Tax Audit

Une vérification fiscale, c'est quand le gouvernement examine de près vos documents comptables et vos déclarations pour vérifier que vous avez payé le bon montant d'impôts et de taxes. Au Canada, c'est l'ARC (Agence du revenu du Canada) ou Revenu Québec qui la mène, par courrier ou sur place, sur une ou plusieurs années.

Brief

Menée par l'ARC (Agence du revenu du Canada) ou Revenu Québec, souvent à cause d'un simple recoupement de données
It often targets sales taxes (VAT and VAT), expenses you have deducted from your taxes, and payroll deductions from your employees.
Keep all your proof of purchase (invoices, receipts) for at least six years.
You have the right to contest the result: first an objection, then an appeal if necessary.

Why does this matter?

Receiving a notice of audit isn't an accusation: every year, the IRS and the IRS review thousands of businesses, often simply because a figure doesn't match their data. What makes all the difference is the organization of your documents. Imagine two boxes of receipts: one neatly filed by month, the other a jumbled mess. The first makes the audit a simple formality; the second opens the door to recalculated taxes against you, with interest and penalties. If a notice arrives, don't go it alone. Bankeo connects you with a verified accountant/CPA, free of charge, who knows exactly what to provide, and we'll be there to support you.

Frequently asked questions

What exactly does a tax audit mean?

This is an audit: the government (the CRA or the tax authorities) is asking you to provide supporting documentation to prove that the amounts reported on your tax returns are accurate. They may review your invoices, bank statements, and business mileage. This can be done by mail for a single point, or in person for a full review. Being selected does not mean you have committed fraud.

How many years back can the government go?

Generally, the tax authorities can review and correct your taxes up to three years after the first tax assessment (the document that confirms your taxes for the year), and sometimes four years for certain incorporated businesses. However, if they suspect deliberate misrepresentation, this limit is lifted, and they can go back much further. That's why we keep our evidence for at least six years.

What should I do when I receive a verification notice?

Stay calm, carefully note down what is requested, and entrust the file to an accountant as your official representative before sending anything. We provide exactly what is requested, nothing more, and on time. Don't have an accountant? Bankeo will connect you with one free of charge—a verified accountant/CPA experienced in handling these checks—and we'll be there to support you.