How Far Back Can CRA Audit Your Business: A Comprehensive Guide

The Canada Revenue Agency (CRA) can be daunting for any business owner. Investigating specific tax years, daily records, or even entire business operations are entirely within its purview. Consequently, it's valuable to know just how far back the CRA can audit, and the procedures involved. Here's a detailed three-way guide revealing how you can navigate this potential occurrence via CRA's website, mobile app, or call centre.

Website: Immediate Information on CRA Audits

One of the most convenient resources to tap into for information on CRA audits is the agency's official website. Here, business owners can access a wealth of information on CRA audits, including the audit process, requirements, and the period for which the CRA can audit.

As per the CRA, the standard audit period extends back six years from the current year. However, when the agency suspects potential fraud or intentional miscalculations, this period can extend indefinitely. The website's 'Businesses – Audits' section provides a detailed walkthrough of the audit process, including records gathering, audit announcement, and the final report preparation.

MyBusiness CRA App: Personalized Business Audit Info

'MyBusiness CRA' is the official application meticulously designed to provide personalized taxation information for Canadian businesses. The app provides access to your specific business tax information, including audit periods, tax filing statuses, and real-time updates.

Accessing audit information on the app is pretty straightforward – after logging in, navigate to the 'Business Audit' tab under 'Account details.' Here, you can view the status of any ongoing audits, years audited, and any possible penalties. If the CRA has audited your business, the details will be listed chronologically, so it's easier to keep track. And yes, just like the website, the app indicates that the standard audit period is six years – extended indefinitely if fraud is suspected.

Call Centre: Talk Directly to CRA Representatives

For business owners who prefer direct communication, the CRA call centre is an indispensable tool. CRA representatives are highly knowledgeable about the agency’s mandates and operations, including audits. They're equipped to answer all questions related to tax audits, especially those specific to your business.

To get information on how far back your business can be audited, call the CRA's business enquiries line - 1-800-959-5525. It's important to note that you will need specific identifiers, like your Business Number (BN), for personalized information. Do remember that wait times can be long, and the service hours are Monday to Friday, 9 am to 6 pm local time. Don't forget to ask about the six year period, and under what conditions this period can be extended.

Staying informed about CRA's auditing practices will help you efficiently manage your tax obligations and remain in compliance. As a smart business owner, utilize these channels — the website, the MyBusiness CRA app, and the call centre — to your advantage. Remember, it's always better to stay ahead with knowledge than be caught unawares.