10 Things Small Businesses Must Know Before CRA Audit

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10 Things Small Businesses Must Know Before CRA
Audit
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Doesnt it sound scary to hear, Youve been
selected for audit? It may not have any impact
on multinationals and big businesses. But when
auditors send notifications to small businesses,
they start to panic. And theres nothing worse
than hearing these words from CRA auditors.
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Fast forward few hours when you come back from
trauma you received. How will you respond to the
notification? Will you ignore it completely? Or
will you get panic and create a bigger mess than
you already have?
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You can talk to Canadian tax lawyers and ask for
their assistance. They will help you understand
the whole process and may offer you additional
help, if required. In order to get prepared for
such events or to take assistance, you can visit
the website www.barretttaxlaw.com for
help.Furthermore, follow these tips to get
prepared for any such events in future
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1. Its Not Bad Being AuditedCRA chooses
businesses for audits in two waysThey select
particular business because they found something
suspicious in their records. They also select
businesses randomlyThey may choose a business
because they may be auditing similar businesses
this year.So, its not an odd if youre the
Chosen One.
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2. Audit Notification is ImportantDont ever
think they would leave you if you ignore their
notification. In fact, you should call them to
have updates and information about next steps.
So, you can prepare yourself.
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3. Visit with a ProfessionalDont be to naïve to
face them alone. Theyre tax auditors and you
have basic information about tax. Its your right
to have a Canadian tax law lawyer who could help
you answer their questions.
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4. Read Taxpayer Bill of Rights ThoroughlyBy
reading it, you can understand your rights and
make your assumptions. For example, You have the
right to reviewYou can appealThe right to be
treated professionally and courteously
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5. Be CourteousMake their job easier and help
them perform their job. It will make them happy
and they may return the favor.  6. Audits Take
LongAudits dont complete in days or weeks. Some
may take more than six months. Even a desk audit,
in which CRA reviews only one item, may take more
than a month. You have to be patient with it.
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7. Your Records Must Be As Accurate as
PossibleCRA has your previous tax records. It
will review your business and personal records.
They may request for the records of other
individuals, and check all the adjustments made
by your accountant. 8. Start the AuditAudit
starts as soon as auditors are permitted to enter
the premises. They start by observing the human
side, followed by a meeting with you (the owner),
your tax advisor and the head of accounts.
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9. Prepare Yourself for QuestionsMake sure you
have your advisor so that he can explain the real
meaning of the question asked. 10. Panic is Not
an OptionIf auditors inform you that you need to
pay more, you can either agree and pay or
disagree and appeal. To appeal you have to file
an objection within 90 days after notice of
assessment was sent.
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Thank You