Video Transcript from How to distinguish between a CRA audit and a request for more information
John Paul: Hi there, and welcome to Campanella McDonald’s Tax Tip video, where today we’re going to talk about what letters you get in the mail regarding CRA audits or examinations for HST and income tax.
Fabio: So a lot of our clients will get a letter in the mail. I’m sure you’re dealing with this a lot. They get a letter in the mail and they call us panicking, saying, “Oh my God, Fab or John Paul, I’m getting audited.” The vast majority of the letters and of course one that you to get in the mail from the CRA, have absolutely nothing to do with audit. In many cases, the CRA just wants to verify some information or do some sort of an examination. So John Paul, how often do our clients actually get full tax out tax audits?
John Paul: It’s very rare. These days, we’re seeing a lot of examinations, a lot of desk audits, but I mean full-fledged field audits, very rare to see these happen.
Fabio: Especially if it’s just a personal tax return, they probably just want to see a slip or see a receipt. That’s not an audit. That’s just a simple little examination. You follow the instructions on that letter. You don’t have to hire a lawyer. You don’t have to hire an accountant. It’s pretty straightforward. So really, the moral of the story is read the whole letter first. Don’t panic. See what they’re looking for. If it does look like a full out audit, okay, that’s the time where you have to contact your accountant and you might need some assistance.
John Paul: Yeah. So when you get that letter in the mail, give it a quick read, talk to your accountant and don’t stress out because really, it probably isn’t an audit. Even if it is an audit, still don’t freak out, just contact your accountant and they’ll help you get through it.
Fabio: That’s it.
John Paul: So until then, we’ll see you then.
Contact the Oakville business accounting experts at Campanella McDonald. We offer accounting solutions for all sized businesses. We handle your request promptly and efficiently.