The Reach of the Canada Revenue Agency
The CRA is not restricted to simply auditing businesses, and will therefore verify numerous types of income activity. These activities include employment expenses, transactions involving the sale of property that result in capital gains or losses, rental properties, foreign properties, etc.
What Does It Mean To You?
The likelihood of CRA contacting individuals and service providers in regards to personal income or the income of clients is greater than it has ever been.
What Can You Expect From a CRA Contact?
A large portion of correspondence from CRA employs standardized language requesting information, some of which may be applicable and some of which that will not be applicable. You may be surprised by what is requested, such as personal bank statements, credit card statements and other financial information that at first glance, may appear to have little or no connection to the income activity under examination. Unfortunately, CRA generally has the right to request such information.
You Have Been Selected For a CRA Audit – What to Expect
It is important to first determine the nature or scope of the audit, which will let you approximate the intensity of the audit including how much documentation and other information you will be asked to provide and the length of time the audit will take.
How Can Welch Help?
It is important that you do not feel powerless and at the mercy of CRA in these interactions. Our goal is to be proactive, informative, and to provide our income tax and GST/HST experience and expertise with respect to dealings of any kind with CRA.