Accountancy Insurance claims activity across Canada for the period 1 January 2025 to 31 December 2025 demonstrates a continuation of established compliance patterns, with personal tax review programs and corporate post assessment processes again comprising the bulk of claim volumes.
The CRA and other relevant government revenue agencies maintained a clear focus throughout 2025 on automated verification, post assessment scrutiny and enhanced data matching models across both individual and corporate filings.
This article examines the three most common Audit Shield claim categories compiled by the Accountancy Insurance claims team for the period 1 January 2025 to 31 December 2025 and were correct as of 1 January 2026.
These were:
- Processing Reviews of T1’s – 35.83%
- Area Specific Audits of T2’s – 24.00%
- GST/HST/PST/QST Reviews of Businesses (Pre and Post Assessment Reviews) – 12.91%
Together, these three categories accounted for just over 72% of all Accountancy Insurance claims lodged during the period.
The breakdown of the top three most common Audit Shield claim categories compiled by the Accountancy Insurance claims team for the period 1 January 2025 to 31 December 2025 were:
1. Processing Reviews of T1’s
Processing Reviews of T1’s remained the largest source of Accountancy Insurance claims in 2025 at 35.83%, a 0.18% increase compared with the period 1 Jan 2024 to 31 December 2024 (35.65%). The result reflects continued reliance on automated screening tools that verify deductions, benefits eligibility and income items soon after filing. However, like many tax reviews, some are simply chosen at random.
If there are discrepancies or inconsistencies in the information provided on a T1 return, it may trigger a processing review. Sudden changes in a taxpayer’s filing pattern, such as a significant increase or decrease in reported income, could raise flags and prompt a review.
Claim proportion (frequency) 1 Jan 2025 to 31 December 2025: Processing Reviews of T1’s accounted for 35.83% of all Accountancy Insurance claims.
2. Area Specific Audits of T2’s
Area Specific Audits of T2’s represented 24.00% of all claims, a 0.4% decrease compared with the period 1 Jan 2024 to 31 December 2024 (24.41%). If there are inconsistencies in a tax return or financial statements, it could raise red flags. Unusual transactions or reporting might also prompt an audit.
The CRA might decide to focus on specific industries due to economic conditions, emerging trends, or to address known issues within those sectors. Public communications in 2025 about enhanced post assessment risk scoring remained consistent with the persistence of this category, even as the proportion edged lower.
Claim proportion (frequency) 1 Jan 2025 to 31 December 2025: Area Specific Audits of T2’s accounted for 24.00% of all Accountancy Insurance claims.
3. GST/HST/PST/QST Reviews of Businesses (Pre and Post Assessment Reviews)
GST/HST/PST/QST Reviews of Businesses (Pre and Post Assessment Reviews), when combined, accounted for 12.91% of claims, a 1.59% decrease compared with the period 1 Jan 2024 to 31 December 2024 (14.50%). The combined result masks movements in the two components:
Post Assessment accounted for 7.14%, a 1.02% decrease compared with the period 1 Jan 2024 to 31 December 2024 (8.16%). Activity commonly centred on input tax credit substantiation, documentation validation and cross jurisdiction discrepancies detected through data matching. The CRA have emphasised stronger analytics to deter fraud, which continued to shape review focus.
Pre Assessment accounted for 5.77%, a 0.57% decrease compared with the period 1 Jan 2024 to 31 December 2024 (6.34%). Reviews typically examined invoice validity, registrant status and transaction categorisation before assessments were finalised. The moderation suggests efficiency gains in early detection and better preparatory documentation among registrants. If discrepancies are identified during routine data matching, the CRA may initiate a pre or post assessment review to ensure accuracy.
Claim proportion (frequency) 1 Jan 2025 to 31 December 2025: GST/HST/PST/QST Reviews of Businesses (Pre and Post Assessment Reviews) accounted for 12.91% of all Accountancy Insurance claims.
The 2025 claims distribution aligns with policy signals from the CRA and provincial revenue authorities that emphasised automated verification, selective post assessment follow up and targeted indirect tax oversight. Personal tax workflows remained the highest volume pathway for review requests as analytics driven screening refined eligibility checks and deduction substantiation.
Area Specific Audits of T2’s continued to be shaped by risk models designed to surface documentation gaps and unusual reporting patterns. Indirect tax reviews remained material across provinces given cross border transactions and industry specific supply chains, although overall proportions eased.
Additional insights out of the top three
Several categories outside the top three experienced noteworthy shifts in 2025.
T3 Trust Reviews rose to 3.13%, a 1.46% increase compared with the period 1 Jan 2024 to 31 December 2024 (1.67%). This movement is consistent with expanded trust reporting requirements and heightened transparency expectations publicised during 2025.
Personal Tax – Other activity increased to 7.12%, a 0.83% increase compared with the period 1 Jan 2024 to 31 December 2024 (6.29%). The uplift suggests broader personal filing queries beyond the main review programs, including documentation gaps that sit outside defined subprograms.
Personal Tax – Matching Program Audit and Reviews increased to 5.89%, a 0.53% increase compared with the period 1 Jan 2024 to 31 December 2024 (5.36%), consistent with continued use of information matching to identify discrepancies.
The 2025 Canadian claims profile shows stability at headline level with nuanced shifts within categories. Processing Reviews of T1’s, Area Specific Audits of T2’s and GST/HST/PST/QST Pre and Post Assessment together accounted for most Accountancy Insurance claims, while movements in trust related reviews and selected payroll and personal subcategories signal evolving areas of attention.
As the CRA and other relevant government revenue agencies refine analytics and reporting frameworks into 2026, CPAs should expect continued emphasis on documentary support, early-stage verification and trust transparency.
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