What Does The CRA Audit Process Entails For A Business?

What Does The CRA Audit Process Entails For A Business?

As a business owner, especially of a small or medium-sized organization or as an individual contractor, you are more likely to be audited by the CRA. So, along with being prepared by hiring an accountant or relevant services, having a clear idea about what the audit process entails will help you to handle things better. Searching the internet will be quite helpful to gather information on CRA Tax Audits, Problems & Representation in North York Ontario, as there are thousands of websites which will provide the required information. All you need to do is go through the site and the information it is providing.

Details Of The Process – During this research process you will come across the following information describing the steps of CRA tax audit, and they are:

  • The audit process is crucial to the CRA or Canada Revenue Agency
  • The aim of this process is to create a fair tax paying system for the citizens
  • The audit will commence when the CRA auditor contacts you through phone or email or both and inform about the audit to be taken place
  • The representative of the concerned authority will inform you about the date, time and place of the audit
  • The on-site audit takes place at your home or business or at the office or your representative
  • Upon arriving, the auditor will provide a valid ID and then start the audit
  • During the audit, every book and record of the taxpayer will be examined closely
  • The audit process includes checking the books along with asking questions
  • If the audit is not on-site, then it will happen at the office of the concerned authority
  • If you are assigned an auditor and he/she is situated outside your region, then he/she will ask you to either bring or electronically send the supporting documents
  • It is possible he/she will borrow some of the documents but only after informing you and providing relevant receipts with the promise of returning them as soon as they can
  • During the audit, all your financial records including both business and personal will be checked thoroughly and along with the records of your family members, if required
  • If the auditor is satisfied, then the audit will be closed and you will receive a completion letter
  • If the auditor finds that, you owe more tax or deserve a refund, then a reassessment will be done and the next steps will be decided

Knowing these points will help you to prepare for anything related to CRA Tax Audits, Problems & Representation in North York Ontario and help your business further.