It’s hard to imagine anything more stressful than a CRA tax audit of your business.
No matter how good (or not-so-good) your books might be, a CRA tax audit can be among the most expensive costs of doing business.
As a former CRA auditor, I know how the system works and can help you navigate every step of the way.
CRA auditors’ job ratings depend on how much tax they assess — and how many audits result in assessments.
What’s more, this practice extends higher up the ladder. For example, the CRA bases its executive bonuses on how well the audit programs achieve their “targets.”
All of this can make it even harder to take on the CRA. That’s why it’s always best to have an expert on your side.
While most auditors are reasonable, they are under pressure to produce. After all, your audit is just 1 of 23 others they perform each year. And that can open the door for mistakes.
If you find an error on your audit, you may still have time to correct it. You have three months to want to appeal your assessment, though in some cases, the timeline can be extended to a full year.
During a CRA tax audit, an auditor may ask for more information than they need, even though CRA has pledged only to request the minimum amount required to do its job.
As a business owner, dealing with an auditor and their questions is the last thing you want to do. That means you need someone to be the go-between. And what better than a businessman and former CRA auditor?
A CRA tax audit can seemingly come out of nowhere, leaving you asking this question and wondering where you went wrong.
But the truth is, you might not have done anything at all. The CRA could select you for an audit for many reasons.
For example, the Business Intelligence Unit (BIQA) has recently started assigning audits and instructing auditors to assess specific things in addition to income tax and GST. This change increases your risk of an audit, even if you fully comply with the law.
A CRA auditor will typically call you to notify you about an upcoming audit. However, sometimes they send a letter without calling first. Once you receive the letter, call Gateway Surrey for a free consultation.