A CRA audit needs a coherent explanation of the full record
St. Catharines taxpayers may receive a CRA audit request involving a contractor, small or seasonal business, property, rental activity, GST/HST, payroll, personal banking, or a tax claim. The records may be spread across bookings, invoices, merchant reports, statements, receipts, leases, property files, and bookkeeping systems. CRA may see a deposit, a sales figure, or an expense claim without seeing the activity that explains it.
The audit letter normally identifies the years under review, account, documents requested, CRA contact, and response deadline. It may test income, expenses, GST/HST, payroll, property use, rental activity, deposits, or personal claims. The best response is built around the questions CRA is actually asking. It should explain the calculation and direct the auditor to the records that support it.
Tax Help Canada helps St. Catharines 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 deadlines create more pressure.
Start with the specific CRA issue
CRA may request bank statements, invoices, booking reports, receipts, contracts, GST/HST returns, payroll reports, property documents, or a written explanation. A deposit review may test income. A property question may concern rent, personal use, repairs, or a capital improvement. A worker-payment request can concern payroll deductions or contractor classification.
Business records may include sales reports, customer bookings, payment deposits, refunds, equipment, expenses, payroll, and GST/HST. Contractor files can include agreements, invoices, client payments, vehicles, tools, and supplier costs. Rental records can include leases, deposits, financing, taxes, insurance, repairs, and personal-use information. This first review identifies missing records early enough to obtain them from banks, suppliers, clients, tenants, property managers, former bookkeepers, or online platforms.
Reconcile income, deposits, and GST/HST
CRA may compare return income with invoices, bookings, deposits, payment reports, GST/HST filings, and third-party information. A deposit does not automatically represent income. It can be sales revenue, rent, tax collected, a transfer, loan proceeds, reimbursement, refund, or money received for another person. Significant items need a documented source.
We prepare schedules linking sales to invoices, bookings, or payment reports, rent to leases and deposits, and transfers to matching account movements. Loans, reimbursements, refunds, merchant fees, and other non-income deposits are supported by records. This helps explain why gross sales, deposits, and GST/HST may not match line by line.
Expenses need equal care. Vehicles, equipment, home office, supplies, travel, repairs, property costs, and payments to workers need proof and an income-earning purpose. Where personal use exists, the allocation should be reasonable and documented.
Connected accounts should give CRA one answer
An audit can start with one return but affect business banking, GST/HST, payroll, corporate records, rental activity, 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 fit the actual rental and personal use.
We review these links before detailed submissions are made. A deposit explanation should agree with books and GST/HST. Worker payments should fit payroll and expense records. This reduces inconsistent answers and helps identify potential tax, interest, penalties, payment, and collections exposure.
Reconstruct incomplete files from credible sources
Older records can be incomplete after a bank change, lost receipt, unavailable supplier, closed online account, or former adviser. Bank and card statements, suppliers, clients, tenants, contracts, email, property records, accounting backups, prior returns, and CRA information can support a factual reconstruction. The objective is the best accurate evidence available, not an unsupported estimate.
The reconstruction should make its method clear. Sales can be tied to invoices and deposits, expenses to statements and vendor records, and rent to lease and banking history. This gives CRA a practical way to test the explanation.
Manage communication and the audit 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 evidence, while keeping a log of requests and responses. If historic statements, duplicate invoices, payroll reports, or property records 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 time to respond. Once reassessed, objection deadlines, interest, penalties, payment arrangements, and collections concerns may follow.
Get a clear audit plan
If CRA has contacted you about a St. Catharines audit, a confidential review can make the next step manageable. We will review the years and accounts, CRA’s questions, available evidence, and the business, property, rental, or personal facts requiring explanation. From there, you can respond with an organized plan grounded in evidence.