Audits can be a stressful and intimidating time for Canadian taxpayers.
If you find yourself facing an audit from the CRA, no matter if the audit is large or small, contact us right away so that we can step in and take lead to work with the CRA on your behalf until the situation is resolved.
We will take over the entire process so that you only work with our professionals while we work with the CRA to resolve the issues at hand.
Liu & Associates are available to provide assistance and consultation when it comes to personal tax audits.
How do Personal Tax Audits Work?
An income tax audit is an examination of a tax return performed by a member of the Canada Revenue Agency (CRA).
The examiner makes a line-by-line assessment of your tax return and, if something seems off or doesn’t add up, you will be asked to correct the return or justify your claim.
Depending on the results, you may end up owing more in taxes.
This is why it is important that you keep organized and concise records of your income and expenses as well as all tax forms and qualifying receipts.
Even though most taxpayers comply with Canada’s tax laws, the CRA issues audits in order to make sure the tax system is fair for everyone.
Audits can be stressful for Canadian tax-payers, contact us so that we can step in and take over this process for you.
Audit Assessments
As a part of our tax and audit services, our CPA’s will confirm and double-check all of your personal tax assessments done by the CRA.
These assessments include your “Notice of Assessment” (NOA) which is a document issued by the CRA outlining your tax assessment summary as well as other important information.
Your NOA will include key line numbers and reported amounts.
Errors on your NOA can occur. Let our accountants take a look to determine if an error was made, such as forgetting to include important expenses or reportable income, and if any adjustments need to be reported.
Audit Preparation
If you have been selected for an audit by the CRA, there are certain preparations you need to make.
We can step in and make step by step plans to organize the information, prepare it for submission and work with CRA until the audit is completed.
The first step in preparing for an audit is a proactive one: Keep good records. It may happen that you are never audited by the CRA but, if you are, you want to make sure you have all necessary information organized and accessible.
If you don’t have organized records of your finances, it is advisable that you consult an expert accountant to recreate your records as accurately as possible. Liu & Associates can help you track down and organize your financial records.
The next step is to allow us to step in and prepare your submission to the CRA and work with the CRA agent until all the issues have been addressed and the audit is concluded. Our goal is your best interest.
Contact us today to find out how!
Audit Appeals
It is always possible to appeal a personal tax audit. Should you believe there has been an error with the CRA’s assessment, Liu & Associates can represent you during the appeal.
Should you wish to appeal the decision to the Tax Court of Canada, you have 90 days from the date of notice to do so. Once we take over your file, Liu & Associates will file the necessary Notice of Objections and prepare your case for appeal. We will work for you with the CRA until we reach the best result possible.
How to Avoid a Personal Tax Audit?
YOU CAN’T AVOID AN AUDIT, BUT YOU CAN ALWAYS BE PREPARED FOR ONE! The key to navigating an audit successfully is keeping your books and records well-organized.
Here are some tips to be alway prepared:
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- Document and support any changes made to your income tax return.
- File all of the information from the slips (i.e. T1) you receive.
- If the CRA questions your return, provide all necessary receipts and related documentation.
- Be accurate and reasonable when it comes to deductions (especially when you work from home).
- Do not claim the entirety of your vehicle if it is also used for personal use.
- Report any cash or trade you receive in exchange for services.
By accurately and carefully providing all necessary information on your income tax return, you will always be ready for an audit.
Let Us Take the Lead of Your Situation
Once we are familiar with your needs and the specifics of the situation, our tax professionals will work with the CRA on your behalf in order to resolve the situation quickly.
We will be your go-between and buffer so you can feel less stressed and focus on helping the process and focus on your work or business.