Many mature businesses have endured this at least once during their life time – a CRA tax audit. Most businesses survive an audit with no issue. This happens when the business has an adequate set of financial records that is easy for the CRA auditor to examine. So what makes up an adequate set of financial records. First of all, the CRA audit has changed from twenty years ago. In the past, an actual person came to the business premise to examine the books and records. Hence if the ... Read More
Know Your Tax Laws, Keep Your Receipts, Document Your Activities
The past year, I have noticed quite a few more requests from CRA to review medical expenses, donation receipts, and HST returns filed. The best thing for a business owner being audited is that they have been honest with their tax affairs. The second best thing is for the business owner to have a competent professional Vancouver accountant to assist them through the process. If the records are complete and accurate and the professional accountant has experience dealing with CRA, then the audit ... Read More
CRA – The Straw that Breaks the Camel’s Back
At Mew & Company Chartered Accountants in Vancouver, we work with the Canada Revenue Agency (CRA) through an "honor system", which means a business reports its income and expenses without having to remit receipts and bank deposit books to prove its accuracy. This honor system is an efficient and economical way to collect taxes. Many savvy business professionals know that it is not wise to mess around with the CRA. These people work with competent bookkeepers and reputable tax advisors to ... Read More
Choose Your Professional Vancouver Accountant with Care
When an incorporated business in Vancouver calls asking for professional representation for a CRA audit, the first question I ask myself is “Why is the person who was paid to prepare the tax return not doing the representing?” A very common answer is something like “My wife who is not a professional accountant prepared the tax return. She does not have the knowledge to deal with the CRA.” However, this year, I received an unexpected answer: “My accountant has been charged with fraud." The ... Read More
Vancouver Business Tax Audit – When CRA Comes Knocking
If your Vancouver business receives a letter from the CRA (Canadian Revenue Agency) asking for documentation to support an HST or corporate tax return, it is not a good idea to deal with the matter on your own. Hire a Vancouver chartered accountant to represent you during the business tax audit. First of all, CRA auditors are accountants. When they request information, they basically expect to see accounting information, not a lengthy verbal explanation on why your HST return for this year is ... Read More
How Vancouverites Can Avoid a Tax Audit
Whether you are an individual taxpayer or a corporate taxpayer, a call from the Canada Revenue Agency (CRA) will surge your anxiety. Most calls from the CRA are benign. Usually, they're calling to inquire about an outstanding return or a figure your professional accountant has put in the wrong box. But according to CRA, for the 2007 and 2008 fiscal years, 87,000 small and medium enterprises were audited. CRA uses a computer system to assess taxpayers, assigning them a risk factor of high, ... Read More
