Understanding What Triggers a CRA Audit: A Comparison of Options

Dealing with the Canada Revenue Agency (CRA) may sound daunting. But understanding what triggers a CRA audit can help taxpayers comply and prevent unpleasant experiences. Let's delve deep into the various triggers that could potentially invite a CRA audit and explore the options to handle these situations by website, mobile app, and call centre.

CRA Audit Triggers

The CRA aims to maintain a fair taxation system. Therefore, it conducts audits to ensure correct income reporting, legitimate deductions, and proper claims. Several triggers can cause an audit:

• Discrepancies in your income tax return compared to information filed by third parties like banks or employers.
• Frequent changes in your financial condition.
• Consistently reporting business losses.
• Claiming extensively high expenses.

Options to Manage CRA Audit through the CRA Website

The CRA website provides a myriad of tools and resources to help taxpayers. Here's how you can manage a CRA audit on the website:

• My Account: This is an online portal where you can check your tax refund status, balances, transactions and track the progress of your audit.
• Submit Documents: In the event of an audit, you can submit required documents online through the ‘Submit Documents’ function under ‘My Account’.
• Dispute Resolution: If you disagree with the outcome of the audit, you can register a formal dispute online.

Options to Manage CRA Audit through the CRA Mobile App

For taxpayers who prefer mobile access, the CRA’s mobile apps offer functionality akin to the website. Here are key tools you can leverage:

• MyCRA: It effectively serves as 'My Account,' but on your mobile device. You can check your tax and benefit information, manage your tax affairs and address audit inquiries and requirements.
• MyBenefits CRA: This app provides a quick and secure way to manage CRA audits related to benefit and credit payments.

Options to Manage CRA Audit through the CRA Call Centre

Alternatively, you can also interact with the CRA through their call centres. The benefits include:

• Tax Information Phone Service (TIPS): TIPS is an automated telephone service that can answer most of your tax-related queries.
• Individual Income Tax Enquiries: For personal and general enquiries, you can call this line to speak to a CRA representative.
• Business Enquiries: If you are a business owner, you can call this line for audit queries pertaining to your business.

In conclusion, understanding what triggers a CRA audit can help mitigate potential risks. And with the three options that the CRA provides, managing an audit can be less daunting. Whether you prefer the website, mobile app, or call centre, there's an assistance platform that suits your convenience.

Remember, knowledge is power. The better you understand the CRA's procedures, the more adept you become at addressing audit concerns promptly and appropriately.