CRA Tax Audit Assistance
Representation and document preparation when the CRA reviews, audits, or reassesses your business, so you are not handling it alone.
Most CRA contact is not a full audit. It starts as a review letter asking you to support a specific claim, often GST input tax credits, vehicle expenses, meals, or subcontractor payments. How you respond to that first letter matters. A complete, well-organized reply usually closes the file. A partial or late reply frequently escalates into a broader examination of other periods.
We act as your authorized representative, which means the CRA deals with us directly. We read what has actually been requested, gather the supporting documentation, prepare a submission that answers each point, and handle the correspondence and phone calls. If an auditor wants to meet or visit your premises, we attend and manage the discussion so questions are answered accurately and the scope does not drift beyond what is being examined.
When a reassessment is issued and we believe it is wrong, there is a formal path to challenge it. A notice of objection must generally be filed within ninety days of the reassessment date, and that deadline is strict. We assess whether the position is worth disputing, prepare the objection with supporting argument, and deal with the appeals officer. Where the amount owing is genuinely due, we can also request relief from penalties and interest under the taxpayer relief provisions in appropriate circumstances.
What's Included
- Review of the CRA letter and a clear explanation of what is actually being asked
- Preparation and organization of all supporting documentation and working papers
- Authorized representation so the CRA corresponds with us instead of you
- Attendance at auditor meetings and management of the audit scope
- Notice of objection preparation and taxpayer relief requests where warranted
FAQ
Why was my business selected for a CRA review?
Selection is often driven by the numbers rather than by suspicion. Ratios out of line with others in your industry, large or round-numbered expense claims, repeated business losses, significant year over year changes, and GST refund claims all raise the likelihood of a review. Being selected does not mean the CRA believes you did anything wrong.
How long does the CRA have to reassess my return?
The normal reassessment period is three years from the date of the original notice of assessment for most individuals and Canadian-controlled private corporations. That limit does not apply where there has been misrepresentation attributable to neglect, carelessness, or wilful default, in which case the CRA can go back further.
What should I do the day I receive a CRA letter?
Note the response deadline, do not send anything before it has been reviewed, and contact us. Volunteering documents that were not requested is one of the most common ways a narrow review turns into a wider audit.
Need help with CRA Tax Audit Assistance?
Tell A4SB about your accounting needs and we can discuss the support that may be relevant to your situation.