Tax Audit Defense Service in Mississauga
We defend clients whose income and/or expenses have been challenged by CRA. Call today for free consultation on our tax audit defense service and solutions. Located out of Mississauga but service all of GTA including Oakville and Brampton.
Experience as a CRA Auditor
Farrukh Ahmed began his career working for the Canada revenue agency as a Tax auditor. He knows the possible triggers that lead to an investigation and how to form a proper defense to reduce tax-liability.
Accounting Firm that’s been around
Our accounting firm has been providing tax services to individuals, businesses, and entrepenuers for almost three decades. Est, 1993.
Chartered Professional Accountant.
In the end you want a CPA who cares and will fight for you in your corner. Farrukh provides on-going support to help minimize your tax liability for the next year. Open line for our clients whenever they need help.
What causes a tax audit?
The CRA conducts it’s tax audits to try and minimize the gap between what it received and what it’s owed. When it comes to small businesses, sole proprietors, and corporations the owness is on them to declare their income and expenses. So it’s natural that many would try to cheat the system.
CRA audits usually occur when there seems to be suspicious activity. For example, a sole proprietor who declares a loss for two consecutive years trying to get his business off the ground may trigger an audit. These audits can also be random and self-employed face a greater chance of a tax-audit.
How can you a prevent tax audit?
Dealing with tax-audit can seem daunting. Being selected for an audit doesn’t mean you’ve done something wrong. We can take all the right steps to prevent an audit and still be selected at random.
You want to use your intuition and common sense when claiming business expense. It’s not likely you’d make $10,000 worth of charitable donations if your income was $40,000. Any ‘expense’ purchased for personal use but claimed as write-offs are also obvious to the CRA.
It’s important we maintain clean records with the CRA, you need 1) accurate calculations for tax claims and deductions and 2) a strong reason why the expense contributes to business operation should an audit occur.
The CRA has the power to not accept your tax-returns and make it’s own assessment should your defense be inadequate.
Farrukh’s Tax Tip – how to win CRA audit
You must be able to successfully answer these five questions in order to survive and win a CRA audit. Remember the auditor has historical and industry related statistics but doesn’t know the current challenges you may be facing in the marketplace. When gather the supporting documents and get ready to file your tax dispute (a process which we can help you with) it’s important to show you past these tests:
1. Will the activity of the business in question result in future income. (commercial viability)
2. Is all income from the venture being reported? (hiding cash)
3. Reasonable expectation of profit over time? (Think Amazon operating at a loss for many years with the goal to make money someday).
4. Are the deductions claimed reasonable? (reasonable expectation for profit)
5. Is there any items listed for personal use but claimed as business expenditure.
Farrukh has been my accountant for at least the last twenty years. He has done an excellent job of assisting me in managing both my business and personal finances. His work has always been accurate and timely. His guidance over the years has been most instrumental in my success. Perhaps most important, he is always willing to answer my questions and provide guidance in a caring and pleasant manner. He genuinely cares.
Tax Audit Strategy
- Handling all communications.
- CRA Representation
- Forming Tax Documents
- Record Keeping