Duarte & Associates
Paul Duarte, Tax Consultant
June 8, 2015
Duarte & Associates has been in business for over 20 years. We have well over 200 clients that come to us annually for preparation of their income tax returns, Corporate Returns, GST/HST Returns, Charity returns, and Bookkeeping. In all that time, our average rate for a client being audited by Canada Revenue Agency has been 1 to 2 per year.
However, due to some recent changes by CRA in the creation of the International Tax Office (Which means CRA can track your financial affairs no matter where in the civilized world you go) and the Special Assessment Review Program (Which plans to audit anyone with a small business or work at home employment expenses), a large number of Canadians are being audited on an yearly basis from now on.
This is beyond the control of Duarte & Associates and in the last week alone, we have had over 20 of our clients come to us for help with their audits).
At first, we thought that we at D&A were being uniquely targeted by CRA. But after a few calls we realized that ALL tax preparation companies are experiencing this blow by CRA.
CRA will continue to do this annually from now on throughout Canada, but please do not allow them to bully you out of your dream and part-time income.
CRA knows that most part-time businesses do not make much money, if any at all, sometimes for years and thereby reducing your tax liability and increasing your refunds, if you claim those expenses. That is why they try to discourage you with paper audits.
Fight back by keeping immaculate books and tracking of your expenses, like keeping a mileage log book and income statements for your business.
If you are getting a letter or a level 2 audit, it is simply because your name came up in their computers. So do not panic! It is nothing to worry about, and it does not mean there were any mistakes or false claims on your return. These things are very routine for CRA.
We at Duarte & Associates are here to help and offer you the service of walking you through the experience.
Thank you for your patronage and understanding, and that we at D&A are on your side, working for you not the government.
If you have any questions please do not hesitate to contact us. Thank you for understanding.