Based on the latest probe conducted by the federal auditor general, the CRA or the Canada Revenue Agency is not fair when it comes to taxpayers’ files that are under audit or review. This uncertainty is what prompts many to get CRA audit protection because they don’t want to find themselves in the middle of an audit while losing a lot of money in the process.
CRA is the government body responsible in ensuring that every Canadian is filing their taxes the right way. They are also the ones conducting audits and reviews to files that have been submitted to make sure it follows the Income Tax Act of the country.
Recently, a new audit was spearheaded by the office of Michael Ferguson who is the current Auditor General. There they found out that a number of factors could affect the process of reviewing or auditing including the identity of the person being audit, the staff person under CRA who was in-charge of the review and the location where the taxpayer is based.
For instance, there are times when the CRA will not honour expense claims if the receipt is not submitted to them within 90 days times but the time limit of submission for offshore accounts is much longer because they are given at least a few months and for some even a few years in order to submit the requirements.
The audit revealed that the Canadian Revenue Agency does not follow a consistent rule when it comes to reviewing or auditing the files of the taxpayers. This is despite the Taxpayer Bill of Rights which states that everyone has the right for consistency where the law applies. The bill also states that every taxpayer should only pay the amount they owe and be paid with the amount they are entitled to receive.
Every year, the CRA performs a number of compliance activities in order to check the accuracy of the tax claims in line with the bill. Inconsistence are prevalent thought which is why CRA audit protection is taken by individuals and companies alike to make sure they are protected in case of audits and reviews.