Audit Protection Plan (APP) Toronto

What Happens during a CRA Audit?

The CRA auditor will analyze your completed tax forms, financial records, documents, and information available to the CRA. They’ll also assess your personal and business records. Let Zen Tax represent you during this process to ensure your financial interests are fully protected.  

An auditor from the CRA will contact you via phone, email, or both and schedule a time for the audit. It can happen on-site (at your residence or business place). Alternatively, the audit can happen at the office of the CRA representative.

Imagine sitting across from a CRA auditor, answering endless questions about your personal finances or business finances on the spot. Having knowledgeable tax professionals assist you can make the process more efficient and less stressful.

CRA audits require careful handling, much like other formal government reviews. Having a qualified representative can help ensure accuracy and compliance.

Therefore, it’s best to have an expert who understands your finances in detail represent you during the audit. We’ll respond to the auditor’s questions on your behalf, provide the accurate financial statements requested, and clarify every detail to clear your tax account.

Why are Tax Audits Bad News for Businesses?

For many small business owners and managers in Toronto, tax audits can send shivers down the spine. The entire audit process is stressful and time-consuming. Each document or financial transaction is scrutinized, and the intent is questioned in detail. If the CRA auditor finds mistakes, omissions, or discrepancies, there could be financial, legal, operational, and other implications.

That’s why you should let Zen Tax protect you and your business in the event of an audit. We’ll work with your finance department to assess your tax filing and other related processes to provide clear information on where you stand and the most likely outcome of an audit.

Indeed, we proactively devise strategies to eliminate issues that could trigger an audit. Suppose you still receive a notice for an audit. In that case, we’re certified and experienced tax consultants who can help reduce the implications of an audit or prevent a minor issue from escalating. Remember, we aim to protect you from the following implications of a tax audit.

Financial Implications of an Audit

The immediate effect of a CRA audit will be on your business finances. The CRA auditor will assess your tax credits, corporate tax returns, and income sources and ask for support documents. If you file returns late or there are minor discrepancies in outstanding taxes, you’ll face penalties.

You’ll be charged interest from the time your taxes are due, plus exceptional tax. Considering the tax audit may cover several years, you can expect hefty charges that could exceed your annual income. Failing to pay the penalties or interest forces the CRA to seize your assets or property to recover the fines and tax dues.

Here’s a breakdown of the penalties levied depending on the tax mistake identified during the final review.

Examples of gross negligence include understating your personal tax, providing false information, or overstating tax credits and deductions.

Beyond the immediate financial implications, the CRA may report your gross negligence, hefty fines, or failure to adhere to tax laws to Ontario’s credit bureaus. This will affect your credit ratings, making it difficult for you to obtain credit services like loans.

Operational Implications of Audits

Depending on the audit findings, the CRA auditor might recommend changes to accounting procedures and internal controls. For instance, you may be required to purchase software that complies with the tax filing requirements. In some cases, audited businesses may be asked to fill knowledge gaps by training their team on tax laws.

Potential Legal Implications of Audits

If the CRA auditor identifies issues such as tax evasion, your case could escalate quickly. Note that the CRA is a government agency and will definitely share its audit findings with the relevant agencies. All issues related to your business practices, books of account, and tax filing will be revealed in an audit. Some critical issues, like tax evasion, could trigger civil or criminal investigations.

Protect Your Business during a CRA Audit

With the Zen Tax audit protection plan, you can enjoy peace of mind in knowing that your business and personal finances are protected from the unpredictable costs associated with tax audits.

Imagine receiving a CRA notice and simply forwarding it to one of the top tax preparation service providers in Toronto. No stress or guessing what to do. Just send it over to certified accountants whose aim is to protect your interests while ensuring you stay compliant with CRA regulations. That’s the benefit of choosing our audit protection services.

At Zen Tax, we provide the representation and technical support you need so that you don’t spend hours on hold with the CRA, only to be disconnected before getting the help you seek. Also, you don’t have to struggle to decode a confusing letter about your taxes or attend an intimidating CRA meeting on your own.

In Toronto, you can authorize a representative to handle your business tax, personal tax, trust tax, or residential tax matters. With such authorization, Zen Tax can securely access the information necessary for tax preparation.

For instance, our tax experts will need information related to your capital gains, rental income, medical expenses, employment income, foreign income, and other details needed to calculate and file your tax returns. We use advanced tax software and proven processes to deliver accurate and efficient tax services.

What’s Covered in Our Audit Protection Program?

The Zen Tax audit protection plan is a comprehensive service that protects you and your business in case of an audit related to the following:

• Corporate taxes
• Capital gains taxes
• HST, GST, and PST
• Payroll audits
• Personal taxes
• Business audits
• Employer audit & compliance

At Zen Tax, we understand that an audit can be time-consuming and stressful for individuals and small business owners. With our audit protection services, we make the entire process hassle-free. When you become our client, we’ll guide you on the initial steps of our process to ensure we’re in a better position to represent you and protect your interests during an audit.

If the CRA or other provincial agencies choose you or your company for an enquiry, audit, review, or investigation, we’ll be ready to represent you. Our team of experienced tax preparers and accounting professionals in Toronto will take care of the audit while you focus on managing your business.

We’ll manage every aspect of the audit process, from the moment you receive notice up to the end of the audit process at no additional cost to you. At Zen Tax, we uphold transparency in our pricing. No surprise charges. Let our team provide the services that will protect your business in the event of an audit.

Affordable CRA Audit Support Services in Toronto

Undoubtedly, getting audited by the CRA is one experience that you want to avoid whenever possible. Considering you can’t be absolutely certain you’ll never be audited, it’s best to ensure your financial records and tax practices are compliant with the CRA regulations.

At Zen Tax, our experienced accountants and tax preparation experts in Toronto can help keep accurate books and records of your income sources. We can help keep digital and physical copies of your financial records, which can be useful during tax season.

Instead of using ‘auto-fill my return’ when you file taxes, let our experienced tax professionals prepare your tax information accurately for each tax year. This is an important step in protecting you and your business if you’re selected for an audit. Schedule a free consultation today to learn more about our audit protection plan (APP).