A CRA audit needs the facts behind the documents
Petawawa taxpayers may receive a CRA audit request involving employment income, a move, contractor work, a small business, rental property, GST/HST, payroll, personal banking, or deductions claimed on a return. A family may have changed addresses, bank accounts, employers, or advisers over the years. A business owner may have records split between invoices, payment apps, statements, receipts, and accounting software. CRA needs enough evidence to understand how the reported tax position was calculated.
The notice normally identifies the years under review, the account, requested documents, the CRA contact, and a deadline. It may concern reported income, expenses, GST/HST, payroll, property use, rental activity, deposits, or an employment-related claim. The response should answer those questions directly. A folder of unlabelled material does not explain why a deposit was not income or why a cost was eligible.
Tax Help Canada helps Petawawa residents, military families, employees, contractors, business owners, landlords, property owners, and families manage CRA audit files. We review the audit scope, organize evidence, prepare reconciliations and explanations, communicate with CRA, and help assess proposals or reassessments before response windows narrow.
Identify the actual issue before replying
CRA may request statements, invoices, receipts, contracts, income slips, payroll reports, GST/HST returns, property records, or a written explanation. A review of deposits can test income. A claim review can ask whether a cost was incurred, whether it relates to the taxpayer, and whether the records support it. A worker-payment request can concern payroll deductions or the classification of a contractor.
For an employee or military family, records may include income slips, benefit information, move documents, employer letters, receipts, travel records, and banking. For a contractor, they can include contracts, invoices, client payments, vehicles, equipment, expenses, and GST/HST. For a rental property, they may include leases, deposits, financing, taxes, insurance, repairs, and personal-use information. This initial review identifies missing evidence early enough to obtain it from an employer, bank, supplier, client, property manager, former bookkeeper, or online portal.
Reconcile income and bank deposits
CRA may compare the income reported on a return with income slips, invoices, deposits, payment reports, GST/HST filings, and third-party information. Not every deposit is income. It may be employment income already reported, a sale, rent, tax collected, a transfer between accounts, loan proceeds, a reimbursement, a refund, or money received for another person. Important amounts need a documented source.
We prepare schedules that tie business sales to invoices and payment reports, rent to leases and deposits, and transfers to a corresponding account movement. Loans, reimbursements, refunds, allowances, and merchant fees are supported by records. This gives CRA a coherent route through the evidence and reduces the risk that a non-income amount is treated as undeclared income.
Expenses deserve the same attention. Vehicle costs, equipment, home office amounts, supplies, travel, property costs, and contractor payments need records and an income-earning purpose. When an expense has personal use, the allocation should be reasonable and consistently applied.
Employment, property, and business accounts can connect
An audit can begin with a personal return but affect more than one tax account. A contractor’s personal reporting can connect to business banking and GST/HST. An incorporated owner may have payroll, shareholder transactions, business expenses, and personal income. A property file can connect to rental records and deposits.
We consider those links before detailed submissions are made. A deposit explanation should agree with the business books and GST/HST returns. Worker payments should fit payroll and expense records. Property costs should fit the actual rental and personal use. A connected review helps avoid contradictory answers and identifies possible tax, interest, penalties, payment, and collections exposure.
Reconstruct older files with credible evidence
Records may be incomplete because of a move, a bank change, lost receipts, an unavailable supplier, a closed online account, or a former bookkeeper. Bank and card statements, employers, suppliers, clients, contracts, email, property files, accounting backups, prior returns, and CRA information can support a factual reconstruction. The objective is not to invent a result. It is to assemble the best accurate evidence available.
A reconstruction should show its method. Sales may be tied to invoices and deposits. Expenses can be tied to statements and vendor records. Employment claims can be tied to relevant receipts and employer information. Clear working papers make it easier for CRA to test the answer.
Manage communication and timing carefully
CRA may follow up by phone, letter, email, meeting, or secure upload. Details should be checked against the records before an answer is given. We help prepare written submissions that identify the audit question, the facts, the calculation, and the supporting documents, while keeping a record of requests and responses.
A deadline is important, but it should not force an improvised explanation. If older statements, duplicate receipts, payroll reports, or employer records are still required, identify that promptly. In appropriate circumstances, CRA can be asked for more time before the deadline with a clear explanation of what is being collected.
Review a proposal before reassessment
CRA may accept the reported position, request final information, send a proposal, or issue a reassessment. A proposal can reveal an overlooked document or incorrect assumption that can still be addressed. Once CRA reassesses, objection deadlines, interest, penalties, payment arrangements, and collections concerns may apply.
Get a clear audit plan
If CRA has contacted you about a Petawawa audit, a confidential review can make the next step manageable. We will review the years and accounts, CRA’s questions, the available records, and the employment, business, property, or personal facts that need explanation. From there, you can respond with an organized plan grounded in evidence.