A Toronto taxation expert tells WP what advisors can do to ensure what can be a stressful time of year for clients doesn’t become worse.
When people think of the Canada Revenue Agency they generally picture themselves in a small room in some government building being questioned about this deduction or that tax credit – the dreaded tax audit.
More than 25 million Canadians will submit a tax return this year. What do they have in common?
Many will be selected for a review by the CRA, a targeted process based on risk assessment where certain factors make a review more likely. WP discussed with Aaron Schechter, a partner with Toronto-based Crowe Soberman LLP, the things advisors can do for their clients that lessens the chance of getting a review letter from Ottawa.
“Brokers should use the best reporting software possible so that they can keep track of things like cost basis, paid-up capital, historical foreign exchange, and foreign income verification,” says Schechter. “With the T1135, I’ve seen some brokers with good reporting software that will provide all the information that taxpayers need to complete the T1135 well.”
But whether clients receive a letter or not, Schechter explains there’s nothing to fear.
“Remember, a review is different than an audit,” he says Schechter.