CRA is looking to reduce government deficits and increase tax collections. This is the reason why tax audits are on the rise. When CRA goes through the Tax Returns in Mississauga and other places to make sure expenditure, income and credits are accurately reported it is termed as tax audits.
A tax audit can happen even when there is no red flag on a tax return and the best way to avoid it is by being completely true about your deductions.
1. Maintain adequate and complete book of records according to laws pertaining to tax returns in Brampton and other places.
Tax payers in Canada need to maintain complete records and books according to Canadian tax laws for a period of at least six years. All proof of payments and receipts should be disclosed in the tax return. In case anyone is not able to provide related documents to CRA than they may face comprehensive tax audit.
2. File Taxes within Time limit
It is every taxpayer’s responsibility to pay the taxes in time. It will not only prevent them from paying additional money in the form of penalties and interest, but it will reduce the chances of audit. Show to the authority that you are a responsible citizen and you will never have trouble.
3. Keep yourself updated for rules related to tax returns in Oakville and other places
One and off changes are made in tax return policy. It is an individual’s responsibility to maintain the ratio of revenues to expenditure consistent for every year. In case there is fluctuation than it may take the attention of CRA.
4. Do not make any error
It is quite likely that a tax return may be called upon by CRA in case any error is found in the process of Tax returns in Milton. Before you file return, you should make sure everything is accurate and complete. In case a mistake comes to your notice after filing tax returns in Mississauga, it is better to take corrective actions before it comes to the notice of CRA.