CRA Audit Representation in Burnaby

Getting audited by the Canada Revenue Agency can mean responding to detailed questions, producing supporting records, and addressing proposed changes to your tax return.

Accountants-BC Ltd. provides professional CRA audit representation in Burnaby for individuals and businesses. We represent you in communications, organize and present supporting documentation, respond to auditor questions and proposed adjustments, and help protect your position throughout the process.

For experienced representation during your audit, reach us at (604) 683-2341 today.

Get Help With CRA Audit Representation

CRA Audit Help From Accountants-BC Ltd.

A Canada Revenue Agency audit can involve detailed requests for financial records, explanations of transactions, and responses to the auditor’s findings. Accountants-BC Ltd. provides CRA audit help throughout this process, representing you and handling the work required to respond accurately and thoroughly.

Depending on the scope of your CRA tax audit, our representation may include:

Reviewing CRA audit requests
Preparing supporting documentation
Communicating with the assigned auditor
Responding to questions and proposed adjustments
Addressing reported income or expense discrepancies
Assisting with post-audit reassessments

Every audit is different. We tailor our representation to the records under review, the questions raised by the CRA, and the specific tax issues involved.

Can a CRA Audit Representative Speak to the CRA for You?

Once you authorize a representative, they can communicate with the Canada Revenue Agency (CRA) on your behalf within the level of access you’ve granted. This can reduce the time you spend handling routine audit correspondence yourself.

You’ll still be responsible for providing accurate information and cooperating with legitimate audit requests. With professional representation, however, you’ll have experienced support managing those communications and responding appropriately throughout the audit process.

When Does CRA Audit Representation Make the Most Sense?

Not every CRA audit is highly complex, but professional representation can make the process easier while reducing stress and guesswork. Even if your situation seems relatively straightforward, you may still benefit from working with a trained accountant.

Our CRA audit help can be particularly valuable when:

The audit covers a business or multiple tax years
Records are missing or inconsistent
Personal and business transactions overlap
The auditor questions income or significant deductions
Repeated information requests become difficult to manage
You disagree with the proposed adjustments

You can also seek representation after an audit has already begun. A representative can step in at any stage to help you manage the audit and respond to the CRA.

Why Is the CRA Asking for Personal Records During a Business Audit?

A CRA business audit can extend beyond your company’s tax returns and accounting records. Depending on what the auditor needs to verify, the Canada Revenue Agency may request personal bank statements, credit card statements, mortgage documents, or records involving related individuals or entities.

These records can help the auditor compare reported business activity with other financial information and investigate discrepancies relevant to the audit.

What Happens if Your Books Don’t Match Your Bank Deposits?

If your bank deposits don’t align with your books, the CRA may use indirect verification of income (IVI) to determine whether your reported income is reasonable. These audit techniques can include analyzing bank deposits, estimating changes in net worth, and comparing financial ratios. The CRA uses IVI testing when records are inadequate or unreliable, or when an audit identifies a risk of unreported income.

A discrepancy doesn’t automatically mean you failed to report income. Transfers between accounts, loans, gifts, and other non-taxable funds can affect the numbers. Clear records explaining the source of these funds can therefore be important when responding to the CRA’s findings.

What if You Can’t Find a Receipt the CRA Requests?

A missing receipt shouldn’t be ignored during a CRA tax audit. If you can’t provide the document requested, other records may help establish what occurred, depending on the transaction under review.

Bank or credit card statements, invoices, contracts, correspondence, and other supporting records may provide useful evidence, but their relevance will depend on the expense, deduction, credit, or transaction the CRA is examining.

Our accountants can review the documentation you still have and help you prepare an accurate response. By explaining missing records and presenting relevant supporting evidence clearly, we can help prevent unanswered documentation gaps from complicating your audit.

What Should You Do if You Disagree With the Auditor’s Findings?

If you disagree with an auditor’s findings during a CRA tax audit, you can provide supporting documents and factual explanations before the audit is finalized. Addressing disputed findings at this stage gives the CRA additional information to consider, although it doesn’t guarantee that a proposed adjustment will be withdrawn.

If the audit results in an assessment or reassessment you believe is incorrect, you may have the right to file a formal objection. The CRA describes an objection as the first step in formally disputing an assessment when you believe the facts were misinterpreted or the law was applied incorrectly.

What Should You Avoid Doing During a CRA Audit?

How you respond during a tax audit can affect how efficiently the process moves forward. You should cooperate with the auditor and provide required access to relevant records, but your responses should also be accurate, organized, and consistent.

Common mistakes to avoid include:

Guessing when you don’t know an answer
Submitting disorganized records without explaining their relevance
Ignoring CRA correspondence or response deadlines
Providing conflicting explanations for the same issue
Waiting for reassessment before addressing proposed adjustments

Careful CRA audit representation can help you provide complete, well-supported responses and address concerns while there’s still an opportunity to clarify the issues under review.

Get CRA Audit Help Before Things Move Forward

Getting audited by the CRA doesn’t mean you have to manage the process alone. Accountants-BC Ltd. provides audit representation throughout the entire process. We can review audit requests, prepare and organize supporting documentation, communicate with the auditor, respond to proposed findings, and help you address the outcome.

Getting professional assistance early can give you more time to prepare clear, well-supported responses and address potential concerns as they arise.

Accountants-BC Ltd.