Audit Requests
Have you received any letter from Revenue Canada
asking you to provide certain documentary evidence for payment of an expense you
claimed on your 2003 income tax return? Don’t panic. Number of such requests
over the last few years has increased substantially.
Don’t worry. When you receive such a notice,
first thing you do is Sit Down and Take 3 Deep
Breaths – then read it again and try to understand what they are
requesting. Send them the receipts they are requesting, returning
with the letter from Revenue Canada. If you have difficulty
understanding these letters, contact us immediately. You must
respond within 30 days, otherwise they will re-assess you
and ask for more tax money to be sent to them.
CRA reserves
the right of inspecting any document(s) for a tax year within
THREE YEARS FROM THE DATE OF ASSESSMENT NOTICE. So please,
keep all receipts and records in a safe place for at least
FOUR years, just in case.
During the last year, the
most common items that were requested by CRA included receipts
for:
The
above is for your information only. For specific reference, please
consult Income Tax Act. E&OE
|
