Overview
A letter from the CRA is a request for an answer, not a finished result. We read it with you, gather what supports the amounts, and help you respond in order. The CRA decides whether to reassess, and whether any penalty applies.
This is not an audit of financial statements, and it is not legal representation. If a point needs a lawyer, we will say so. A compilation engagement, which we prepare separately, does not provide assurance and is not a substitute for this work.
CRA correspondence and requests
We read the letter for the period, the account, and the records the CRA wants, and we note the date they have set.
- The question the CRA is actually asking
- The period and the program account it covers
- The deadline, and what has to be sent by then
Accounting records and supporting documents
We help you pull the invoices, payroll records, returns and working papers that answer the request, and set aside what the letter does not ask for.
- Source documents matched to the request
- Returns and working papers for the period under review
- A file that is limited to what the CRA asked to see
Amounts under review
Where the CRA's figures and yours differ, we reconcile them to the books and to the return that was filed, and we show the difference rather than argue past it.
- A reconciliation of the CRA's figures to the books
- Differences explained against the return as filed
Corporate income tax, GST/HST and payroll
The accounts we take on in an audit or review are corporate income tax, GST/HST, and payroll. If the letter is about another account, tell us. We will say whether we can help with it.
- Corporate income tax audits, reviews and inquiries
- GST/HST audits and reviews
- Payroll account questions, including source deductions
Speaking with the CRA, once you authorise us
The CRA will not discuss your account with us until you authorise it. You can do that in your CRA account, or on paper with Form AUT-01 for contact by phone, mail, fax or in person. With that authority we can speak with the CRA, send what they have asked for, and join meetings you want us to attend. You remain responsible for the account.
- Authorization arranged before we contact the CRA
- Replies and documents sent on your behalf
- Meetings with the CRA, when you ask us to attend
Proposed adjustments and next steps
If the CRA proposes a change, we explain what it does to the tax and what the usual next steps are, including a response before an assessment is finalised. We do not decide the outcome, and we do not give legal advice.
- A plain explanation of a proposed adjustment
- The steps available before an assessment is finalised
- A recommendation to involve a lawyer when the matter needs one
How we handle a CRA letter
The aim is a clear response, sent on time, with the documents that support it.
Read the letter
We identify the account, the period, the question and the date. Nothing goes back to the CRA until that is clear.
Assemble the records
You and we gather the documents the letter asks for, and only those.
Reconcile and reply
Amounts are tied back to the books and the return. Once you have authorised us, we send the reply or discuss it with the CRA.
Explain any proposed change
If the CRA proposes an adjustment, we explain it and the steps that follow. The decision stays with the CRA.