n today’s cashless society, e-transfers are second nature. Whether you’re splitting dinner with friends, paying rent, or selling products online, digital transfers make life easier. But here’s the real question: Can the Canada Revenue Agency (CRA) track your e-transfers? And more importantly, could that lead to an audit?
At West Wing Financial, we help Canadians like you understand how e-transfers are monitored — and how to stay compliant while still enjoying financial freedom.
How E-Transfers Really Work
Your money doesn’t actually travel via text or email — those are just notifications. The real transfer happens directly between bank accounts via secure banking networks. And guess what? Your bank keeps detailed records of every transfer, including the amount, sender, recipient, and date.
These records aren’t just for your convenience. Financial institutions are required to report certain activities to FINTRAC, Canada’s financial intelligence agency. And from there, the CRA may get involved — especially if something doesn’t look right.
When Are Your E-Transfers Flagged?
Not every e-transfer is reported to the CRA automatically. But here’s when you should be paying attention:
Large Transfers Over $10,000: One-time or structured transfers within 24 hours that total $10,000+ are flagged.
International Transfers: All international EFTs over $10,000 are reported to both FINTRAC and the CRA.
Frequent Business Transfers: Regular deposits that don’t match your declared income? Big red flag.
Suspicious Activity: Transfers from unknown sources, odd patterns, or unusual frequency could trigger a deeper look.
Think you’re flying under the radar? Think again. The CRA uses advanced data analytics to cross-reference bank data, tax filings, and third-party reports. If there’s a mismatch, you might be hearing from them soon.
How to Stay Out of Trouble
At West Wing Financial, we specialize in helping individuals and businesses avoid CRA headaches. Here’s what we recommend:
Track Every Transfer
Keep clear records of who sent it, why, how much, and when. Attach invoices, loan agreements, or receipts when possible.
Know What’s Taxable
Not all income is created equal. Selling old furniture? Probably not taxable. Side hustle deposits? Definitely something to discuss with a professional.
Avoid Sketchy Transfers
If you’re moving large amounts between personal and business accounts — or receiving regular payments from clients — structure things properly.
Consult a Pro
Whether you’re a freelancer, small business owner, or someone with complex finances, West Wing Financial is here to help. We offer personalized accounting, tax planning, and CRA audit defense — so you can transfer with confidence.
Don’t Wait for a CRA Audit to Get Your Finances in Order
If you’re unsure whether your e-transfers could raise red flags, book a consultation with West Wing Financial today. Our experts will help you stay compliant, optimise your tax strategy, and give you peace of mind. Let’s make sure your money works for you — not against you.