6 tips to help steer clear of an income tax audit ...
- What's my chance of being audited?
Generally, it's pretty low if your return is simple and your deductions standard. If your return has self-employment income or your
income is based on commission, you have a high risk.
- Who gets audited most?
The CRA won't say, but it uses computer-generated algorithms to come up with norms within groups.
A huge year-over-year changes will raise flags.
most audit :Construction contractors, car dealers, jewellers and pharmacists, waiters, waitresses and bartenders
- File on time
do not send explanatory notes along with it. They only raise eyebrows and can cause larger problems.
- Be reasonable
Your expense claims and other deductions should fit the income you claim against it
- Keep proper records
having the paperwork on hand save time
- Respond promptly
if you disregard CRA queries they will rule against you by default
- Be polite
you don't diss police, customs officers or the tax man
- Get help
getting it right up front is the best way to avoid a problem