When the CRA sends you a letter, it is the announcement of a tax audit that can give you stress. There are different types of tax audit situations. Some CRA auditors may request information from your side that could be sent to them through mail. Others may request some extra financial disclosure. There may be other situations where the auditors may have to come to your residence or your place of business to conduct the tax audit.
The Canadian tax audit solutions can be reached with the help of experienced tax professionals. You will have to look into those areas where you may have committed some errors during the preparation of your tax returns.
It is not wise on your part to agree to a tax audit without proper representation on your behalf. An experienced tax accountant will inform you about certain documents that you may not have submitted properly while filing your return like receipts or records. It is possible that your bookkeeper also could have made some mistakes.
When the CRA spots one error on your tax return, it will assume that there may be possibly more errors involved and it will usually send out a Notice of Assessment. Part of the Canadian tax audit solutions will be to reduce the risks of CRA auditors suspecting errors on your returns. Canadian Tax audit solutions would also involve a complete review of your tax file and proper representation through the process of audit.
Experienced tax professionals do not simply give out the requested information without going through a complete internal review in order to avoid unnecessary exposure to the CRA of the client file. They fully understand the reasons and intentions behind every tax audit and are able to prepare in accordance.
A Tax audit is not just a document submission exercise. The audits may involve many subjective factors and they will require expertise in terms of representation to negotiate better with the CRA auditors. The audits may take a long time to go through. A typical audit could range from few weeks to many months and they may require an ongoing communication process with the CRA. You need support as part of your Canadian tax audit solutions as it may become inconvenient or time consuming for you to be on your own.
There is a possibility of uncertainty or complications in connection with a tax audit. You may find the going tough without proper professional help. Without professional representation, your Canadian tax audit solutions would be on unknown territory and it will put you at a disadvantage.
It is advisable to seek experienced professional help as part of your Canadian tax audit solutions as soon as you receive the Notice of Assessment from the CRA. There is a good chance that, on your own, you may not be able to answer all the tough questions that may be posed to you by the CRA auditor. The auditor may ask for some details on the tax returns which you may not even recollect. Indifferent replies could lead to penalties and interest and a situation beyond repair.