We solve serious CRA tax problems

CRA Tax Audit in Toronto

Are You Being Audited for Your Personal or Corporate Taxes?
If you want to avoid a personal or corporate tax audit in Toronto call us at 1 844 340 5771.
Are you at risk?
T4’d employees are usually not targeted by the CRA since their income is easy to verify. Small businesses are more likely to get audited because they have discretion in income reporting and expense claims.

Get Your Tax Problem Solved

  • Tax Audit Assistance
    Do you think that you’re facing a potential tax audit? Are you concerned that you won’t be prepared if you are notified that you’re being audited? The best preparation is to have a relationship already established with a knowledgeable tax audit assistance team well in advance of receiving any of these notices so that you can respond professionally and promptly.
  • How Can a Tax Audit Professional Help Me?

    No one wants to be the recipient of news that they’re being audited, but it’s far worse if you don’t get help from a tax audit specialist sooner rather than later. Your tax audit assistance person can help you prepare all the necessary paperwork and to navigate this situation so that you feel as comfortable as possible and know all avenues available to you as the audit unfolds. 

    Dealing with a CRA audit is incredibly stressful and can end up being very expensive, a professional can help you through this process by saving you time, money, and giving you peace of mind. A tax audit professional can help by getting audited financial statements organized and reviewing them, which can help you win your case against the CRA. .

  • What is the Tax Audit Process?

    You will be notified if your tax record has been selected for an audit. You will be informed by phone, through the mail, or through both about the date and location. An on-site audit will usually take place at your personal residence. It is best to be as organized as possible when this is scheduled and having all your paperwork set up to go since this will make the process faster. Having a tax audit assistance professional help you sort through this information is key to protecting your interests. Electronic copies of your paperwork might be made; if any of your documents are taken you should get a receipt for these. Auditors cannot receive information from you over email, but there are possible secure options for you online. 

    What Are My Options When Faced with a CRA Audit?

    One of the options someone has when they are faced with a CRA audit is they can challenge the audit. You need to have strong evidence in your favor and the support of an experienced professional tax audit assistance team to navigate challenges like this. You also have the right to appeal the outcome of an audit.

  • What Are the Red Flags That Might Cause the CRA to Audit Me?
    Some of the issues that flag agents are revenue discrepancies, recurring losses, there are major changes from the previous year, what you’re reporting does not match what the CRA is getting from third parties, and more. It can be difficult to tell which issues prompted auditors to look more closely at your file.

What can I do to reduce the chance of being audited by the CRA?

Using a tax audit professional early on helps you ensure that your returns and information are being sent in properly. Having someone at your side who does audit assistance is also helpful since this person will likely challenge what the CRA is saying. Filing all your income tax returns on time is another way to show compliance with the tax laws and minimize your chances of an audit in the future. Since anyone can be subject to an audit, it’s worth having help at your side just in case. 

If you are audited by the CRA, having easily accessible books and documents to support your claims will make it easier to show that you submitted the accurate information to begin with. The CRA is looking for discrepancies and showing that you have kept things orderly and supported by outside professionals makes it easier to broach this process.

Tax Audit Assistance FAQ

How long does an audit take?

An audit can take anywhere from a few weeks to months or even years depending on the complexity of the information involved. Being organized on your end can make the process go faster, but there will also be delays if you challenge what the CRA says. 

Does the CRA review every tax return? 

While the CRA does process every tax return, this does not mean they audit every tax return. Due to this, you should always be aware of the potential to be audited by the CRA. 

Can you negotiate with CRA?

 In some cases, you can appeal what the CRA says. However, you need a savvy tax audit professional at your side to help you determine when there are other options available to you and how you can use them.

 

Faris CPA’s clients rest confident that they will receive what they are entitled to from CRA and not pay a penny more than legally required.

M.W., BC – Client

”Sam’s team helped with my audit and cut my bill significantly. I saved thousands of dollars. Sam and his team were great.”

Call us today at for a Confidential Initial Assessment about any accounting or tax matters. As an experienced, certified, licensed, and expert tax accounting firm we help our clients handle all tax and accounting issues. Give us a call today at 1 844 340 5771.

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Case Study

A new client of ours had been audited by the CRA. It was discovered that their previous accountant had made many errors and had made many adjustments to their tax records. This company needed someone who could fix their books, records and amend 3 years worth of personal and corporate tax returns.

Our firm took over the file and started working on their books from the beginning. Corrections were made throughout the company’s books and records. Corrections were also applied to 3 years worth of personal and corporate tax returns. These adjustments were submitted to the CRA and the results were very favourable for our client.

This client has continued to use our firm for handling their business and personal financial affairs.

“Sam is a solid character with high standards and ethics which make his firm excellent.”

FAQS

What happens when you get audited by the CRA?

When you get audited by the CRA, you send the records asked for to the auditor. They use them as well as bank and other financial statements to assess whether you have paid the right amount of tax. Sometimes they will also access the financial records of individuals you are close to, such as a spouse. Provided everything is as it should be you will receive a completion letter. If not you will be sent a proposal letter.

What happens during a tax audit?

During a tax audit in Canada, the CRA assign an auditor to you. They then tell you which records to send them. Your auditor will also be able to access information relating to your bank accounts, credit card statements, tax records and other relevant information. They may also access the financial records of people you are connected to financially or close to, for example trustees. Once your auditor has checked everything, they will tell you the outcome of their audit.

What do you mean by a CRA tax audit?

A CRA tax audit is carried out by an auditor that has been assigned to examine your file. Using historical data, the CRA are able to determine who is most likely not to be fully compliant, either because of common errors or deliberate acts of tax avoidance. During the audit, your financial statements and records are examined with the aim of checking whether you have paid the correct level of tax.

Testimonial

“I was assessed significant amounts by the CRA on a net-worth assessment. Thanks to Sam’s help, I was successful. My original assessment of 94K was reduced to nothing.”

E.M., Ottawa
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Pro Tip

ACCESSING THE SMALL BUSINESS DEDUCTION IN YOUR BUSINESS

The Small Business Deduction gives businesses a tax deduction on the first $500,000 of income. This saves an eligible corporation around up to $50,000 in income taxes. There are a number of conditions that have to be met to be eligible for this deduction.