Canada Revenue Agency (CRA) is the revenue service of the Government of Canada and is perceived as an ultimate authority. That doesn’t mean that they are always right though.
If you end up with an unexpected bill due to denied expenses, know that it doesn’t have to be the end of the world and that there may be a way out of it. Watch the video to find out more.
And if you prefer reading, check out the transcription below the video.
client success story
Good afternoon, everyone. It’s Irfanali with RMI once again. Hopefully, everyone’s had
a fantastic couple of weeks.
I know I’ve been away for a little bit so I missed out on a couple of videos here and today, as we’re sitting in July, Calgary Stampede is going on right now.
So, I thought it’d be a great time to tell everybody a little story about some of our clients.
Even CRA makes mistakes
The main story I want to tell is about how CRA is not always right.
We’ve seen on numerous occasions whereby clients are coming back getting reassessed for different items. Clients or CRA might come back and challenge some expenses and a lot of times people just take it at face value because it’s CRA.
Let me tell you that’s not always the case. In one such incident, we had a client who basically was claiming employment expenses.
They’re employed. They had the right to claim some expenses. CRA came back and denied all their expenses. Sent them a bill 3 years later. Pretty big bill saying here you owe this money.
And so the client approached us.
don't be afraid to fight back
We ended up being able to help him out. Our accountants have submitted back, send some explanations, and had the whole file further audited.
Then we took it even a step further into appeals to challenge some of the stuff that the auditor was denying.
At the end of the day, we got about 95% of the tax bill written off by CRA and having them actually approve most of the expenses.
So, don’t always take what CRA says at face value. We want to make sure we do our due diligence and actually fight back if we can.
work with expert accountants in calgary
If you have any questions, feel free to reach out to us at RMI Professional Corp.
Our team of experienced accountants and bookkeepers is here to help with your tax and accounting needs.
Thank you very much. Take care!