A CRA audit needs a complete explanation of the records
Schomberg taxpayers may receive a CRA audit request involving a contractor business, rural or farm-related activity, rental property, GST/HST, payroll, personal banking, or a deduction claimed on a return. Records can be spread across invoices, statements, receipts, equipment files, property documents, contracts, email, and bookkeeping software. CRA may see a transaction on a return or an account without seeing the practical facts behind it.
The audit letter normally sets out the years under review, account, requested information, CRA contact, and deadline. It may test income, expenses, GST/HST, payroll, property use, rental activity, deposits, or a personal claim. The response should be organized around that question and should explain how the reported figures were calculated. A broad collection of documents can be less useful than a focused schedule with evidence.
Tax Help Canada helps Schomberg residents, contractors, business owners, landlords, property owners, and families manage CRA audit files. We review the scope, organize evidence, prepare reconciliations and explanations, communicate with CRA, and help assess a proposal or reassessment before time limits create more pressure.
Start with the issue CRA is testing
CRA may ask for statements, invoices, receipts, contracts, GST/HST returns, payroll reports, property records, equipment records, or a written explanation. A deposit review may test income. A property request can concern rent, personal use, repairs, or a capital improvement. A worker-payment request may concern payroll deductions or contractor classification.
For a contractor or rural business, records may include customer invoices, client payments, equipment, vehicles, supplies, expenses, payroll, and GST/HST. Property and rental files can include leases, deposits, financing, taxes, insurance, repairs, and periods of personal use. This first review identifies missing evidence early enough to request it from banks, suppliers, clients, property managers, former advisers, or online accounts.
Reconcile income, deposits, and tax collected
CRA may compare income reported on a return with invoices, deposits, payment reports, GST/HST filings, and third-party information. A deposit is not automatically income. It may be sales revenue, rent, tax collected, a transfer, loan proceeds, a reimbursement, a refund, or money received for another person. Material amounts require a credible source.
We prepare schedules that connect sales to invoices and payment reports, rent to leases and deposits, and transfers to other account movements. Loans, reimbursements, refunds, merchant fees, and other non-income amounts should be supported. This helps explain why gross sales, bank deposits, and GST/HST may not match line by line.
Expenses need the same discipline. Vehicles, equipment, home office, supplies, travel, repairs, property costs, and payments to workers should be supported and linked to an income-earning purpose. Where personal use exists, the allocation should be reasonable and documented.
Property, equipment, and personal reporting can connect
An audit may begin with one return but affect business banking, GST/HST, payroll, rental activity, corporate records, property use, and personal reporting. A sole proprietor’s sales should fit deposits and GST/HST. An incorporated owner can have payroll, shareholder transactions, business expenses, and personal income. Property costs should make sense given the actual business, rental, and personal use.
We consider these connections before detailed submissions are sent. This reduces inconsistent answers and helps identify potential tax, interest, penalties, payment, and collections exposure.
Rebuild incomplete records with credible sources
Older records may be incomplete after an account change, lost receipts, an unavailable supplier, a closed online account, or a former bookkeeper. Bank and card statements, suppliers, clients, contracts, email, property records, equipment records, accounting backups, prior returns, and CRA information can support a factual reconstruction. The objective is the best accurate evidence, not an unsupported estimate.
The reconstruction should explain the method. Sales can be tied to invoices and deposits, expenses to statements and vendor records, and property income to leases and banking history. This gives CRA a practical way to test the response.
Control communication and the deadline
CRA may follow up by phone, letter, email, meeting, or secure upload. We help prepare written submissions identifying the audit question, facts, calculation, and support, while keeping a log of requests and responses. If historic statements, duplicate invoices, payroll reports, or property documents are still being collected, that should be raised before the deadline. In appropriate circumstances, CRA can be asked for more time.
Review a proposal before reassessment
CRA may accept the reporting, request final information, send a proposal, or issue a reassessment. A proposal can reveal an overlooked document or incorrect assumption while there is still a chance to respond. Once reassessed, objection deadlines, interest, penalties, payment arrangements, and collections concerns may apply.
Get a clear audit plan
If CRA has contacted you about a Schomberg audit, a confidential review can make the next step manageable. We will review the years and accounts, CRA’s questions, available records, and the business, property, rural, rental, or personal facts requiring explanation. From there, you can respond with an organized plan grounded in evidence.