2016-12-15 00:00:00TaxesEnglishLearn the basics of the audit process and how to avoid problems when your business is audited by the Canada Revenue Agency.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/10/Accountant-Explaining-Worry-About-Audit.jpghttps://quickbooks.intuit.com/ca/resources/taxes/fear-free-taxes-never-worry-about-an-audit-again/Fear Free Taxes: Never Worry About an Audit Again

Fear Free Taxes: Never Worry About an Audit Again

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Audits are a normal part of business. The Canadian tax system is based on self-reporting and part of the Canada Revenue Agency’s mandate is to make sure all taxpayers are reporting truthfully and accurately. As such, the audit process is not to be feared as long as you keep good books and records.

Audits can be as simple as a written request for documentation or involve a visit to your business by a CRA auditor. In either case, you should treat the matter seriously, but there is no reason to panic. Be truthful, polite, and supply the requested documentation, and all should go well. If you don’t understand a request, clarify it with the auditor. Do not answer what you think the CRA wants to hear; you may do more harm than good.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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