The Canadian tax collector, Canada Revenue Agency, is known to conduct tax audits on filed tax returns. The CRA records tax returns in a computer system that allows it to determine the accounts that must be audited. Hence you can be audited anytime even if you have paid your taxes for the current and previous years on time. Fortunately there is tax audit help out there.
If you are already facing an audit process and you are feeling sick and tired of it you should get tax audit help. It is designed for a tax payer just like you. Perhaps you do not even understand why you got picked in the first place and why you need tax audit help. There are triggers of a CRA tax audit that you should always keep on your finger tips.
First, people who are self-employed or in personal businesses get picked for the auditing process more often. It is not a crime to start a small business. The revenue collector does not have a problem with the mere existence of your business. They just want to ensure that you are declaring your entire sources of income.
If you are in the industries where transactions can take place without being noticed or recorded, such as the construction and restaurant fields, you can attract an audit from the CRA. Your probability of being audited is indeed higher. Have you recorded unending business losses? You may become a victim of the tax audit help very soon. The Canada Revenue Agency may perceive the constant losses as a trick to offset other proceeds.
If the tax collector compares your tax returns against the returns of other businesses in your industry, and finds a gap, it may raise a flag. For instance it may find that you have understated your income in comparison to those who live on the same street as yourself. The CRA may wonder how you can live on that street when the income you have declared is very little compared to your neighbors’.
Tax audit help can be avoided if you learn to keep each and every receipt you get after spending. Receipts can help you if you are ever called upon to substantiate a deductible with regards to a big expenditure. Home offices are all the rage in Canada and other nations. If you have a home office you are permitted to declare a given portion of your home as an office. But if you claim more than ten or fifteen percent in your tax returns you can get audited. This can also compare to driving your auto for personal and business reasons.
If you fail to keep records it will be difficult to prove how you used the auto at any given time. People who participate in very aggressive tax planning schemes are almost sure that they will soon seek tax audit help. Aggressive tax planning may include donation schemes and tax shelters. These schemes cannot go for long without being audited. If you are going through a CRA tax audit do not be scared. There are professionals who can offer you tax audit help and much more.