Many CPAs, bookkeepers and lawyers find dealing with the Canada Revenue Agency time-consuming and frustrating. A tax audit can be a frightening experience. If you are audited by the CRA, you risk being found guilty of tax evasion or any other tax problem. The auditor will ask for your books, records, and bank statements. If any of this information is found to be incorrect or incomplete, it may be used against you. The penalty for tax evasion can be a costly one – upto 50% of the understated tax or overstated credits. Also, CRA can take collection action whether you know what you owe or not. CRA collection action is not only used to collect debts, but also to make you comply with CRA requests.
At Dusangh & Co. we can represent and advise you during the audit and post audit process. We can help you decide on the best course of action, whether it is a phone call to CRA or a written objection. We can also help if you have missed reporting income or are behind in filing your taxes, even if it is for several years. Under certain circumstances, we can obtain relief from penalties and partial relief from interest.