Going through an audit can be as painful as a root canal or passing a kidney stone. Aside from the potential financial disaster arising from penalties and fines, the process can disrupt your entire office for days or weeks. When an audit is demanded, any thoughts of running the business normally fly right out of your head.
The government keeps an eye on certain potential problem areas and when they appear on your tax returns they can trigger an audit. Some examples of things that can be flagged for an audit are:
Expenses that are out of line with income.
Reported income variances. For example, the income on your tax report should match your GST/PST reports.
Not filing all your T4 slips for two years in a row. Once can be a mistake, twice starts to look like a plan to hide income. You cannot hide income that is reported on a T4, the government also has a copy.
ATS can help you to navigate the minefields of an audit. They will prepare your financial records to expedite the process to make it as painless as possible for you and your company.