Assistance With Revenue Canada Audits
An audit done on you by the Canadian Revenue Agency can be stressful but it can be answered by following a systematic approach to answering requests and an appropriate attitude about the process can reduce the challenge of the audit. The Canadian Revenue work on inconsistency between the data which you provide and the data cross checked with data which is provided by the people you deal with on paper. The key is reply promptly and supply all the information in dealing with the inconsistency in an upfront and prompt manner.
Audit formalities are provided by the Canadian Revenue to a person who is being audited through letter and told to keep all documents ready for the audit process. You may be required to provide all the information through receipts and bookkeeping records to the audit agency through one or more form of expenses such as medical expenses for the year and told to keep these records ready for further investigations.
Audits for such Canadian Revenue require that the audit will be done in the CRA offices or you premises at home or office. When required the auditor may require to backtrack through all information, if the audit is required for audit only in one area, the auditor may require records and receipts of all expenses for the given expense as has been claimed in the audit report or provide all information of audits in places of where you have spent, saved and recorded income for one or more areas.
Your records must show that you have included and declared all income and all your expenses must be documented with receipts that have a reference to how they were paid, such as a cheque number, a bank reference or a note that they were paid by cash. The auditor does spot checks to see if the records are internally consistent and may investigate in depth if records don’t match. You may have to obtain additional documentation from the bank and from other people you dealt with if your records are incomplete.
An audit often identifies issues that the auditor wants addressed. You may have revenue that the auditor believes is income or you may have claimed expenses that the auditor believes are not justified. On the expense side, you may have claimed car expenses that the auditor thinks are too high. You have to able to show where you went, for what purpose and why you believe the expenses are deductible.