CRA Tax Audit in Toronto
Are You Being Audited for Your Personal or Corporate Taxes?
If you want to avoid a corporate or personal tax audit in Toronto, call us at 1 844 340 5771.
Are you at risk?
T4’A 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 Audit Problem Solved
Tax Audit Experts in Toronto
At Faris CPA, our clients can feel confident they will receive what they are entitled to from the CRA and won’t pay a penny more than legally required.
With over a decade of experience in accounting and tax specialties, we understand the importance of ensuring your personal or professional finances are in order, and that starts with a licensed income tax audit specialist.
As experienced and compassionate tax accountants in Toronto, we work closely with our clients to ensure their financial records are accessible and organized before submitting their yearly income tax reports. With the help of a Faris CPA tax audit specialist in Canada, you can rest easy knowing that your financial affairs are in capable hands.
CRA TAX AUDITS
Tax audit procedures are designed to ensure Canada’s tax system is fair and balanced and that all Canadians filing their taxes are following current tax laws and receiving their entitled benefits and refunds.
CRA tax audits will assess your previous personal or professional tax filings, to determine if there are any discrepancies. Personal income tax audits may include reviewing bank statements, mortgage documents, and credit card statements, while business audits typically involve invoices, employee payroll information, GST/HST, and any business-related statements.
During a CRA Tax Audit
When a tax audit is initiated by the CRA, an auditor is assigned to your case to review all personal or professional records or the records of another party that is not under investigation, including spouses and children.
Your auditor will contact you by phone or mail with the time, date, and location of the audit. In some cases, tax audits in Canada are completed on-site at your residence or place of business, while others will take place off-site at a CRA office. During this time, your auditor may ask for copies of physical or electronic documents pertaining to invoices, receipts, bank statements and other relevant information.
Once a CRA tax audit is complete, there are two potential outcomes — reassessment and no reassessment. Reassessment means there are additional taxes that must be paid, or you’re entitled to a refund, and you’re presented with a letter detailing the results, which you can agree or disagree with within 30 days. No reassessment is announced when an auditor determines there are no discrepancies in the original filings, and no further action is required.
Find Tax Audit Help in Canada
At Faris CPA, we work with individuals and businesses in Toronto and across Canada to provide tax audit consulting services that produce real results.
We offer a selection of customized tax and accounting services to suit your needs. Whether you’re dealing with GST/HST audits or income tax audits, our accounting specialists will work with you to ensure your books are in order and any financial adjustments are submitted to the Canadian Revenue Agency.
Our team is dedicated to our clients’ financial well-being and will work tirelessly to deliver results you can trust.
Experience high-quality tax audit solutions in Canada today.
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.
TAX AUDIT 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.”
HIRE AN EXPERIENCED CPA FOR A CRA GST/HST AUDIT
Faris CPA is proud to be a certified tax accounting firm with over a decade of industry experience and expertise. We help individuals and businesses assess their accounting needs through a selection of licensed services, including our specialized income tax audit assistance.
When it comes to your personal or professional finances, you need tax audit specialists in Canada you can trust.
As an experienced, certified, licensed, and expert tax accounting firm, we help our clients handle their pressing tax and accounting issues. Give us a call today at 1-844-340-5771 for a confidential initial assessment about any accounting or tax matters
What is a CRA tax audit?
CRA tax audits are carried out by an auditor that has been assigned to examine your file. Using historical data, the CRA is 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.
I’m being audited by the CRA. How do I stop the audit?
Once an audit is started you cannot stop it. You can hire a Certified Professional Accountant who specializes in tax problems and who can ensure your rights are protected and that any taxes and/or penalties can be minimized.
How can a tax audit professional help me?
No one wants to be the recipient of an audit by the CRA, but it’s far worse if you don’t get a CRA tax audit specialist to provide assistance. Your accounting specialist 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 CRA tax audits is incredibly stressful and can end up being very expensive. A professional accountant 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 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 receive a proposal letter.
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.
During a tax audit in Canada, the CRA assigns an auditor to your case. 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.
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 have 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 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 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 favour 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.
Can I challenge a net worth audit?
The CRA can perform a net worth audit to determine what they believe your underreported income is. Challenging a net worth audit should be done by a professional who has in depth understanding in this type of audit, strong analytical skills and who has disputed this type of audit with CRA for many years in order to minimize any taxes that CRA is asking you to pay.
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 a CRA audit lawyer 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 a tax return 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.
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 to 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.
TAX AUDIT 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.”