Investing in CRA audit protection is particularly beneficial to individuals and businesses because they no longer need to worry about the professional fees that will be charged when responding to official enquiries. Disagreements between accountants and clients are avoided because there is a cost effective solution that covers expenses in responding to tax audits and investigations.
Tax season is just around the corner and Canadian Revenue Agency is reminding people and businesses to be more vigilant against fraudsters. Scammers are one of Canada’s latest problems because they create fear that interactions with an individual claiming to be from CRA are some kind of trick. While it is true that CRA contacts taxpayers, it is important to determine whether the person is a genuine CRA employee to protect both financial and personal information.
There are several instances when CRA interacts with taxpayers. CRA will call to discuss the tax returns filed and request for payment if they think that you owe the government some taxes. CRA may also inquire about a missing tax return if you failed to submit one. Taxpayers can also be questioned about benefit records and documents.
CRA will verify identity by requesting for the full name, date of birth, address or social insurance number. They may call again to inform you that they will start an audit process on your tax returns. CRA will not ask for information related to passports, health cards and driver’s license. They do not threaten with aggressive language or arrests. CRA does not demand immediate payment through bitcoins, e-transfers, prepaid credit cards or gift cards.
CRA usually sends messages by email which can be viewed on secure CRA portals like My Account, My Business Account or Represent a Client. CRA may send a notice of tax audit, assessment or reassessment by mail. CRA does not send texts or messages through Messenger or WhatsApp.
It is indeed stressful to receive a written communication from CRA informing you of an audit. If your accountant offers CRA audit protection, agree to it because it will save you from financial ruin. Responding to a tax audit can result to substantial professional fees.