A CRA audit needs a complete explanation of the record
Tecumseh taxpayers may receive a CRA audit request involving a contractor, local business, rental property, GST/HST, payroll, personal banking, cross-border information, or a deduction claimed on a return. The supporting documents can be held in invoices, contracts, payment systems, bank accounts, receipts, lease files, email, and accounting software. CRA may see a transaction or a return amount without seeing the business and personal facts that explain it.
The audit letter normally identifies the years under review, account, information requested, CRA contact, and deadline. It may test income, expenses, GST/HST, payroll, property use, rental activity, deposits, or foreign reporting. A good response is organized around the issue CRA is testing. It should explain how the reported figures were calculated and direct CRA to the supporting records.
Tax Help Canada helps Tecumseh residents, contractors, business owners, landlords, property owners, and families manage CRA audit files. We review scope, organize evidence, prepare reconciliations and explanations, communicate with CRA, and help assess a proposal or reassessment before deadlines create more pressure.
Start with CRA’s question and the relevant account
CRA may ask for bank statements, invoices, receipts, contracts, GST/HST returns, payroll reports, property documents, foreign records, or a written explanation. A deposit review can test income. A property request may concern rent, personal use, repairs, or a capital improvement. A worker-payment question can concern payroll deductions or contractor classification.
Business and contractor files may include agreements, customer invoices, payments, vehicles, equipment, expenses, payroll, and GST/HST. Rental files can include leases, deposits, financing, taxes, insurance, repairs, and personal-use history. Cross-border material may include income records, tax slips, investment information, transfers, and evidence of foreign tax paid. This early review identifies missing records in time to request them from banks, suppliers, clients, tenants, property managers, former advisers, or online portals.
Reconcile income, deposits, and GST/HST
CRA may compare return income with invoices, 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. Important amounts require a credible source.
We prepare schedules linking sales to invoices or payment reports, rent to leases and deposits, and transfers to corresponding account movements. Loans, reimbursements, refunds, merchant fees, and other non-income amounts need supporting evidence. This helps explain why gross sales, deposits, and GST/HST do not always match line by line.
Expenses need the same 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.
Review every related account before responding
An audit can start with a personal return but reach business banking, GST/HST, payroll, corporate records, rental activity, cross-border information, and other personal reporting. A sole proprietor’s sales should agree with deposits and GST/HST. An incorporated owner may have payroll, shareholder transactions, business expenses, and personal income. Cross-border records should fit the income, transfers, and tax credits reported.
We consider these links before detailed explanations are sent. A deposit schedule 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.
Rebuild incomplete records from credible sources
Older files can be incomplete after a bank change, lost receipts, unavailable suppliers, a closed online account, or a former bookkeeper. Bank and card statements, suppliers, clients, tenants, contracts, email, property records, accounting backups, prior returns, and CRA information can support a factual reconstruction. The aim is the best accurate evidence available, not an unsupported estimate.
The method should be transparent. 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 response.
Keep communication and deadlines controlled
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 cross-border 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 Tecumseh 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, cross-border, or personal facts requiring explanation. From there, you can respond with an organized plan grounded in evidence.