Tax planning should be practical, documented, and within CRA rules. For many Canadian taxpayers, useful planning starts with organizing records, reviewing deadlines, and responding carefully to CRA correspondence.
What Tax Planning Can Include
Depending on the taxpayer, planning may include:
- reviewing income sources before year-end
- organizing deductible expenses and receipts
- checking RRSP contribution room before contributing
- reviewing self-employment or rental records
- preparing for instalment questions
- planning around business year-end timing
- reviewing prior-year Notice of Assessment details
Avoid plans that promise a specific result before reviewing the facts or ignore CRA rules. Good planning depends on accurate facts and supportable records.
If You Receive A CRA Letter
Do not ignore the letter. Start by identifying:
- the tax year or reporting period
- the response deadline
- the exact documents CRA requested
- whether CRA is asking a question, proposing a change, or confirming a reassessment
- whether you need representative authorization before someone can speak with CRA for you
Keep a copy of the letter and all documents sent in response.
Representative Authorization
CRA explains that authorizing a representative lets that person or business represent you for specified tax matters. Authorization can apply to personal tax, business tax, trust tax, non-resident tax, or registered plan administration matters, depending on what is approved.
Only provide authorization through CRA-approved methods. Do not send CRA passwords or security codes through a general contact form.
Records Matter
CRA generally requires required records and supporting documents to be kept for six years from the end of the last tax year they relate to. If a CRA letter asks for support, clear records can make the response more direct.
Safe First Step
Use the website form to describe the general issue, such as “I received a CRA letter about medical expenses for 2025” or “I need help reviewing self-employment instalments.” Do not paste SINs, CRA credentials, banking details, full letter contents, IDs, or tax documents into the general form.