Death, Taxes And Audits | FBC, Canada's Farm & Small Business Tax Specialist

Death, Taxes And Audits

You may recall some old new headlines - major GST scams skimming off millions of dollars with illegitimate Input Tax Credit filings.  The embarrassment this has caused the government was certain to create some changes in the way CRA works.  But, these changes weren't necessarily aimed at the crooks.

Over the years, CRA added thousands of new auditors to its ranks and continues to do so.

CRA has also proposed a new cash incentive program for audit managers based on increased audit turnover and additional tax revenues generated.

Although no one will quibble with improving CRA efficiency, it is the regular tax filer who will come under greater scrutiny and not the people who are deliberately defrauding the system.

Expect more and harder-nose audits, faster turnover, more mistakes and more appeals.

"Many people take no care of their money till they come nearly to the end of it, and others do just the same with their time." — Johann Wolfgang von Goethe