claiming unusually high deductions relative to income, inconsistencies between reported income and lifestyle indicators, repeated errors on returns, industry-specific targeting, and random selection. For more detail on audit triggers and likelihood, see our guide on the chances of getting audited by CRA.
How long do you need to keep tax records in Canada?
CRA requires you to keep all supporting documents and records for at least 6 years from the end of the last tax year they relate to. If you have filed late or are involved in an objection or appeal, you must keep records until the matter is fully resolved and the time for any further appeal has expired.
Facing a CRA audit or concerned about past filings? LedgerLogic's CPAs have direct experience with CRA audit procedures, including voluntary disclosures and objections. We handle everything from document preparation to CRA correspondence.
Sebastien Prost
The LedgerLogic Editorial Team is dedicated to providing accurate, up-to-date financial advice for Canadian small businesses.
