Tax Audit
Professional Representation and Support During CRA Tax Audits
Receiving a tax audit notice from the Canada Revenue Agency (CRA) can be stressful and confusing—but it doesn’t have to be. Whether you’re a small business, self-employed professional, corporation, or individual taxpayer, Tax Accountants Scarborough at MAQ CPA accounting firm provides reliable tax audit support that protects your interests and ensures you’re treated fairly.
Our CPA tax accountants help you respond to CRA requests, organize records, defend your filings, and avoid costly reassessments or penalties. If you’re being audited or reviewed, get professional support on your side—fast.
Who Can Be Audited by the CRA?
The CRA can audit any taxpayer—individuals or businesses—but audits most often occur when:
- Income doesn’t match CRA data (T4s, T5s, T5018s, etc.)
- Significant business deductions or losses are claimed
- Operating in high-cash or high-risk industries (e.g., trades, real estate, restaurants)
- Random selection for audit or review
- Late or inaccurate filings raise red flags
- Claiming GST/HST rebates or SR&ED credits
- Operating as a self-employed or incorporated business
A tax audit typically involves the CRA reviewing your financial information, bank records, tax returns, and supporting documents.
Source: CRA – Tax audits
Our Tax Audit Services Include:
Our Tax Accountants Toronto provide complete support at every stage of a CRA audit, review, or examination:
- Review and interpretation of the CRA audit letter
- Communicating directly with the CRA on your behalf
- Preparing and organizing supporting documentation
- Responding to Information Requests for reviews or onsite audits
- Reviewing prior year returns to correct inconsistencies
- Representing you in CRA meetings, correspondence, and appeals
- Minimizing audit risk through documentation strategies
Audit Timelines, CRA Process, and Penalties
🔹 CRA Audit Timeline:
- Initial contact usually begins with a letter or phone call
- You may be asked to provide documents within 15 to 30 days
- CRA auditors can take weeks or months to review and assess, depending on complexity
🔹 What the CRA Looks At:
- Income underreporting
- Unsubstantiated deductions or expenses
- GST/HST compliance and ITC claims
- Owner withdrawals, shareholder loans
- Personal vs. business expenses
- Payroll tax remittances
🔹 Penalties and Consequences:
- Reassessment of taxes owing
- Penalties up to 50% of tax avoided (for gross negligence)
- Daily compounded interest on outstanding balances
- Possible criminal investigation for tax evasion (in rare, extreme cases)
Why Choose Us for Tax Audit Representation?
✅ Trusted Tax Accountants by Toronto businesses, professionals & individuals
✅ Direct representation with CRA so you don’t have to
✅ Clear strategy to minimize reassessments and penalties
✅ Years of CRA audit and appeals experience
✅ We handle audits involving GST/HST, self-employed, or corporate issues
✅ Transparent communication and full confidentiality
Frequently Asked Questions (FAQs)
1. What triggers a CRA tax audit?
Common triggers include unusual deductions, mismatches in income reporting, cash-intensive businesses, or claiming refundable tax credits. CRA also selects some files randomly.
2. What happens during a CRA audit?
The CRA may review your tax returns, bank records, invoices, receipts, contracts, and other documentation to verify reported income and expenses.
3. Can you talk to CRA on my behalf?
Yes. As your authorized representative, we can handle all CRA communication, prepare documents, and attend meetings or respond to requests directly.
4. Do I need a tax lawyer or a CPA for a CRA audit?
Unless there’s a criminal issue involved, a CPA with CRA audit experience is the best first line of defense. We’ll ask you to escalate the matter to legal counsel only if needed.
5. What if I disagree with the audit result?
You can file a Notice of Objection within 90 days of reassessment.
Don’t Face the CRA Alone — Call Our Tax Audit Experts Today
A CRA audit can be overwhelming—but you’re not alone. Get our Tax Professional Toronto support you need to protect your income, your business, and your peace of mind.
📅 Book Consultation with a Tax Accountant Toronto: Schedule Here
📧 Email us: info@maqcpa.ca
📞 Call us: (416) 901-4126