Want to Prevent a CRA Audit? Follow These Tips
Whenever the CRA finds a discrepancy with the submission of a tax return by a taxpayer, the nightmare of the latter translates into a reality – the officials of the CRA turn up for carrying out an audit. And though it may not always spell big trouble for a taxpayer, it can be difficult for them to justify their point, especially if they are caught unprepared.
The reasons for an abrupt CRA audit may vary from simple to complex. Generally, the tax officials in Canada show up for an audit when there is some sort of inconsistency in the tax filings when compared year on year.
For example, if you show an unusually low income in your income tax returns for a given year against your income in the previous years, it may catch the attention of the CRA. However, as long as your case is genuine i.e. it does not involve any fraudulent practice, you need not worry. Getting away with false information is nearly impossible as the CRA keeps an eye out for the earnings of taxpayers, regardless of whether they are self-employed or work in a company.
While there is the provision to penalise an individual for falsification of information or tampering with their financial data, engaging in such practices in multiple instances can lead to an even severe penalty. If you ever run out of ideas, it is a good idea to consult a CRA tax consultant of approach a company which provides assistance in this regard. We provide a wide range of services related to taxation in Canada, including CRA tax remediation and appeals in North York Ontario.
When it comes to the filing of business statements, declaring both profits and losses with accuracy is necessary. Apart from promoting transparency, it lends credence to the tax report filed by an individual in the eyes of CRA officials.
The intricate details of CRA taxes and provisions even beat the experts. Minimize the chances of a tax discrepancy and a CRA audit – contact us now!