by Neil Mathieson, CPA, FICB
As you know, my commitment to you is to keep you updated and informed about our friends at the Canada Revenue Agency, with respect to tax tips, traps and opportunities.
Although the content of this newsletter offers solid advice, it is still general in nature.
In every case, I do wish you to contact me to discuss your specific tax circumstances since each person’s situation is unique and different.
In 2015, the CRA will be conducting its Sixth Annual Office Audit Letter Campaign. The CRA announced on December 8th, 2014 the following:
“The campaign supports the CRA’s increased emphasis on helping individuals and small businesses to better understand their tax obligations and encouraging them to correct any inaccuracies in their past income tax and benefit returns.
The CRA will send about 33,000 letters to randomly selected taxpayers who claim business or rental losses or are employees who claim employment expenses on line 229 of their tax return.
The campaign is part of the CRA’s efforts to encourage voluntary compliance among groups of taxpayers who, our research indicates, may be at risk of non-compliance.
The CRA gives taxpayers a chance to come forward and correct their tax affairs through My Account, a T1 Adjustment Request, or the Voluntary Disclosures Program, and taxpayers are taking advantage of these opportunities.”
If you receive such a letter under this audit campaign, it is important that you contact me immediately.
As always, I encourage all taxpayers to file as complete and current return as information allows.
This CRA initiative, while ostensibly meant to assist taxpayers, has in past years, when errors have been uncovered, been aggressive and vigorous in their tax return reassessments, with substantial interest penalties levied.
Finally, now would be a great time to get your tax documents together since tax season is just around the corner! If you need me, I am just a phone call away!