Lack of experienced CRA Reviews are Costing Taxpayers Money, says Chartered Professional Accountants in Vancouver
Vancouver, BC -- (ReleaseWire) -- 07/04/2019 --Over the last 12 months, the accountants at Mew and Company, a firm of Chartered Professional Accountants in Vancouver, have noticed the number of CRA reviews increasing noticeably. These reviews are typically not for an earth-shattering amount of GST or income tax. Rather they appear to be random audits to check if taxpayers are being honest. For more, go to: https://www.mewco.ca/blog/it-is-reassess-first-ask-questions-later-era-at-cra/
What seems to be happening is the initial CRA contact person who examines the documents provided either lacks in-depth tax experience or is given no authority to exercise judgment. A discrepancy of a small amount between filing and the general ledger is getting escalated to full review status.
Even when explanations are forthcoming, the contact person either does not understand accounting or lacks the authority to end the review process. This new method of using low-level staff at the start of the review process costs taxpayers money because professional advisors are needed to respond to the CRA requests and questions.
After an initial review was escalated to full review or audit status with qualified accountants on both sides working together, the review ended with no adjustment to the initial filing.
Another trend is reassessment with little input from the taxpayer. When an additional $2500 in GST was requested from the CRA, the taxpayer's accountant asked for proof of how this additional amount was calculated. No further correspondence other than a reversal of the reassessed amount was forwarded.
The CRA's new policy is to put the taxpayer on the defence from the start. The agency periodically issues reassessments with little or no support on how the reassessment came about, leaving it to the taxpayer to fight back. These practices are more costly to the less affluent because these are the taxpayers who are often without professional representation.
To learn more about reassessments or tax audit, contact the Chartered Professional Accountants at Mew and Company in Vancouver. Contact 604-688-9198 to schedule a consultation today.
About Mew + Company
Mew + Company, Vancouver, is an ideal solution to the taxation problem. With a simple philosophy of building long-lasting customer relationships, the company has been serving corporate clients in a variety of fields—including restaurants, real estate, retail, and the service industry. Investing in their specialist services will undoubtedly be fruitful for all kinds of clients.
To learn more about Mew + Company and discuss their services, log on to https://www.mewco.ca
Lilly Woo, CPA, CA, CFE, CFP
Mew + Company Chartered Professional Accountants
604 688 9198
Company Website: https://www.mewco.ca