Get the best CRA Audit Assistance Service for your business from Kennedy Tax and Accounting with our team of experts, ensuring a smooth CRA audit process.
CRA audits can be a terrifying and nerve-wracking situation without proper guidelines. Kennedy Tax & Accounting Inc. is always ready for any inquiry from the CRA (Canada Revenue Agency) about your potential income tax audit.
The Canada Revenue Agency (CRA) is a government agency with a wide range of responsibilities that include tax collection, conducting audits and investigations, and administering tax services and laws in Canada.
The Canada Revenue Agency (CRA) uses computer-generated lists, as well as information from specific client groups and external sources, to select income tax files for auditing. During an audit, the CRA will examine source documents, sales invoices, bank accounts, and other relevant records.
Furthermore, beyond collecting taxes, the CRA is responsible for administering several social and economic benefits and incentive programs through the tax system. Additionally, the CRA administers tax services, such as tax credits and deductions that individuals and businesses can claim on their tax returns.
Kennedy Tax and Accounting Inc. will always be there to assist you throughout the CRA Tax Auditing Process.
Audits play a crucial role in the Canada Revenue Agency’s efforts to ensure the equitable functioning of the tax system. Specifically, a tax audit involves reviewing a taxpayer’s forms and supporting documents to ensure that their declared earnings and expenses are accurate and supported by accounting records.
Moreover, an on-site audit provides an opportunity to promptly address any questions that may arise, potentially reducing delays in completing the audit. Generally, an on-site audit is conducted at the taxpayer’s residence, business location, or the office of their agent. However, if an on-site audit is not feasible, the audit will be conducted at a CRA office.
In order to ensure compliance with tax laws and to detect and deter tax evasion, CRA audits are carried out. The CRA targets taxpayers they believe may be at higher risk of non-compliance and have a higher likelihood of evading taxes.
As part of the audit process, the CRA may request a wide range of documentation and information. In response, taxpayers may be required to provide detailed explanations of their financial transactions and activities.
It is important to note that a CRA audit may result in a reassessment of the taxpayer’s tax liability. This reassessment can include additional taxes, penalties, and interest charges.
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In addition to conducting audits, the CRA is also vested with legal authority to enforce tax laws and regulations. This authority allows them to review tax returns, conduct investigations, and assess penalties for non-compliance. If necessary, they may also employ various enforcement actions to collect unpaid taxes owed.
With regards to tax records and supporting documents, there is a legal retention period that taxpayers must follow. In Canada, the general retention period for these types of records is six years from the end of the last tax year to which they relate.
However, there may be some situations where the retention period differs from the norm. Therefore, it is essential to seek advice from tax professionals or the CRA to determine the specific retention period for your situation and avoid any potential inconveniences.
Tax evasion is the illegal non-payment or underpayment of taxes by a person or business. This can be done in a variety of ways, such as:
Get the best CRA audit assistance in Canada with our top-rated services.Kennedy tax and Accounting will provide comprehensive support and ensure compliance with the latest CRA regulations. Trust us for efficient and reliable support for your income tax auditing needs.
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