Goverment Tax Audits

There are no guarantees that an audit by the CRA or Revenue Quebec can be avoided. Audits are known to be costly, stressful and time consuming. At Shukr & Associates, we have the experience needed to help you through and ending up paying the tax you rightfully deserve to pay, no more.

How likely am I to get audited by the Canada Revenue Agency?

The CRA or Revenue Quebec occasionally choose their targets at random, but mostly, they target those that are self-employed or small business owners. The reason for this is that employed individuals have a clear paper trail of income, provided by a T4, whereas small business owners or the self employed do not have a clear paper trail, so the expenses declared are sometimes questioned. They may even go as far as generating statistics within one industry to see if all companies comply within the normal range of expenses.

How many years back can I be audited?

The CRA or Revenue Quebec can go as far back as four years of the date of filing. However, if the CRA or Revenue Quebec determine that a potential fraud took place, they may go further back than four years. In order to do so, they may ask you to sign a waiver prior to beginning further investigations. Consult with Shukr & Associate before signing such waiver.

How can I decrease my chances of getting audited?

  • File on time
  • Be honest
  • Be consistent
  • Avoid declaring business losses year after year
  • Select your partners wisely

How can I avoid a rough audit?

  • Consult a specialist
  • Be nice to the auditor
  • Be on guard

Auditors will often try to befriend you during a meeting in order to make you feel at ease with them. They do this not to ease the stress of the audit, but as a tactic to get more information than needed. To avoid this trick all together, we recommend having a professional represent you in front of an examiner.

  • Be organized
  • Inform yourself
  • Consider appealing the tax audit results if the audit was done unfairly.

How will we help you in an audit?

  • Assisting in preparing your return
  • Respecting all deadlines in responding to the auditor
  • Reviewing the tax authority notice and interpret it
  • Researching issues involved, assembling documents and records, submitting missing tax documents
  • Advising you of your options to get your issue solved
  • Representing you in front of an examiner to negotiate

With Shukr & Associates, you can be rest assured that your rights are being protected and that we will try to make the audit process as smooth and painless as possible.