When clients are audited by the Canada Revenue Agency, one of the first questions they ask is “Why me?”
Generally, CRA Auditors are coy about the subject when asked – they will tell you that the “system” selects your tax return for review randomly or through statistical analysis. Don’t be fooled. The CRA has many ways of selecting returns for audit, and random selection is rarely, if ever, used. CRA wants to ensure it is using its audit resources effectively, and have a number of tactics to target “high-potential” taxpayers.
Do you want to know the real reason why you may be selected for an audit? Read the following article from Gowling’s December 2013 newsletter Top Ten CRA Audit Flags:
If you are currently facing an audit of any kind (payroll, GST, or Income tax) or if you are concerned about errors in your previous tax filings, please call us. We can help. The earlier we are involved in the audit process, the better we can help you deal with CRA and reach a resolution that is fair to you and your business.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation, please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your particular circumstances.