A CRA audit needs an explanation that follows the complete record
Windsor taxpayers may receive a CRA audit request involving a contractor, business, rental property, GST/HST, payroll, personal banking, cross-border information, or a tax claim. Supporting records can be divided between contracts, invoices, payment reports, bank accounts, receipts, employer files, property documents, and accounting software. CRA may see a reported amount or a deposit without seeing the transaction and business 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 strong response is organized around the question CRA is testing. It should explain how the reported figures were calculated and point CRA to the evidence that supports them.
Tax Help Canada helps Windsor 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 proposals or reassessments before deadlines create added pressure.
Begin with CRA’s actual request
CRA may ask for statements, contracts, invoices, receipts, GST/HST returns, payroll reports, property documents, foreign records, or a written explanation. A deposit review can test income. A worker-payment request can concern payroll deductions or contractor classification. A property request may concern rent, personal use, repairs, or a capital improvement.
Business and contractor files may include agreements, sales, customer payments, vehicles, equipment, expenses, payroll, and GST/HST. Rental records 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 initial review identifies gaps early enough to request records from banks, suppliers, clients, tenants, property managers, former advisers, or online accounts.
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 is not automatically income. It may be business revenue, rent, tax collected, a transfer, loan proceeds, reimbursement, refund, or money received for another person. Significant amounts need 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 support. This helps explain why gross sales, deposits, and GST/HST may not 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.
Consider every connected account
An audit can begin 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 fit 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 credits reported.
We consider those 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 possible tax, interest, penalties, payment, and collections exposure.
Reconstruct 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 reconstruction should show its method. 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, cross-border records, 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 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 Windsor 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.