The worst dream of any firm or individual is to get audited by CRA officials. There can be many reasons for it. Whether it’s you’re wrong filling of taxes or tax return, or any other error. For many individuals who are facing this for the first time and don’t know anything about it always think about what to do in a CRA tax audit?
Read this article for a better understanding of CRA and what you should do if you get stuck in one.
What triggers a CRA tax audit?
CRA or Canada revenue agency has there ears and eyes everywhere. And they will not miss a chance to audit you if you are on their suspect list. Thus you should know what can trigger a CRA tax audit and should be careful accordingly. Read the following points to know what can cause a CRA tax audit for you:
Unusual change in credits: There is a huge chance of a CRA tax audit if you have a significant claim of more credits or deductions than the previous year. But if you have the perfect records to prove your innocence then you are safe and don’t need to worry.
Income that is not reported: Showing less income than you actually made or anything like that can trigger a CRA tax audit. To know this CRA has many tactics. Like for example they gonna compare your income with your neighbors or the area you live in. Thus if you are showing less income than your neighbors then you can be on the suspect list.
Unusual business expense: Having an unusual business expense will also raise an eyebrow of the CRA and you can experience a possible visit by them. You are self-employed or have a small business, then be careful with your business expense it should not be excessive which can trigger a possible audit.
Being self-employed makes it very much possible for you to get on the suspect list of the CRA Toronto, thus maintain all the necessary records and other details to ensure your safety.
Be careful and always try to avoid a CRA visit, handling them is no joke and its nightmare for some people. You can contact us for getting legal help if you ever get your name on a CRA tax audit.
Canada’s tax system is working for the benefit of the citizens of the country. The auditing processes help to maintain public confidence with fairness and integrity so that the trust of the people is always kept in the government rules.
You can always visit the RC Financial Group next time you are getting audited by the CRA. We will make sure you are prepared and able to handle the CRA with ease, our professionals are experienced enough to advise you for this and make you prepare to handle any audit like situation.
5 tips for surviving a CRA tax audit
Maintain good records: Good records are very necessary if you want a smooth and favorable audit for you. Your records will speak for you in all manner. Your records help the CRA in their audit and also a good record will put a good impression as it makes everything crystal clear.
Have knowledge: Ask them which records are required or what taxation year is under review. This will help you to understand better the situation. You will get a huge CRA Audit Tax Help when you have prior knowledge of tax rules and laws.
Humble and professional: Don’t try to to be over-smart or disrespectful towards the CRA accountant. Always be humble and professional in the way you talk. If you would be rude then this behavior will only backslash you in a very negative way. Also, find a CRA audit tax help by hiring a professional Toronto Accountant.
Set up your reactions as a written record: If the evaluator poses confounded inquiries that require judgment, give those reactions to the CRA tax audit recorded as a hard copy to make a record of your reaction.
Take advice from a professional: If you know that you might get audited soon by the CRA then its best you get yourself the best CRA Tax Audit help for you. Then you will be prepared to handle them and protect yourself from any possible harm.
At last, always hire a professional tax specialist so you are 24/7 ready for any tax issues. Go to RC Financial Group for hiring such professional tax audit services.