This post contains excerpts from an article that originally appeared on the FBC blog. It is reblogged with permission.
More and more businesses are facing a CRA audit these days. Canada Revenue Agency (CRA) has especially ramped up audits of small- to medium-sized enterprises. Knowing how CRA selects taxpayers for audit, as well as what to expect during an audit, could make you better prepared if you’re singled out. Audits are nothing to fear if you comply with tax rules and regulations… and, if you follow these 7 handy tips. (Click here to read deeper.)
1. Avoid a CRA Audit in the First Place
2. Keep Accurate, Detailed Records
3. Get Help from a Tax Professional
4. Be Sure You or Your Tax Professional Request Enough Time
5. Only Provide the Information the CRA Auditor Asks For
6. Make it as Easy as Possible for the Auditor
7. Don’t Be Afraid to Appeal the CRA Assessment
Bonus Tip: US customers, sub in “IRS” for “CRA” and these tips apply to you!