CRA review – Pennysaverblog

Taxes

How To Survive A CRA Review Or Audit

Deal with it: Open all the brown envelopes you receive from the Canada Revenue Agency (CRA) promptly. If you receive a call from the CRA, return it. Ignoring the problem will not result in it going away. If you are being reviewed or audited, you need to respond and provide the information requested.

Meet the deadlines: If the CRA is reviewing your moving expenses, they will give you a due date for providing the documentation. Make sure you meet their deadlines. Even if you have the right paperwork, but you are late sending it, they will re-assess your return without the credit. Then you will have to file an adjustment to make the claim again.

April 13, 2011

Taxes

Top 7 Ways To Trigger A CRA Review

Forget a T slip: You are required to report all your income. The Canada Revenue Agency (CRA) receives copies of all the T slips issued, so if you forget, misplace or hide a T slip, it will inevitably be uncovered by their matching program and result in a reassessment. Do this twice in a two-year period and you will be looking at substantial penalties.

Your business looks like a hobby: The CRA does not expect every new enterprise to make a profit their first few years in business. However, you cannot create a business for the purpose of creating losses. There must be some reasonable expectation of profit in future years. If you claim year after year of losses, you may be answering questions about your business plan from a CRA auditor.

March 16, 2011