Can the CRA Go Back Ten Years for Unfiled Taxes?

A common question I hear from people who have fallen behind on taxes is how far back the Canada Revenue Agency can go.

In many situations, taxpayers are allowed to correct and file up to the last ten years of tax returns. This gives people who have fallen behind a reasonable window to bring their filings up to date.

For example, if someone has not filed taxes since 2016, it is typically possible to prepare and submit returns for each of those years.

When someone contacts my office with several years of missing returns, we approach the process methodically. First we identify which years need to be filed. Then we gather the income information for those years and prepare the returns in chronological order.

For individuals who operated a business during that time, we may also need to prepare income statements and review whether GST/HST filings are required.

Once the filings are completed, the CRA will update their records and calculate the correct balances. In some cases the amount owing is lower than what people expected once all deductions and credits are properly included.

The most important step is simply starting the process.