CRA Audit Support in Calgary

No. CRA states that a review of a tax return is not the same as a tax audit. A review generally verifies specific information reported on a return, while an audit can involve a closer examination of books, records and supporting information. The response required depends on the CRA correspondence received.

Review the CRA correspondence carefully, identify the tax period, information requested and response date, and begin gathering the relevant records. KL Accounting can help review the correspondence and organize the response within the agreed engagement scope.

CRA may request books, records and supporting documentation relevant to the tax matters being audited. Examples may include ledgers, journals, invoices, receipts, bank statements, credit-card records, contracts, electronic records and payroll or GST records where relevant. Some business audits may also involve relevant personal or related-party records. The records required depend on the CRA request.

Yes. Where the appropriate CRA authorization is in place and the engagement scope includes representative support, KL Accounting can assist with CRA communication and audit- or review-related follow-up.

There is no fixed audit timeline. CRA states that the time required to complete a business audit varies and can depend on the records involved, the issues under review, the information available and other circumstances.

Follow the submission instructions provided by the CRA auditor or in the CRA correspondence. CRA states that auditors cannot receive audit files through ordinary email for security reasons and may direct taxpayers or authorized representatives to secure CRA submission services or another approved method.

After reviewing the records, CRA provides the audit findings. If no changes are required, the audit can be closed. If CRA proposes changes to the returns, its current business-audit guidance provides an opportunity to respond to the written proposed findings before reassessment.

CRA’s current business-audit guidance states that a taxpayer has 30 days to respond to the written summary of proposed audit findings where the auditor determines changes are required.

If you disagree with proposed CRA audit adjustments, you can provide explanations and supporting information to the CRA auditor. If a reassessment is issued and the matter remains disputed, a formal CRA objection may be available. The appropriate response depends on the tax matter and circumstances.

CRA’s current Voluntary Disclosures Program can allow some prompted applications following certain communications about potential non-compliance. However, an application must be submitted before an audit or investigation has been initiated against the taxpayer or a related taxpayer concerning the information being disclosed. Eligibility depends on the circumstances and CRA’s current program requirements.