Our clients always ask us how likely it is to be audited and why does the CRA conducts Audits. There are mainly 2 reasons why CRA audit you. The first is through a random selection and use of a statistical tool to randomly select you for an audit based on probability. The second way is through a target selection process based on a number of criteria such as:
CRA Audits can be stressful, time-consuming and can create unnecessary hardships. The audit by CRA is a process wherein the CRA would closely examine your books and records to confirm whether you have correctly fulfilled your tax obligations, followed the tax laws correctly, and received the benefits and refunds to which you are correctly entitled to.
SDG Accountants has been representing clients and providing Tax Audit Support across Canada successfully before the CRA for many years. Choosing the best tax firm to represent you to the CRA is very important as a wrong disclosure of the information is given during the time of an audit can go against you and can have a major financial impact.
The CRA chooses a file for an audit based on a risk assessment such as the likelihood or frequency of errors in tax returns or whether there are indications of non-compliance with tax obligations.
CRA during an audit may examine books and records, documents, and information (collectively referred to as records) for example filed tax returns, credit history, property details, business records (such as ledgers, journals, invoices, receipts, contracts, rental records, and bank statements), personal records (such as bank statements, mortgage documents, and credit card statements), personal or business records of other individuals or entities not being audited (for example, a spouse or common-law partner, family members, corporations, partnerships, or a trust [settlor, beneficiary, and trustee]).
After the auditor examines the records provided either a correct assessment will be issued i.e. you do not owe any taxes or there will be a situation where you need to pay taxes or are entitled to a refund. You will have 30 days to agree or disagree with the proposal.
If you disagree with the proposal, you are encouraged to contact the CRA to explain why you disagree and provide any other documents that support your position.
Our team of experts can help you with the below Tax Audit Support:
Proper documentation and strong evidence are the keys to putting across your points to the CRA. A CPA Firm doing a tax audit can help in sailing through this challenge. However, if you come across the fact that any tax errors have been made that need to be resolved, we provide the support to correct them. We will ensure accuracy and proper source documentation papers with your records to satisfy the CRA Audit.
Get in touch with us now if you feel you can be audited, or you have received any notice or an information request from the CRA. SDG Accountant has been assisting clients with audit proceedings and has represented many clients successfully. Call us at 416-755-3000 or e-mail us at [email protected] for CRA representation and audit support.
With our ability to decipher and resolve complex tax and accounting issues and proactively engage with our clients, we are a one-stop-shop accounting firm in Toronto. Please contact us directly at 416-755-3000 or by emailing us at [email protected] to book a consultation if you are looking for a competent corporate tax accountant Toronto to handle your business or corporate income tax return.
Office Locations
2 Bloor West Suite 1900, Toronto, ON M4W 3E2, Canada
Phone Number
Canada Office: + 1 (416) 755-3000
USA Office: +1 (727) 367-1040
Fax Number
Office: + 1 647 - 946 - 4172
Email Adress
[email protected]