A CRA tax audit could become a daunting task that is not so easy to manage. When you receive a Notice of Assessment from the CRA, you can seek help from experienced tax professionals so that they can guide you in the resolution of all tax audits with CRA auditors.
The auditors who conduct the CRA tax audit may make the taxpayers feel defensive. It will empower you when you gain some knowledge about the process of the CRA tax audit and about your legal rights as per the Income Tax Act. You need the help of tax professionals who focus specifically on the resolution of tax audit problems with CRA when they represent you in your CRA tax audit process.
The task of the auditor is to assess the tax dues and not to think in terms of the best interest of the taxpayers. There may be some clashes during the process of the CRA tax audit. Taking the help of tax professionals?can minimize your interactions with the auditors and it will help bring your stress levels down so that you can focus on the business at hand during your times of financial hardship. Not being able to negotiate with the auditors during a CRA tax audit can become unproductive and it may also lengthen the duration of the audit, bringing in unnecessary tax assessments and penalties.
During the CRA tax audit, the auditors may require additional information concerning your records of income and expenditure and documentation. They may also seek some answers to questions in writing. Information becomes the basis of all tax assessments. It will help you tremendously if you understand what documentation and information you have to provide to the CRA and you may have to consider your answers very carefully to the questions so that you have a strong footing during the CRA tax audit. Tax professionals?will be able to help you in understanding why the CRA auditor is asking certain questions or seeking specific information.
Spending some time with the tax professionals will help you in the preparation for the CRA tax audit and will improve your chances of an efficient resolution of the assessment. You have to remember that the CRA has broader powers so that they can request you to provide all the supporting evidence or document to sustain your tax claim. The CRA can use documents, notes and all kinds of discussions against you if they feel that they have a strong case.
The tax professionals?will help you in the review of all relevant documentation and will prepare answers to certain expected questions from the CRA auditors. They will also help in the preparation of written submissions to a CRA auditor to support your filing position and explain your stand on the tax issues of dispute during the CRA tax audit.