When one receives a mail from the Canada Revenue Agency, it is undeniable that the person’s heart starts beating faster than usual. They may not be guilty of anything but just the mere sight of the recycled paper envelope brings a lot of uncertainty to tax payers. This is the reason why many accountants services comes with CRA audit protection in order to reassure their clients that they will be protected in cases of mishaps.
The mail might be a notice of audit, a re-assessment, a deduction that was rejected from the previous tax return or it could be good news waiting to be revealed such as getting a return that shows you owe the agency zero amount of tax money.
It is the instinct of a person to fear the taxman because this has always been the basis of the relationship between the two. There are those who might have committed something wrong or done a very small mistake in their last tax return that continues to haunt them as they don’t know when it might be mailed to them.
It is a fact though, that everyone should be cautious when it comes to taxes including those who are belonging in the T4 salary range and those who are paying and filing on time. The scrutiny of the CRA is not something anyone can avoid but there are some misconceptions that some have with regards to the agency. The fact is that many consider the CRA as their friend.
One might ask why?
This is because many believe that paying taxes is our social responsibility and those who are paying in tax and not doing anything wrong need not worry. The taxman is after those who are not filing, not paying and cheaters when it comes to their responsibility.
It is inevitable though to commit mistakes while filing. These unintentional mistakes are the reason why some individuals and businesses hire accountants because their services come with CRA audit protection that protects them in cases where these mistakes are committed. The fact still remains that the CRA is a friend to those who are honest and enemy to those who are dishonest.