Let our team stand by your side and advocate for you with the CRA. Our experienced CPAs will champion your best interest, providing top-tier CRA Audit Support.
Explore our services and let us be your trusted partner in achieving the best possible outcomes and ensuring tax compliance during CRA inquiries.
TMP’s primary objective is to hold CRA agents accountable, ensuring that all pertinent facts are thoroughly considered to guarantee unbiased judgments. We are committed to interpreting the Income Tax Act equitably and to your advantage.
The Canadian Tax system is based on a self-assessment principle, meaning filings are sent to the CRA without back-up documentation. Then the CRA has the right to request proof of any claims made, which is most commonly referred to as a “tax audit”. Our expertise in CRA Representation and Audit Support ensures that your filings withstand scrutiny and support your claims effectively.
The CRA will conduct an audit based on risk assessment. This assessment looks at a number of factors such as the likelihood or frequency of errors in tax returns or whether there are indicators of non-compliance with tax obligations.
If your return is deemed as high-risk, a CRA officer can request you to provide supporting documents to substantiate amounts reported on your tax return.
When the CRA conducts audits, the responsibility falls on you to substantiate any claims you’ve made. If you cannot provide the necessary evidence, the CRA retains the authority to assess or reassess your filings based on limited information available to them. In the instance where deductions you claimed are disallowed, you will be held accountable for the resulting tax increases.
While you have the option to represent yourself or your company during an audit, we strongly recommend having at least one knowledgeable representative on your side. This ensures the development of a strategic approach to present information and effective communication with the CRA agents, reducing the risk of misunderstandings and additional scrutiny.
Based on the subject and scope of audit the CRA can check your books and records, source documents such as contracts, agreements, bank statements, invoices and tax receipts. They can also ask for contact information of employees, vendors, suppliers and customers.
A CRA audit is a review of your financial and tax information to ensure compliance with Canadian tax laws. You might be selected for an audit randomly, based on specific criteria, or due to red flags on your tax return.
The CRA auditor will review documents and information collectively referred to as “records,” which encompass various items, including but not limited to ledgers, journals, payroll records, invoices, tax receipts, contracts, and bank statements
To prepare for a CRA audit, organize your financial records, keep accurate documentation, and consider seeking professional assistance. Review your past tax returns to identify items that can attract CRA attention, such as large deductions/tax credits claimed.
The duration of a CRA audit can vary depending on its complexity. There is no maximum timeline provided by Revenue Canada.
Common triggers include inconsistent or incorrect information on your tax return, large deductions, significant changes in your financial situation from the prior years’ tax returns, or referrals from other government agencies.
A desk audit is conducted through correspondence and document submission, while a field audit involves in-person visits from CRA auditors to your place of business or residence.
You have the right to be informed, represented, and to appeal the results. The CRA must provide you with a written explanation of audit findings and allow you to contest them.
You can file a notice of objection with the CRA. If your objection is not resolved, you can appeal to the Tax Court of Canada.
Yes, in many cases the review/audit letter allows an automatic 30-day extension upon request. Any further extension is unlikely and is subject to CRA discretion based on the reason for the extension. It’s essential to communicate with the CRA as early as possible.
Penalties and fines may be imposed for tax evasion or misreporting. It’s essential to cooperate with the audit process to avoid penalties.
The CRA can generally audit tax returns for the past six years. However, in cases of fraud or misrepresentation, they can go back further.
Consider correcting errors by filing an adjustment to your tax return using Form T1-ADJ. You may also consider using the Voluntary Disclosures Program (VDP) in conjunction when eligible.
Yes, you can negotiate a payment plan with the CRA to settle your tax debt over time. They are generally open to reasonable payment arrangements.
Avoiding errors/irregularities on your tax return can reduce the risk for a CRA audit. While claiming losses/tax deductions/credits can increase the risk for a CRA audit, keeping meticulous records to support your claims can make you well prepared when an audit does come.
Personal audits focus on an individual’s tax deductions and credits, while business audits scrutinize a company’s financial records, including income, expenses, and tax credit claims.
You can find more information and resources on the official Canada Revenue Agency website, or consider consulting with a tax professional for guidance on audit assistance.
$500
$1,500
$2,500