The Canada Revenue Agency (CRA) can conduct several types of audits relating to different categories of taxation and compliance with tax laws. To get help, ask a lawyer now.

The most common types of audits are:

1. Income tax audits

The CRA will assess whether an individual or business has reported their income accurately. Generally, the CRA looks for unreported income and incorrect deductions.

2. GST/HST audits

This type of audit reviews compliance with the collection, remittance and reporting of provincial and federal sales taxes. CRA looks for underreporting sales, failure to accurately remit taxes, failure to register for GST/HST and improper input tax credits (ITCs).

3. Payroll audits

These audits review employers and ensure that they are correctly withholding and remitting (payroll) deductions pertaining to income tax, the Canada Pension Plan (CPP) and Employment Insurance (EI). The most common errors found are unreported benefits, late remittances, and the misclassification of workers as contractors vs. employees.

4. Small Business audits

The CRA audits many small businesses and self-employed individuals; for issues often relating to personal expenses being claimed as business expenses, unreported (cash) sales, and inventory discrepancies.

5. Charity and Non-Profit audits

These audits review charities and non-profits to ensure compliance with the unique tax rules regulating these types of entities. The most common issues found are the improper issuance of donation receipts, failure to meet filing requirements and the misuse of funds.

Get help

For advice and assistance with tax planning, a CRA tax dispute, or other tax issues, contact KPK Law.

Personal and business tax issues are vast and complicated. To get help, ask a lawyer now.

								
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