Category Archives: tax audits

Guide To Represent the CRA Tax Audits

Commonly, the CRA tax auditors are coy about while being asked, while they would tell you that the system chooses the tax return for thorough statistical analysis or for random review. But you should not be fooled. CRA tax audits have different options of choosing the returns and random selection is quite easy, in case used ever. CRA wants to make sure that the audit resources are used effectively and also have different types of tactics to target all the high potential taxpayers.

Dealing with the tax audits

It is not a good idea to deal with the tax audits by your own. It is because CRA uses different types of accounting and tax terms that you may not understand completely. In vase CRA contacts you, and then there are high chances that they will think that you either owe them money or you have done something wrong. Never meet with CRA alone. So, if you have contacted by CRA for the purpose of an audit or a review or have CRA issues, then you must consult with a tax audit expert. Audit representation is quite cheaper than the tax bills, which the CRA may present after ripping the records apart.

Guide to deal with the CRA tax audits

 

  • In case you receive a call from CRA, then don’t answer any questions. Rather request to send a letter mentioning all the details of tax audits that they want along with the name, who is requesting.
  • Never submit any original document to the audit. You will find in the CRA audit manuals that copies of the documents are acceptable as well.
  • Always review the business records properly before allowing the CRA to see those. This thing will ensure that all the personal non-business records are removed from the business records.
  • Before you submit the records, make sure that those are properly organized. This will make the process of review easy.
  • Never assume that the CRA is unbeatable and correct.

Appealing and objecting

 

  • In case you disagree with the CRA tax audits outcome, then you can re appeal for the assessment of the audit or can object
  • Appealing and objecting will not make that outcome worse. It is not possible for CRA appeals to increase the assessment amount
  • To be successful in the appeal, you should argue some valid points or offer some additional documents, which can prove how the auditor has misapplied the tax law.