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If you are being audited; Read This First!
Posted By Dan White On December 2, 2009 @ 5:58 pm In Tax Topics | No Comments
If you are being audited; Read This First!
Canada Revenue Agency (CRA) has one objective. Their sole reason for existing is to collect more and more money from Canadians. You are up against a well-oiled machine that is out to get as much booty from you as they possibly can. Don’t think for one second that there will be any kindness or overlooking of things when it comes to audits and collections.
To think that you are dealing with an agency that is set up for any other purpose than to collect revenue in Canada is not only naive, but it is missing the point that CRA’s mandate is to get as much money as they can.
CRA has risen to a new level of sophistication by way of technology. Data mining, snitch lines fed by disgruntled employees and angry X spouses have resulted in a never before numbers of audits.
CRA treats the collection of revenue as serious business, and if you don’t also treat it as serious business, your financial head is on the chopping block. Your savings and assets will be severed from your ownership by a well-orchestrated swing of the tax man’s axe.
There are so many audits going on by the now over seven thousand auditors in Canada, that CRA is six months behind in their case work. That does not mean that they will not get to it, what it does mean is that they will hire more auditors.
And just where are those auditors going to come from? Auditors already trained in the art of extraction of money? If you guessed the BC and Ontario provincial sales tax auditors, you are right. Good by to the PST auditors and Hello HST auditors. Thousands to trained hit men will join the ranks of CRA.
When the new auditors join the ranks of CRA, then the work will be all laid out for the new army of auditors who will speed up the audits.
If you have received that phone call or the letters from CRA telling you that you are going to be audited, then you need to get help before you talk to them.
Call us now at 1-905-668-4816 and tell the operator that this is a tax emergency.
If it is late at night, and you cannot sleep because of the stress this is causing you, and you just found us on the internet, then email us at info@tax-audit-solutions.com and use the word “EMERENCY” in the subject line. If you have just sent that email, you will hear from us first thing in the morning.
If you want to read on for more valuable insight into the workings of our tax regime, then read on;
You may not know that although Canada Revenue Agency is officially part of the
Government of Canada, since December, 2003, CRA has acted as an independent
agency working for the federal government and most of the provinces.
CRA administers most individual and corporate income taxes in Canada. It also
administers the Goods and Services Tax (GST) in all provinces except Quebec,
where Revenu Quebec administers both the QST and GST. In Nova Scotia, New
Brunswick and Newfoundland & Labrador, the GST has been replaced with the
Harmonized Sales Tax (HST) which is administered by CRA. On March 26, 2009, the
Government of Ontario proposed that the Ontario Retail Sales Tax be harmonized
with the GST on July 1, 2010. Although no announcement has been made, it is
likely this harmonized tax will also be administered by CRA.
The introduction of HST will cost Ontario taxpayers billions of dollars over the next
decade by taxing all kinds of essential items, such as heating fuel, gasoline and
everything that is currently PST exempt. If you write your MP and promise that the
next 5 generations of your family will never vote for the party if the bill passes, you
can defeat the HST. If you think your neighbour will look after that, it will pass for
sure. If you want to reduce your future taxes, this is one easy way to do so.
Governments do not enact bills that are wildly unpopular.
CRA has two main responsibilities: to collect taxes and administer tax law. There is
even a separate court, the Tax Court of Canada, to oversee justice with respect to
tax law. Unlike other courts in Canada, at Tax Court, you are considered guilty until
proven innocent.
CRA is a business, and like any business, it has to watch its bottom-line very
carefully. Auditing a taxpayer is expensive and, even though CRA gets its funding
from 10% of our taxes, they won’t waste the time and money required to perform
an audit unless they feel there is a good chance of making a decent return on their
investment.
What does this mean for you? It means that CRA has already pre-determined that
auditing you is a good investment. The auditor’s mandate is to go after you
aggressively to obtain the most money possible. Fairness is not part of the
mandate - maximum profit is the name of their game. If you don’t realize this from
the outset, you are in for a very rough ride.
We know that most taxpayers don’t try to cheat the tax man — it’s too difficult and
risky. However, most taxpayers don’t save all their receipts and keep audit-proof
books. CRA relies on those statistics to gain leverage when auditing. They’re
hoping that because you have been honest and fair in preparing your tax returns,
that you expect them to return the favour, in kind. As you will discover exploring
this site, that is not likely to happen.
No, this is a battle. CRA has already targeted you and developed a strategy for
winning. You need to recognize that and arm yourself appropriately to prevent your
financial slaughter.
For more information go to [1] www.tax-audit-solutions.com or [2] www.danwhite.ca
Dan White
Article printed from Blog: http://blog.danwhite.ca
URL to article: http://blog.danwhite.ca/2009/12/02/if-you-are-being-audited-read-this-first/
URLs in this post:
[1] www.tax-audit-solutions.com: http://www.tax-audit-solutions.com
[2] www.danwhite.ca: http://www.danwhite.ca
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