Whether on a personal tax return, or a corporate tax return, if you’re adjusting your tax return in Canada, it’s important to understand what kind of change you’re making — and how the CRA is likely to view it. While adding a missed T-slip is usually straightforward, changing how income is reported or reclassifying capital gains can raise red flags. Check out the video or transcript below to learn when the CRA is flexible, and when they expect a strong reason for the revision.
Video Transcript: Adjusting your tax return in Canada – avoid this big mistake
One of the ways of reducing the odds of receiving a Revenue Canada audit is to get the tax return done right the first time. But sometimes life happens.
The most likely instance is you’ve received a T slip — like a T5 or T3 — that needs to be added to your return. It’s aggravating, it might cost you a few more dollars, but it’s not the end of the world. It doesn’t put a black mark next to your name.
However, if you’ve taken a tax position — say, claiming a capital gain — and later want to change that to income, that’s more complicated. And yes, there are situations where that’s a good thing, particularly for corporations.
Or maybe you capitalized costs that you now wish had been expensed. That’s a much harder adjustment.
It’s not impossible to change — but it does require a compelling reason and a strong explanation. Because now you’re showing Revenue Canada that your original filing (or your advisor’s) was incorrect, and you’ve changed your mind.
All the more reason not to rush your return in the first place.
I’m George Dube, saving the world from tax, one bow tie at a time®.
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Check out the next video in the series.
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-End transcript-
Resources
For additional resources related to how to maximize tax deductions, see:
- 2025 tax season tips: How to save more this year
- Unhappy with your tax bill? How to fix it for next year
- How to change your tax return (Personal)
- Requesting a reassessment of your T2 return (Corporate)
More questions?
Still have questions? I want to help you Do wonderful things®, so please contact me today.
Remember – circumstances are unique! This information is summary in nature. Seek out advice from your tax advisor about your specific situation.
