![]() It’s not very scary and if the taxpayer has good records that shouldn’t be a challenging exercise.” “Someone sitting at a CRA office might just flag a taxpayer’s moving expenses, that’s something they tend to look at along with the deduction of legal fees. “We call that process a desk audit,” he explains. There are times when an auditor might really be just looking to confirm certain expenses and it’s not uncommon for individuals to be double-checked. Can I come in and look around?’ you can actually say, ‘No you can’t - go get a search warrant.'”Īccording to Sorensen, there are two kinds of audits. “If someone came knocking on your door, and said ‘Hi, I’m from the CRA. They can’t show up at a dwelling … and enter without a person’s consent,” says John Sorensen, a partner at law firm Gowling WLG. ![]() ![]() “I have never seen an auditor just appear out of the blue. In the extremely unlikely event that he or she does, you don’t have to talk to them. An auditor from Canada Revenue Agency isn’t going to come to your house. Under the Income Tax Act, you can be audited at any time in cases of fraud or misrepresentation, or at any time up to four years after the date of mailing the original assessment.īut it’s not how it looks in movies. Either way, here’s what happens when you actually get audited.ĭuring an audit, the Canada Revenue Agency (CRA) closely examines books and records of small and medium-sized businesses to make sure they’ve filled out their returns correctly and applied the law appropriately. In March, we told you what to do to make sure you don’t get audited this tax season.
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