Any tips for surviving a CRA aduit?

Question

Any tips for surviving a CRA aduit?

Answer 1

If you filed your taxes honestly, then you have nothing to worry about. When you file your taxes, you are supposed to keep all receipts in case they ask for them. Hopefully, you did this, so all you have to do is send in the information as requested.

Answer 2

The auditor is required to provide you a summary of the information he/she would like to see, in writing. Once you receive this request, go through the list and make sure you have everything readily available that is on the list. Do not provide any additional information, stick to the written request.

If you had an accountant prepare your tax returns, discuss the audit with the accountant before hand and consider having your accountant/tax preparer sit in on the audit with you.

Remember that you can always object to the decisions made by the auditor. If the auditor makes changes, they will send you a notice of reassessment and you will have ninety days from the date on the reassessment to object to their decision.

It's always a good idea to stay calm and don't get upset by anything the auditor says to you, you can always object to it later.

Answer 3

Be organized.

Answer the questions they ask, but do not volunteer unrelated information.

It's common for auditors to zero in on one aspect of your tax return.  Be prepred to follow the money all the way through.  

Answer 4

1) Ask the CRA auditor if there is a specific concern for the auditor.

2) Consult a tax accountant to familiarise with the concern, or ask the tax accountant to represent you in dealing with the auditor if money is not a concern to you.

3) Looking thru all your books and records to get rid of irrelevant information for this specific concern or other tax issues that the auditor does not want, before giving them to the CRA auditor.