When you get a letter in your mail from CRA, it is time to get yourself Canadian tax audit help. If you want to handle tax filing and face a tax audit yourself, then it could develop into a nerve racking experience for you. Income tax audits are slowly but surely becoming a certainty just like life and death in Canada, . A tax audit could be frightening but it may not become inscrutable. Success can be achieved in this madness through the right kind of advice from tax audit experts.
A tax audit could be described as a scrutiny of your tax returns. During the process of an audit, a CRA examiner will make an assessment of your tax return, line by line. If something is not found to add properly or if the return includes something which is unusual, the examiner will highlight the errors or discrepancies and will ask you to explain or justify your entries. This is why you need Canadian tax audit help.
When you seek tax audit help in Canada, you will find out that there are different kinds of tax audits. They could be office, correspondence or field audits. Canadian tax audit help will prepare you in how you can avoid such investigations. Through correspondence audit, CRA will examine and correspond through mail. This is usually for the common tax return issues like missing schedules or forms or illegible entries and calculation errors.
In a field audit, you will require tax audit help because the CRA examiner will visit your house in order to verify the information that you have submitted on your tax return for that financial period.
You will require Canadian tax audit help even during an office audit where you have to go to the office of a CRA examiner. The examiner will mostly require your tax accountant or representative to prepare and bring all the documentation such as receipts, pay stubs or account statements.
Once you receive information about a tax audit, you have a month to respond and get adequate Canadian tax audit help. If you do not agree with the points laid out by the CRA concerning your tax returns, you may appeal their findings. This appeal will be handled by a CRA Appeals Officer and the proceedings may go on for a year or even longer.
If you have taken a client on business entertainment to a restaurant, it could become a business expense that could be justified. When you get Canadian tax audit help, you will be shown how you can maintain the relevant receipts and give out proper explanations for all audit queries.
A period of three years is set aside as a limitations’ statute on the audit of tax returns that were filed within the time limit. If you keep records properly and get professional Canadian tax audit help, you could handle whatever audit inquiries the CRA may have.