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Jul
06

What you need to know about AUDITS part 2

If you are in the process of being audited, it is important to know what actually happens in an audit. Here is a brief summary of the steps involved in an audit.Where & What:  If you don’t have an authorized representative, the audit is generally done in your office or premises.  There are also some cases when the auditor will just borrow your books and records.  In this case, make sure you get a detailed receipt for the borrowed documents and that you have copies of everything borrowed. But if you have an authorized representative like KD, many times, the audit...
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Jul
04

What you need to know about AUDITS part 1

It is important to know, first and foremost, why the Canada Revenue Agency conducts audits.  The CRA regularly conducts selective audits of tax returns and claims for rebates for the purpose of ensuring the fairness and integrity of the self-assessment tax system.  In other words, the CRA wants to make sure that you, the taxpayer, have met all your tax obligations – properly filled out tax returns, paid taxes and received your benefits. The Audit Process: The audit will begin with the auditor providing general information such as: scope of the audit, tax years covered, duration of the audit process and the...
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Jun
29

CRA can revoke your EFILE privileges

Apparently, filing your taxes electronically is not a right but a privilege that the CRA has granted to taxpayers and tax preparers. According to an article by Jamie Golombek, “Filing taxes online is not a right,” a number of unscrupulous tax preparers have had the unpleasant experience of having their ability to EFILE their clients’ tax returns revoked by the CRA. He mentions the case of Christopher Paterson, who was informed that his EFILE privileges were being revoked and that he can no longer file his clients’ tax returns online. Here are some of the important details on this case mentioned in...
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Jun
27

CRA Tax Alert: Warning against claims of false losses or expenses

The CRA warns taxpayers against using a fraudulent scheme wherein the taxpayer claims large losses or expenses equal to their personal expenses such as payments for mortgages, personal loans, vehicle loans and common everyday expenses.  In this scheme, the taxpayer uses a CRA business number to submit information slips such as the T5008 Statement of Securities Transactions, the T5 Statement of Investment Income and the T4A Statement of Pension, Retirement, Annuity and Other Income for amounts related to their personal debts and expenses.  The CRA wants the public to know that using such a scheme will result in some serious consequence for the taxpayer such as...
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