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New Member
posted Oct 29, 2019 11:40:34 PM

A friend has been asked to repay the tax refund they received for business expenses. Should they appeal or should they ask the auditor why the expenses were disallowed?

My friend believes that they didn't explain the nature of their business properly to the CRA auditor during the audit process. They were wondering if reaching out to the auditor and asking if they could meet with the auditor to have them explain the reason for disallowing the expenses would give them a chance to clear up any misunderstandings before initiating a formal appeal. Thank you for your help!

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1 Best answer
Level 2
Oct 29, 2019 11:40:36 PM

It may depend on what expenses were disallowed and why they were disallowed.  The expenses may not have related directly to the business, or they may not have been properly supported by documentation.  If expenses were disallowed, there would have been a reason given for doing so.

2 Replies
Level 2
Oct 29, 2019 11:40:36 PM

It may depend on what expenses were disallowed and why they were disallowed.  The expenses may not have related directly to the business, or they may not have been properly supported by documentation.  If expenses were disallowed, there would have been a reason given for doing so.

New Member
Oct 29, 2019 11:40:37 PM

Thank you so much for your very helpful response. I understand, from what my friend told me, that no explanation was given for the expenses having been disallowed. Given this, I think it would probably be best for him to call the auditor so that he can ask why they were disallowed. This will allow him to either clear up any misunderstanding or take steps to ensure that he doesn't make similar mistake(s) in future. Thank you so much once again.