What To Do When CRA Comes Auditing

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

  1. 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.
  2. Ask the auditor for their name and phone number.
  3. Ask them to send a written request for information and reason for the audit.
  4. 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.
  5. Be pleasant, but remember your CRA auditor is a skilled interviewer.   Answer questions, but nothing more.
  6. With the accountant present, try and resolve as many audit issues when the auditor is on site.
  7. Prepare yourself for a long process should there be unresolved or contentious issues uncovered during the audit.
  8. 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.