More Canadian business owners and individual taxpayers are turning to general-purpose artificial intelligence tools like ChatGPT for help with bookkeeping and tax questions.
Financial professionals say that growing reliance, however, may be creating a dangerous mix of mistakes, misplaced confidence, and potential trouble with the Canada Revenue Agency (CRA).
Why AI tax models are problematic Dext, a bookkeeping software company, recently conducted a survey of 500 accountants and bookkeepers across Canada.
It found that, in 2025, 76% of accountants and bookkeepers reported an increase in business clients using large language models for tax or bookkeeping guidance.
They also reported routinely finding errors as a result. The errors cover a wide range of core financial tasks. According to respondents, the most frequent problems involve:
- Misinterpretation of business expenses (44%)
- Incorrect tax claims or charges (43%)
- Faulty personal tax planning (36%)
- Payroll errors (35%)
- Incorrect business tax planning advice (35%).
Fixing those issues takes time and money. Accountants report productivity losses as they untangle avoidable mistakes. Businesses and individuals may face higher bills to correct filings and financial records.
Risks outbalance reward
Financial costs are only part of the concern.
Dext’s survey also found that:
- 27% of respondents believe increased AI misuse could raise the risk of insolvency or business failure.
- 42% anticipate more people using AI-generated information to support inappropriate or fraudulent claims
- 40% forsee a rise in fines and penalties
- 38% expect greater CRA scrutiny tied to incorrect or late filings
“There’s always risk of errors posed when you’re using generative AI tools for things like calculation and automation,” said Melissa Robertson, principal, research and thought leadership at CPA Canada.
Robertson stresses that any AI-generated output must be carefully reviewed — a task that becomes harder as transaction volumes grow. She says businesses need structured checkpoints to confirm what the tool is doing, followed by a thorough review of the final work.
The risks are not limited to companies. Individuals face similar exposure, regardless of the type of tax or accounting question involved.
Too good to be true?
“I think there’s a lot of overpromise in what some AI tools can do right now, and there is a lot of risk when organizations just take those tools at face value,” Robertson says.
Ryan Minor, the CPA’s director of tax, notes that AI can help locate documents, but it doesn’t always pull the most up-to-date information reflecting the CRA’s current positions.
He advises users to go directly to source materials before acting on any AI-generated guidance.
“If you’re not in the industry and you don’t have a hunch what the answer would be, you may be misled,” Minor said.
While much of the information can be directionally accurate, it often lacks nuance, doesn’t apply to the client’s specific situation, or confuses U.S. and Canadian tax rules.
The appeal is obvious: instant, free answers in areas where professional advice typically comes with a fee.
But the results depend heavily on how well users frame their questions and their own foundational knowledge. And even then, important details can be missed.
Avoid the AI tax dangers
Protect your credibility and your finances by taking a secure, proactive approach to your taxes. We highly recommend speaking with an industry professional to avoid critical errors that could cost work, time and money down the road that outweigh the immediacy of AI systems.
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