We’ve noticed that CRA appears to be getting more aggressive in the way they perform their field audits.
Here are some basic tips that will help you survive your CRA audit
- When CRA calls to advise you that you’re having a tax audit, call your accountant immediately, even if the CRA tells you that you don’t need to involve your accountant.
- Ask the auditor for their name and phone number.
- Ask them to send a written request for information and reason for the audit.
- Co-operate throughout the audit process but ensure you make good notes of any conversations you have with the auditor if your accountant is not present. They will be well-documenting their discussions with you; you should do the same.
- Be pleasant, but remember your CRA auditor is a skilled interviewer. Answer questions, but nothing more.
- With the accountant present, try and resolve as many audit issues when the auditor is on site.
- Prepare yourself for a long process should there be unresolved or contentious issues uncovered during the audit.
- Don’t expect that CRA will act in the same manner you conduct your business. As a business owner, you negotiate regularly and put a high value on your time. You are making cost/benefit decisions constantly. Your CRA auditor may not have the same mindset. They have endless time and limitless resources.