If it's determined that you don't owe anything, "the government will provide a letter to confirm that nothing additional is owed as a result of the audit," Vittoratos said. "It is not unusual for the CRA to visit the offices of the companies to comb through their accounting records," said Vittoratos.Īfter the audit, if you're found to owe some cash to the government, they'll ask you to pay the amount back "with interest charged due to late payment," according to Vittoratos.Īlso, penalties could be added to that amount if it's confirmed that you underreported your income.
"There's usually a one-month delay to produce the receipts they require," clarified the tax expert.Īs for a business that's suspected of underreporting income, well, they likely will be paid a visit. Vittoratos said that if someone's been selected for an audit, "the CRA will send a letter to the individual asking for receipts for the expenses they find unusually high." If you or your business is selected for an audit by the CRA, the process can go one of two ways. Was your #CdnBusiness chosen for an audit? Here\u2019s some info that can help you learn about the process and what to expect: \u00a0 #/QrStyMIKHF - Canada Revenue Agency Revenue Agency) However, this isn't the only way to get on the CRA's radar.įor individuals, the most common targets of the CRA are those who are self-employed, own rental property or "employees deducting employment expenses like a home office." "The main causes of audits are usually overly inflated claims for certain expenses," said Vittoratos.Įxamples are medical expenses, donations, certain business expenses like vehicle expenses, and claiming what the government considers capital expenses, such as building improvements for a rental, as current expenses. So, Narcity sat down with tax expert Gerry Vittoratos from UFile to try to understand what triggers an audit, what happens during it, and what you can expect if you're selected by the CRA for one.
Canada Revenue Agency (CRA) audits can happen on your taxes and there are things that you should know in case it happens to you.Īfter the tax season, the CRA can conduct an audit on the taxes of any person or business if it feels that that person has made errors on their tax return or if there is "potential non-compliance with tax obligations," according to the agency's website.Īn audit on your taxes conjures up images of piles of receipts and combing through every purchase you've made in the last year which sounds stressful.
0 kommentar(er)
