Today, Canada Revenue Agency (CRA) is doing more “reviews” than audits these days, though, let’s face it, it’s just a fancy new name for audit. CRA would have you believe that these reviews are just them ensuring that you’re paying your fair share of taxes, though that doesn’t make it any less stressful for you. Most taxpayers won’t have to worry about a tax review, however, if you are one of those worrying about such a review, here are some tips to make it a smoother process.
If you maintain accurate records over the year, your tax review should run smoothly, or you may avoid one completely. By keeping good records, you have ready access to the information you need to complete your tax return. Rather than putting it off until the end of the year, or worse, when you’re doing your taxes, keep pertinent receipts and documents in some kind of file, envelope, etc. By keeping them handy and in the same place, you won’t forget items that should go on your tax return.
There’s certain things that are more than likely to trigger a review than others; CRA also has years where it looks at certain things over others. By paying attention to what you are doing, you should be able to avoid some of these things:
You probably won’t have to go through a tax review every year, it can happen. Sometimes it can be as straightforward as remembering to follow the guidelines for completing your tax return, schedules, or to include certain types of expenditures or income. If you want to avoid a review then just complete your return as accurately as possible and keep your documents.
What Your Tax Accountant Needs to Prepare Your Income Tax
Get Your Receipts Together Now for Taxes
Christmas in Canada – Fun Trivia that you May Not Know
Do You Know Why the CRA Uses a Profit Test for Business?
How Far Back can a CRA Reassessment go?
Who are the Canadians Most Likely to be Audited by the CRA?
How does the CRA Select a Return for Review?
Surviving A Compliance Review With Canada Revenue Agency