Tax Problems & Representation
A tax audit can be a frightening experience. If you are audited by the CRA, you risk being found guilty of tax evasion or any other tax problem.
The auditor will ask for your books, records and bank statements. If any of this information is found to be incorrect or incomplete, it may be used against you. The penalty for tax evasion can be a costly one. Penalties range between 50 – 200% of the evaded sum.
Ignoring the CRA can result in them taking collection action whether you know what you owe or not. The CRA collection action is not only used to collect debts but also to make you comply with CRA requests.
At Faris CPA, we can represent and advise you during the audit and post-audit process. We can reply to the audit proposal and/or find the errors in your books and records if necessary so that your tax problems can be solved.
If the audit result is unfavourable, we can file a Notice of Objection to get a more favourable result.
A new client had a difficult CRA audit that disallowed an HST refund valued at almost one million dollars. The CRA audit revealed that his previous accountant had made significant errors which resulted in the disallowing a very significant HST refund.
Sam Faris and his team performed an intensive review of the proposal letter from the CRA along with the income tax act. We were convinced that the case would be won if the records were corrected and a new argument was submitted as a replace to the proposal letter from the CRA.
The CRA auditor denied the response. Our firm filed a Notice of Objection to the CRA.
The Notice of Objection was successful, and our client was able to recover, not only the original refund, but there were additional amounts that the previous accounted had missed that were awarded to our client as well.