An audit or review from the Canada Revenue Agency (CRA) can be an intimidating and stressful experience for most taxpayers.
At Filing Taxes, we are proud to offer specialist CRA Audit/ Review support in Toronto, Mississauga, and across Canada.
We work with individuals and businesses in various industries to navigate the complexities and nuances involved in receiving tax audits and understanding CRA audit triggers.
With an increasingly strict and frequently evolving regulatory environment, having a steadfast partner to navigate the intricacies of CRA audit or review is a strategic advantage.
Overview: What is CRA Tax Audit or Tax Review
When the CRA conducts a business audit, they will want to examine your books and records to ensure that you have complied with legislation and received the exact amount to which you are entitled. If, after conducting the audit, the CRA decides that your return must be reassessed, your tax return will be amended.
CRA Tax Review – A tax review is a request for additional information if the CRA finds discrepancies in your tax return. The CRA may send you a Notice of Reassessment or call you asking for details about your business account.
CRA Tax Audit – A CRA Tax Audit is a detailed examination of your books and records to determine if you have fulfilled your tax obligations. If the CRA is not satisfied with your response to a tax review, they can audit you up to six years after issuing a Notice of Assessment or at any time if they suspect fraud.
CRA Audit Triggers: What Triggers the CRA Audit?
Every year CRA randomly selects tax returns to review or audit. The CRA holds the power to audit-or place under inspection- any individual or business’s financial information and tax claims. The CRA would never explain the reason why they selected your business. This scenario is one of the main reasons why filing your taxes is important. It’s crucial to ensure that your bookkeeping and accounting are up to date before the CRA inspection begins.
The Canada Revenue Agency uses various criteria to determine who will be subject to a CRA audit. CRA audits are risk-based, meaning that the CRA will go after categories of taxpayers they believe to be at higher risk of tax evasion.
No matter what the agency’s reason for examining your financial accounts is, you can sail through the audit process with our experienced Professional Accountants by your side.
CRA Audits Assessment Process
CRA audits in Canada will assess your previous personal or business tax filings to determine if there are any discrepancies. Personal CRA audits may include reviewing bank statements, mortgage documents, and credit card statements, while business CRA audits typically involve invoices, employee payroll information, GST/HST, and any business-related statements.
Always hire a professional tax accountant to help you with an audit right from the start so that you stand the best chance of avoiding a reassessment or limiting its impact.
What Common Mistakes Do Taxpayers Make During a CRA Audit or Review?
The biggest single mistake is to deal directly with the auditor instead of through a professional tax accountant, GTA. The CRA auditor will take notes of every statement made and will sometimes accidentally or deliberately get the information wrong.
If you are being called for a CRA audit or review – Don't Fight with The CRA Alone!
Our Assistance During Each Stage of The CRA Audit or Review
We have developed a plan of action to assist you at each stage (phase) of the CRA tax audit/review. The following are some of the activities we perform during our audit assistance engagement:
Why You Should Consider CRA Audit Assistance
In the event of a tax audit, the onus is always on the taxpayer to provide proof of self-reported income and deductions claimed. It’s quite overwhelming for individuals and businesses to go through a CRA audit or review on their own. During a CRA tax audit, it’s crucial to have professional tax assistance from an accountant with a history of representing clients during audits by the CRA to help navigate the process.
An accountant provides valuable help in organizing financial records, responding to CRA inquiries, ensuring that all information presented is accurate and compliant with tax laws, and perhaps most importantly, ensuring you do not say or do anything that makes your situation with the CRA worse.
Why You Should Consider CRA Audit Assistance
In the event of a tax audit, the onus is always on the taxpayer to provide proof of self-reported income and deductions claimed. It’s quite overwhelming for individuals and businesses to go through a CRA audit or review on their own. During a CRA tax audit, it’s crucial to have professional tax assistance from an accountant with a history of representing clients during audits by the CRA to help navigate the process.
An accountant provides valuable help in organizing financial records, responding to CRA inquiries, ensuring that all information presented is accurate and compliant with tax laws, and perhaps most importantly, ensuring you do not say or do anything that makes your situation with the CRA worse.
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