Are you one of the Canadians most likely to get a tax audit this year?May 8, 20172 min read
Every year, Canadian taxpayers fear the worst - a notice from the Canada Revenue Agency (CRA) informing you that you’re going to be audited.
You should always prepare and file your income tax return under the assumption that your return will be looked at and scrutinized. The reality is, there very few are actually checked by the CRA - but that does not do you any good if you are the one.
Apart from a random selection process there are many reasons why your return might be pulled for review or audit. If this is the case, the best advice we offer is to get your accountant involved immediately. Far too often our clients will start the process alone, answering a few questions that they think are simple and straightforward only to find they have simply provided the auditor with reasons to further pursue his or her review of your taxes. This is not to suggest that the questions are misleading. We are simply pointing out that you might not be aware of the implications of your answers and you can do yourself a disservice by providing an answer that simply leads to more questions.
If you have prepared your return yourself go over it with a professional as soon as you receive your letter from CRA and let that individual deal with the CRA representative going forward. If you used a professional to prepare your return - get them involved immediately.
Michael Burch is a managing partner at Welch LLP in Ottawa and is an expert in the fields of business, corporate/personal taxation and finance. He is an excellent speaker and is available to talk with media regarding this important topic. Simply click on Michael’s icon to arrange an interview.
Micheal Burch FCPA, FCA, CFP, Managing Partner
Family Wealth Advisory Group, Associate