Different Types of Tax Audits You Should Be Informed About

The last possible thing that any business owner or any person prefers to face is the CRA tax audits. While the majority of the people think about the CRA audits, they imagine one CRA auditor appearing to their office and carrying out a complete review of the books. There are actually different types of divisions within the CRA, which deal with the audits. Besides, there are also various types of audits- some of these audits are more formal than others. You can seek the tax audit help to get more information about this topic.

Tax audit help

Actually, there are a number of instances where the taxpayers receive messages from CRA requesting the additional details to support a tax return. In case you receive any of the letters from CRA tax audits, then don’t forget to pay close attention to the title of the letter writer. For example, in case you find the title examiner, audit or compliance, then be sure that you are being looked at. In this case, how you will deal with the request would decide whether your return will be re-assessed without any audit or whether you will be audited.

Different types of audit divisions available within CRA

  • Office Audit: This type of audit division mainly deals with the audits of individual persons and not of the corporations. This type of division is one step up from the division of Office Exam and here information will be requested to handle the issues like business losses or rentals. This type of audit is mainly performed through requesting details in-person or by email.
  • Office Exam: This type of audit division within the CRA deals with the most usual form of audit reviews. Here mainly an examiner sends out requests for documentations to support the details like moving expenses, child care, donation claims and more.
  • Audit: It is one such division, which performs complete audits on both the corporations and individuals. These are mainly categorized by the income ranges. Commonly speaking, the higher the sales or income of a person will be, the more senior the auditor will be, which will assigned to your profile.
  • International tax: This type of CRA audit mainly deals with the individuals, who are conducting their businesses abroad and companies with foreign assets

Conclusion

It is important to keep in mind that whenever you are contacted by a CRA, then you must seek the tax audit help immediately. Never assume that you have nothing to hide and opening up all the things will work well.