Protection from CRA Audits

Audit Shield provides reassurance when it comes to Canada Revenue Agency (CRA) reviews and audits. Which means you don’t need to worry about additional associated fees. However, what is a CRA review and how common are these?

You might be surprized at just how many Canadians are affected everyday.

Audit activity includes any audit, enquiry, investigation or review that is instigated by the CRA and other provincial authorities to ensure business and taxpayer compliance with various tax and legislative requirements such as Personal Tax, Business Audits, Payroll Audits, GST/HST/PST/QST and Trust Audits amongst others.

The CRA and other provincial revenue authorities continue to focus on review and audit activity. In fact, the federal budget seems to allocate more funds every year to increase this review activity. Audit activity can affect all taxpayers. Just because your returns are prepared accurately and on time, doesn’t mean you won’t be chosen for review.

Below are just a few examples of recent focus areas by the CRA:

Corporation Post Assessing Reviews

The CRA have been looking at different areas in Corporation Post Assessing Reviews. What they are reviewing tends to change each year but the newest area that they are focusing on is Apprenticeship Job Creation Tax Credits. Professional fees, travel expenses and vehicle expenses also continue to see a large number of reviews.

Personal Tax

Processing Reviews and Data Matching Programs continue to be a major focus area, as well as in other related tax areas such as Special Assessments Programs. The CRA closely monitors excessive charitable donations and government gifts, medical expenses, eligible tuition fees, and annual union/professional fees, just to name a few.

GST/HST/PST Reviews of Businesses (Pre and Post Assessment Reviews)

These make up a large proportion of reviews by the CRA with Pre-assessment Reviews making up over half of all reviews in this category for Audit Shield clients. These reviews can be based on the types of deductions or credits claimed, your compliance history, or are simply selected at random. The CRA shows no signs of stopping this practice.

Rental Properties

The CRA intends to increase the number of reviews it conducts in relation to rental property claims with respect to rental property related expenses. The CRA also wants all taxpayers to be aware that if you earn income through sharing-economy services like Airbnb that this must be declared in your filed return.

A large number of CPA’s (Chartered Professional Accountant) in Canada offer a program called Audit Shield.

When you select to opt-in to the Audit Shield offering with your CPA, it protects you from the additional costs, up to a prescribed amount, associated with being subject to audit activity by the CRA or other provincial revenue authorities.

For a small annual fee, Audit Shield covers the cost of your CPA’s time and the time of other associated professionals in order to work on and respond to government revenue authorities’ initiated audit activity on your behalf.*

Ask your CPA if they offer Audit Shield. It could save you thousands of dollars.

Find out if your CPA offers Audit Shield

If you are interested in the protection Audit Shield can offer, simply fill out the form below and we will contact your CPA on your behalf.