Paying tax on any income earned is a legal requirement for individuals and businesses. There can be severe consequences for those who avoid paying their tax dues. There are proper taxation authorities for every country that deal with the payment and collection of taxes. For instance, the Canadian Revenue Agency is responsible for dealing with the taxation matters of the individuals and corporations in Canada. Therefore, it can be nerve-wracking for anyone to receive an audit notice from the CRA. No matter how carefully the returns are prepared, it?s difficult to imagine that an audit letter from CRA is anything but bad news.
What does a CRA tax audit entail?
Basically, a CRA tax audit involves a detailed investigation of the tax obligations of a party, which can be a business, individual or any organization. The purpose of the audit is to discover if the party has intentionally attempted to evade payment of taxes and whether it owes additional taxes or not. It is not very difficult to neglect making payments or mentioning all income on the federal tax return because some taxes are self-reported. A CRA tax audit is performed on businesses and individuals that are suspected of such negligence and for determining whether this ignorance is deliberate or an honest mistake.
Get professional CRA tax audit help
When an audit notice is received, individuals and businesses usually seek CRA tax audit help from experienced tax consultants. The consultants should be aware of the auditing process and what it involves. A team of skilled fact-finders and tax accountants is sent to help taxpayers that?s suspect of evading or underpaying taxes and they have the responsibility of sifting through the accounts and records of the party to determine the amount of tax that?s due. The auditors have complete knowledge of the different tax codes due to which it?s easy for them to figure out any discrepancies in the tax owed and paid. The final owed amount is usually determined by the auditor and this means that the party might have to pay more.
CRA tax audit targets
The CRA tax audit notice is typically received by those businesses and individuals that are suspected by the government for evading tax. They most likely owe additional taxes to the government. It?s usually large businesses and wealthy individuals that are suspected of paying lesser than owed taxes and they might need tax audit help for avoiding being subject to this process. However, the CRA tax audit can also be performed on random parties as the government doesn’t need any proof for carrying it out. There is no guarantee that a tax audit can be avoided completely.
When people seek CRA tax audit help, they will be told that some steps can be taken for avoiding a full-blown audit. Sometimes audits can also be resolved by mail and all the taxpayers need to do is to provide the tax auditors with the proper documents. A complete audit can be avoided in the future by reporting all the income earned on the proper forms and filing tax returns on time. Any cash payments and tips that have been received should also be reported even when there are no official documents. This CRA tax audit help from experienced tax consultants can prevent future auditing procedures for the business or individual.
You can not afford to delay and call for help as soon as you receive the CRA tax audit notice. Do not speak to CRA tax auditor to reduce the change that the information you volunteered will be used against you. Call Tax SOS right away for a free consultation at 1-877-982-9767.