CRA Audit: Know Your Past, Secure Your Future

The Canada Revenue Agency (CRA) audit is an essential mechanism to ensure tax compliance. It helps in verifying that taxpayers, both individuals, and corporations adhere to the tax laws and accurately report their financial conditions. To understand the scope, processes, and how far back can the CRA audit go, it is crucial to be informed and prepared. We will guide you through the process and provide options on how to interact with the CRA using their website, mobile application, and call centre.

Understanding The CRA Audit

An audit from CRA is a review of an individual or organization’s financial information to ensure that everything is reported correctly on their tax return. Audits examine things like income, expenses, and credits. The CRA selects files to audit based on several factors such as risk assessment, random selection, or due to the relationship between an individual or a business with other taxpayers who have been selected for audit.

CRA Audit: How Far Back Can It Go?

Many are often concerned about how far back the CRA can audit. According to the Canadian law, the CRA typically has the right to review your returns for the three past tax years. However, if they find that you made false statements due to carelessness, neglect, or wilful default, they can go as far back as feasible. Being familiar with the potential duration of an audit check can make the process less daunting.

Interacting With CRA: The Website Option

One of the easiest ways to interact with the CRA is through its website. The website contains a vast amount of information that can help you understand various tax aspects, including audits. You can download forms, check your account, track your refund, make a payment, and more. It also has a user-friendly interface, making it very easy to navigate.

Interacting With CRA: The Mobile App Option

For individuals who prefer accessing information on their smartphones, the CRA has a mobile app option. The mobile app, MyCRA, is a fast and straightforward approach to access services. The app provides an array of services, like viewing tax return status, setting up direct deposit, checking TFSA and RRSP limits, and much more. With its seamless navigation, you can remain updated and informed about your taxation matters.

Interacting With CRA: The Call Centre Option

Despite the advancement in technology, some people still find human interaction the best form of communication. The CRA has dedicated call centres where a representative will guide you through your queries. They can provide information on tax rates, tax return status, payment arrangements, and a variety of other topics. It is an excellent option for individuals who prefer speaking directly with a representative for immediate clarification.

Conclusion

No matter your preferred method of communication, the CRA has something for everyone. It's important to remember that an audit is not a punishment but rather a process to ensure that all taxpayers are compliant with the law. Even though audits can seem intimidating, being prepared, informed and knowing the different options available to you can make it less daunting. Remember, when it comes to taxes, knowledge is power.