20 Jul CRA Audits
Have you recently received written notification from the Canada Revenue Agency (CRA) on your personal or corporate accounts?
As part of their letter campaign, the CRA will often conduct spot checks, react to inconsistencies in information provided, and focus on differences between your information and that of people you deal with. Many of these notices are random and will not always result in an audit of your records; however if your selection by CRA does result in an audit, here are five helpful tips to make the audit process run as smooth as possible:
- Contact your accountant: Your accountant is best suited to handle the audit in a timely and efficient manner. Make sure you contact them as soon as possible.
- Do not take a passive approach: If you have been contacted, it’s in your best interest to respond as soon as you can. Ignoring a reassessment or audit letter will escalate the situation quickly and could lead to significant interest and penalties being incurred.
- Be patient: This process may not be completed overnight – it may take some time, so patience is key.
- Do not feel you are being targeted: The CRA is doing their best to ensure that tax compliance has been met across the board and many audits are actually conducted at random and as such should not be taken personally.
- Right to object: Any CRA assessment arising from the audit is not a matter of fact. You always have the right to file an objection.
Keeping these tips in mind will help you stay proactive and informed while being audited – which will allow the process to go a smooth as possible.
This publication is produced by Andrews & Co. as an information service to clients and friends of the firm, and is not intended to substitute for competent professional advice. No action should be initiated without consulting your professional advisors.