This article was first published on Bateman MacKay LLP website.
How does an audit work?
In 2016-2017 alone, there were over 20,000 small and medium enterprise audits conducted by the Canada Revenue Agency. Companies can be audited for any number of reasons including reviewing the financial information you have submitted to the CRA in comparison to similar businesses.
If the CRA decides to audit your company:
- You will be notified.
- The auditor will examine books and records, documents and other information which will often occur on-site at your business.
- During this process, the auditor will identify and discuss issues with you.
- Once the audit is complete, the auditor will determine if there was a correct assessment, more taxes are owed or a refund is required.
- These CRA audit results can be appealed.
- The amount of time a CRA audit can take varies due to the size of the business, state of records, and other factors.
How can Bateman MacKay LLP help?
Bateman MacKay LLP will be with you through the entire process. In the unfortunate event that you are audited, we will be there every step of the way. Once we are notified of your audit, we will review the tax return and documentation for the year being audited and develop a plan to make sure the audit process by the CRA is as non-invasive as possible.
Even if a CRA audit results in no adjustments, professional fees are often incurred from this CRA instigated audit activity. To help you mitigate these CRA audits, appeals and possible litigation related professional fees, we have partnered with Audit Shield. Audit Shield is tax audit insurance that has been available to accountants and their clients since 2003 and is now accessible to accounting firms in Australia, New Zealand, and Canada. This insurance covers audits, enquiries, investigations and reviews from the CRA, with no minimum claim or deductible. Audit Shield also protects the current year and all previous years’ returns.
If you have any questions about CRA audits, the audit process, or Audit Shield, reach out to your Bateman MacKay LLP account manager.