Why the client reached out to KAD
The Shareholders of “Company DD” came to KAD concerned about a letter issued by CRA advising that an audit will be conducted on all of the financial records. Initially, the CRA had stated that they would be conducting a GST audit, not one that encompassed payroll and all corporate reporting. As well, already 15 days of the 30 days response time had elapsed in which to respond to CRA.
Action taken by KAD team
- The KAD team reviewed CRA’s audit letter and set up a meeting with Company DD’s director and members of the his accounting team. Further, the client provided CRA access, so that KAD had the authority to represent Company DD and could review all of the information filed and pending with CRA.
- Together with Company DD’s accounting team, the KAD team accumulated and submitted the information requested in the CRA audit letter.
- In response, by the end of the second month, CRA issued a letter outlining proposed GST, Payroll and corporate income tax adjustments and taxes outstanding. The KAD team reviewed the proposed tax adjustments and following discussion with Company DD’s director and further analysis – issued a response letter within the week. The KAD response letter agreed with certain findings and tax adjustments proposed by CRA but disputed and disagreed with others.
- Following more meeting and discussions with CRA, the CRA issued a formal reassessment of the GST, payroll and corporate tax accounts.
Successes realized by client
- The initial proposal following the audit of Company DD’s records would have resulted in extremely high additional taxes, penalties and interest. With the quick response, detailed analysis, and negotiation and clarification sought by the KAD team, the client paid only a very small amount of original taxes and penalties assessed.
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