Preparing for a CRA Audit Checklist
If you are a business owner or an individual taxpayer, you may be selected for an audit by the Canada Revenue Agency (CRA) at some point. Audits can be stressful and time-consuming, but with the right preparation, you can minimize your risk and ensure that the process goes as smoothly as possible. Here's a checklist of things to do to prepare for an audit:
Gather your records: The CRA will want to see your financial records for the period under audit, so make sure you have everything in order. This includes bank statements, receipts, invoices, and other financial documents.
Review your tax return: Make sure you have a copy of the tax return that is being audited, and review it carefully to ensure that it is accurate and complete. If you find any errors or omissions, you may need to file an amended return.
Understand the issues: Before the audit, try to understand the issues that the CRA is concerned about. This can help you prepare your response and provide relevant documentation.
Get professional help: Consider hiring a tax lawyer or accountant to help you with the audit. They can provide valuable advice and representation, and can help you navigate the audit process.
Respond promptly: If the CRA requests additional information or documentation, respond promptly and in a complete and timely manner. This can help avoid delays and additional scrutiny.
Be honest and cooperative: Finally, be honest and cooperative throughout the audit process. Don't try to hide or withhold information, and be respectful and courteous to the CRA auditors.
By following this checklist, you can prepare for an audit and minimize your risk. And if you need help with a tax audit or other tax-related matter, contact AGI Law's Tax Lawyers in North York for experienced legal representation and advice.