Canada Corporate Tax Audit
Canada Revenue Agency treats taxpayers differently
Filing your income return, whether individual or business is sometimes confusing and outright frustrating especially if you do not have a background in accounting or even bookkeeping. If you have not done any bookkeeping before, first time filing of returns can be confounding. One can suffer apprehension when trying to accomplish the form for the first time. There were numerous items to be filled-up, data you need to supply, and there may be some financial documents you need to provide.
And there is always a chance of making a wrong entry that could cause you penalty fees. An alternative way to going about your financial documents is to consult Canada revenue agency. They are knowledgeable in revenue laws, and they are familiar with the kind of forms to accomplish based on your bracket income. Make sure that you provide them with your complete financial records, acquisitions, expenditures, insurances, list assets, properties and cash on the bank. They may also need the number of dependent children of minor age that you support.
The information you provide will be the basis to process the compiling, categorizing, calculating, auditing and tabulating items and identify deductions applicable to you. Using relevant information to determine whether processes comply with laws, regulations, or standards. He can explain to you some technical terms that you need to know when filling out government forms. Canada revenue agency tax help can make your work more simple.
The Canada Revenue Agency performs thousands of audits on Canadian taxpayers annually.
This can occur for some reasons:
- One of your customers or suppliers may have been audited, which triggered an audit on you.
- You declared a lot of expenses, more so that your industry should call for.
- Someone may have reported you to the CRA snitch line.
- You may have contributed to a charity or tax shelter that is being investigated.
There are so many things that can trigger a CRA audit, and the CRA has a lot of power. Here is what to expect.
1. The CRA may ask you to complete financial disclosure statements to prove that your expenses far exceed your declared earnings.
2. The CRA may want to conduct the audit at your home or place of business to see how much office space you have and so that they can quickly demand your records onsite.
3. The CRA could contact or even audit your customers and suppliers to prove discrepancies within your returns.
You may think you have kept clean records so you will fare fine in a CRA audit. You may not have good records and are worried. No matter what "you think", you should not directly engage the CRA if you have received notice of an audit and seek a professional opinion for CANADA REVENUE AGENCY TAX AUDITS.
The first thing you should do is gather your records and have a chartered accountant perform an independent review of your returns. Expert says independent because if the CRA suspects that you have erred in your returns, it may be because your previous accountant made a mistake. An independent review will ensure complete transparency and that if there are mistakes, you are aware of them. Their ar a lot of BUSINESS GETTING AUDITED BY THE CANADA REVENUE AGENCY.
There is no doubt about it. Canada Revenue Agency audits are a stressful ordeal. However, they really don't have to be. If you keep your books in order and follow the rules and regulations of the Income Tax Act, you should have nothing to worry about. If you are sure that you are maintaining proper records, deducting legitimate expenses, and claiming all of your income, then there is nothing to worry about.
There are a few strategies that you can put into play to help you get through the audit with as few scars as possible. People have utilized all of these tips at some point and have found them to be quite effective. It is advisable that GETTING AUDITED BY THE CRA for quality work.
Have your accountant deal with the auditor: If you have an accountant, your best bet is to let him or her deal with the auditor from start to finish. If possible, have them conduct the audit at their offices. Auditors will want to see the premises, but only have them do this when your accountant is there. The less contact you have with the auditor, the better. It's amazing how they can fish for information while you think you are just having a normal conversation. Be careful. However, if you don't have an accountant or would rather deal with the auditors yourself, these tips should come in handy when any auditors wish to pay you and your books a visit.
Answer questions at the end of the day: Don't make yourself available to the auditor every time he or she has a question. Tell them you will put aside some time to answer them. Try to make arrange it so the time to answer questions is at the end of the day. Remember, auditors don't like working extra hours. That being the case, this question period will be short, and the likelihood of additional questions being brought up are reduced substantially.
Schedule meetings for late Friday afternoon: For the same reasons, try to schedule meetings with an auditor late Friday afternoon. You will be surprised how quickly these meetings go. Better yet, schedule a meeting for late in the day, and make sure you are a little bit late for it.
Give auditors only what they ask for: On a typical audit, the auditor will provide you with a list of the documentation they require. Don't make the mistake of giving them everything you have. That will only ensure that they go through all of the information and end up assessing you for something they find that they may not have been looking for.
Seek a chartered accounting firm that specializes in CRA audits. A good accountant will arrange it so that the CRA PERSONAL TAX AUDIT takes place at their office and not at your home or business. The review will also be supervised. Finally, audits can be very stressful. Making the right decisions to prepare yourself for an impending CRA audit will enable you to face your CRA auditor with confidence and a plan.