What you should know about audits
Audits are an important part of the Canada Revenue Agency’s range of activities aimed at making sure the tax system is fair for everyone. During an audit, the Canada Revenue Agency (CRA) closely examines the books and records of a taxpayer to confirm whether they are fulfilling their tax obligations, following tax laws correctly, and receiving the benefits and refunds to which they are entitled.
Most taxpayers comply with the tax laws in Canada. The CRA’s auditing processes help these taxpayers better understand and meet their obligations, as well as help to maintain public confidence in the fairness and integrity of Canada’s tax system.
If your file has been chosen for an audit, Mankoo & Gupta, CPA Firm is ready to assist you.
Reasons for audits-
Personal Tax Audit: –
- Being Self Employed
- Any Big Changes or Big Expense
- Recurring losses
- Home Office expenses
- Travel expenses
- Meals & Entertainment exp
- Tuition fees audits
Corporate Tax Audit: –
- GST/HST Audit
- Payroll Audit
- Corporate Tax Audit
WSIB Audit: –
- List of Sub-contract Audit
Types of reviews
Our review programs include the:
- Pre-assessment Review Program;
- Processing Review Program;
- Matching Program;
- Special Assessments Program.
How does the CRA choose a file for an audit?
The CRA chooses a file for an audit based on a risk assessment.
- The assessment looks at a number of factors, such as the likelihood or frequency of errors in tax returns or whether there are indications of non-compliance with tax obligations.
- The CRA also looks at the information it has on file for the taxpayer and may compare that information to similar files or consider information from other audits or investigations.
How does the CRA do an audit?
What is the first step in the audit process?
A CRA auditor will contact you by mail or phone, or both, to start the audit process and tell you the date, time, and location of the audit.
Normally, an on-site audit takes place at your residence, your place of business, or at your representative’s office. The auditor will present you with a valid identification card upon arrival, and then start the audit. An on-site audit often allows questions to be addressed quickly and can minimize delays in completing the audit.
If an audit is not done on-site, it will take place at a CRA office. By Taking the authorization from Client we help our client and talk to CRA.
Role of Mankoo & Gupta, CPA Firm during audit: –
Mankoo & Gupta, CPA Firm, always ready to assist the clients. An audit is a very stressful process, where we help our clients to get relief. we are happy to take burden on behalf of our client. We have full capacity & knowledge to handle the audit with ease. Our important work is: –
- Talk to the client and understand the reason of audit
- Talk to the auditor as a representative
We collect all the paperwork and represent to auditor on behalf of client.
We not only help our client in audits, but also help our clients to reduce CRA audits- such as payments on time to CRA, Fulfill the remittance requirements on time in area the of GST/HST, Payroll, corporate Tax.