Every Revenue Canada audit is different but generally my first comment to people is to try not to get too stressedabout it. It’sa process and a part of Revenue Canada’s continuing efforts to ensure the right amount of taxes are paid. They’re not picking on you eventhough most people tend to feel like that is the case.
There could have been a red flag that popped up or a particular reason why it came up on their end, but quite often there is just a lot of random, annual audits.
The first thing that generally happens… Continue reading
A specialty audit would be a specific audit. There are a few different types but to give you an example from a few years ago, Revenue Canada decided they would audit all hair stylists. Whether or not you filed correctly or incorrectly, they decided that they felt there was a risk that hair stylists weren’t filing their taxes correctly.
Specific Transactions & Audits
Another type of specialty audit… Continue reading
Have you been audited recently and have a hefty tax bill to pay? Or maybe you didn’t put enough money aside to pay your year end taxes. Either way, many people wonder how much room there is with Revenue Canada (CRA) to negotiate a payment plan.
If you do not have all the money available to pay your tax bill here’s what to do:
- Wait for your notice of assessment to arrive in the mail
- The minute you receive your notice of… Continue reading
If Revenue Canada (CRA) has decided to audit you, you should definitely be using your advisory team. If you are not experienced with accounting, you should not be going it alone. I’m not a contractor so I don’t go and build my own house, if you know what I mean.
Don’t fight your own battle when it comes to taxes and audits but there are some things to consider when making the right judgment. Sometimes the numbers don’t make sense to hire a tax… Continue reading
If the CRA is assessing an older year of yours that is closely approaching the end of the assessment term, you may receive a request to surrender your right to the Statute of Limitations if you need some additional time to provide CRA with all of their requests for information.
If you don’t sign it, that means Revenue Canada has to act quickly to assess it, otherwise they run into the Statute of Limitations. If you sign it, you are giving up your right to using the Statute of Limitations as a reason why their assessment might be wrong in… Continue reading
Obviously increasing cash flow in your business is extremely important. Without enough cash flow, you’re going to have problems. The businesses that generally run into cash flow issues are those that require significant amounts of inventory. For example, the service industry very rarely tends to have a cash flow problem other than collections.
Come to think of it, let’s talk about collections because that is the first way you can start increasing cash flow.
Are You… Continue reading
When the time comes that Revenue Canada wants to conduct an audit on your business, you want to make sure you have all your ducks in a row. It can be a daunting task for your business but it can run smooth, as long as you have kept a decent paper trail and understand what type of audit is being conducted on your business.
Revenue Canada can request additional information and audit you up to 3 years after any claim is filed and you have 30 days… Continue reading
As a Kelowna accountant, I meet with a lot of entrepreneurs that have a home office and they want to know how much of it they can write off at tax time. This is not a question with a cut and dry, cookie cutter answer. It is very dependent on exactly what your business is doing that requires your home.
Is This Your Main Office?
The first thing I always establish with my clients is to ensure that their home office is indeed their primary and only office. On the other hand, if you’re like me, I have an… Continue reading