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Three Things Making CRA Audits Tougher?

Learn three things here that make CRA audits tougher. To avoid the stress and penalty, look for professional tax audit help. Contact us. We will provide you with great assistance. Visit: https://gatewaytax.ca/

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Three Things Making CRA Audits Tougher?

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  1. Gateway Tax Services My name is Andrew Adolph and I am a Certified Professional Accountant (CPA). I was hired straight out of accounting school in 1990 by Revenue Canada who were looking for people to be auditors of the new goods and services tax (GST) the government was proposing. Luckily for me, the GST was successfully enacted on Jan. 1, 1991.

  2. Three Things Making CRA Audits Tougher? Some disturbing trends have been noticed in the way CRA audits are carried out. CRA seems to have been squeezing more out of its audits. So, the audits are taking more time and the CRA’s Appeals Division is overburdened.

  3. Longer Audit Periods CRA can audit a tax return any time in three years once it is assessed. GST returns files in two recent fiscal years and any return file in the current year can be assessed. In 1997, a directive was issued regarding how long a normal audit period should be.

  4. Net Worth Audit CRA uses ‘net worth audit’ as a tool to discover the increase in a taxpayer’s wealth and unreported income over the audit period. In this audit method, the CRA tax auditor compares the assets and liabilities at the beginning of the selected audit period with the assets and liabilities at the end of the audit period. The auditor also checks the expenditures in this period. This helps the auditor to get the closing net-worth and find unreported income. An important thing to learn here is, CRA is not bound by the information given by a taxpayer. The tax auditor is allowed to make reasonable assumptions that are supportable by the available evidence.

  5. Automatic Gross Negligence Penalty The CRA Tax auditor has the authority to levy an additional penalty if they notice an error and they feel that error was made deliberately. Twenty-five percent of the GST misstatement amount is calculated as GNP.

  6. If you receive a notice from CRA regarding the GST audit of your company, contact us. We are specialized in GST audits and can help you deal with this difficult situation efficiently.

  7. Contact Us Gateway Tax Services 13383 108 Ave, Surrey, British Columbia, V3T5T6 Office: 604.240.6173 Mail Id:info@gatewaytax.ca Email Id:https://gatewaytax.ca

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