CRA Tax Audit Compliance Service
Why the CRA audits the business books of accounts to verify taxable income reported in income tax return filing?
Randomly, The Canada Revenue Agency (CRA) requests a taxpayer (an individual or business entity) to provide supporting documents to examine the taxable income or the reported deductible expenses in the income tax return. CRA verifies the business books and transaction records to agree with the amounts filed in T1 or T2 income returns. At that point, the taxpayers might provide a copy of invoices claimed as a tax-deductible expense.
The CRA wants to ensure that the taxpayers pay the correct amount of taxes or receive eligible tax refunds as it is entitled by the taxpayers. CRA representative auditor or office wants to ensure compliance with tax laws in Canada and helps to confirm the fairness and integrity of the Canadian tax system.
If you have been chosen for a CRA audit (as an individual or business entity) here is the process you need to follow.
What is the process of selecting a file for audit by the CRA?
The CRA’s risk-assessment systems recognize income tax returns files that have a higher chance of non-compliance. If your file has been recognized as high-risk, a CRA representative will review the details of your income tax return and verify from many available sources to identify whether an audit is required to deal with the risks determined.
You might receive an email or phone call from the CRA office to precede with the CRA audit requirements, they might ask you to provide few supporting documents. The CRA auditor will conduct the audit at your place if a more detailed audit is required.
The CRA auditor might ask you to provide the record of your ledger, invoices, contracts, bank statements of expense receipts. You could provide this record electronically. The CRA audit process might last longer than you expect at the initial stage. However, it depends on how quickly you respond to this CRA officer’s audit query.
Upon completion of the Audit, the CRA would provide you a written summary of the audit process and the finding report for your record purpose. Here you might need to make changes to your income tax return and resubmit your income tax return after the CRA audit report. There are 30 days window to respond to the CRA audit report if you got a disagreement with the CRA auditor’s report.
You have a right to file a complaint in case you are not satisfied with the information included in the CRA audit report and it is not resolved with your communication with the CRA officer.
At VanTax Accounting, we have been addressing the CRA tax audit problems with incredible outcomes for Canadians as their professional Tax obligation Reps. Our clients will tell you that we are far more than just TAX professionals, we are your representative when taking care of the Federal government, and also the negotiator you want on your team.
As your representative, we recognize and also take extremely seriously our professional responsibility to care for your benefits. Our objective is to save you much more bucks than our costs. The initial assessment is cost-free and also if we don’t firmly think that we can fix your issue, we will not charge you hefty fees.
Our team believes in an ethical company. All things need to be fair, straightforward as well as reasonable. We only sustain helping clients attain goals that are really to their benefits. We will certainly decrease to accept their business if a client wants to involve in bad risk management or techniques that are socially incorrect as well as we do not sustain the customer’s goals.
