Since most tax returns are netfiled, CRA does not get any information other than is what is sent in the return. For this reason, after tax time, they send out requests to see the support. It is not the same thing as an audit, where they request all of your business and payroll records for the past three years.
Usually, all you have to do is follow the instructions on the letter, collect your receipts, keep a copy for your own records, copy the requested schedules from the copy to saved for your records, (you did save a copy, right?) and then fax it all off to them.
In about six weeks, you will get a letter back saying all is well. If they get back to you and disallow your deductions, then get in touch with support and they will get you in touch with the audit team.
Since most tax returns are netfiled, CRA does not get any information other than is what is sent in the return. For this reason, after tax time, they send out requests to see the support. It is not the same thing as an audit, where they request all of your business and payroll records for the past three years.
Usually, all you have to do is follow the instructions on the letter, collect your receipts, keep a copy for your own records, copy the requested schedules from the copy to saved for your records, (you did save a copy, right?) and then fax it all off to them.
In about six weeks, you will get a letter back saying all is well. If they get back to you and disallow your deductions, then get in touch with support and they will get you in touch with the audit team.
CRA audits don't just ask for "all of your business and payroll records for the past three years" as Delph has stated. They may ask for just one specific category of business expenses e.g. travel, auto or meals/entertainment. Also they may ask for whatever time period they are interested in. Or as Delph states they may ask for everything.
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