CRA review and audit support in BC
Updated
Most CRA letters are a request for documents rather than an accusation, and most are resolved by sending the right thing once. The cost comes from answering the wrong question, or answering late.
Quick answer: We read the letter, work out what is actually being asked, assemble the records that answer it, and respond on your behalf inside the deadline. That covers pre-assessment and post-assessment reviews, information requests, payroll examinations, GST/HST reviews, field audits and notices of objection.
On this page
- What a CRA review or audit involves
- Why the response matters more than the letter
- If the assessment has already been issued
- The CRA letters we handle, and what each one needs
- What not to do when the letter arrives
- If you find the problem before the CRA does
- Who this is for, and who it is not
- The forms and the dates
- Who this is for in the Fraser Valley
- What sets the fee
- Other corporate tax work
- Common questions about CRA support
What a CRA review or audit involves
- Pre- and post-assessment reviews, where a claim on a filed return is being checked.
- Information requests, which name what they want and when they want it.
- Payroll examinations and PIER reports, where slips and remittances do not agree.
- GST/HST reviews, usually triggered by a refund claim.
- Field audits, including acting as the single point of contact so the questions do not land on you.
- Notices of objection, where an assessment is wrong and the deadline to dispute it is running.
Each of the common letters is decoded on its own page — the CRA letters index lists them.
For a sales tax examination specifically, see what to expect in a GST/HST audit.
Why the response matters more than the letter
A CRA reviewer tests whether a figure is supported. Sending more than asked invites questions; sending less restarts the clock. Answer exactly what was asked, in order, with supporting documents attached and referenced.
The other half is the deadline. Most letters carry one, and missing it converts a review into an assessment that then has to be objected to — which is a longer, more expensive process than the review would have been.
If the assessment has already been issued
An arbitrary (notional) assessment is the CRA filing for you. The number is deliberately high; the fix is usually to file the real return. Undoing an arbitrary assessment covers the mechanics and deadline.
The CRA letters we handle, and what each one needs
Most CRA contact is not an audit. It is a review that wants a specific set of documents by a specific date. Knowing which letter you have tells you most of what to send.
| Letter | What it is usually after | What answers it |
|---|---|---|
| GST/HST review, often holding a refund | Support for input tax credits | The purchase invoices behind the claim, showing the supplier’s registration number |
| T1 review | A deduction or credit on a personal return | The receipts behind it: RRSP, childcare, medical, moving or business expenses |
| T2 review | A figure on the corporate return | The general ledger and the invoices behind the account in question |
| PIER report | CPP or EI premiums under-deducted on payroll | The payroll records, reconciled to the T4 slips |
| T4 or T5018 mismatch | Slips that do not agree with remittances or returns | Amended slips, or a reconciliation showing why they differ |
| Demand to file | A return the CRA believes is missing | The return itself, filed by the date in the letter |
Once you approve us through the CRA’s Represent a Client service in My Business Account, we deal with the officer, respond and follow through to the notice of assessment or reassessment. If it is wrong, we prepare the notice of objection, due within 90 days.
Want a CPA’s answer on a single CRA review or audit letter before committing to anything? The 45-minute Advice Call is a flat fee of $225 + GST for one question, credited against your first invoice if you engage us within 60 days.
What not to do when the letter arrives
- Do not miss the date. If the response cannot be ready in time, ask for more time before the deadline, not after it.
- Do not send originals, or everything you have. Send copies of what the letter asks for, organized to the question, with a short covering note.
- Do not explain without documents. A review is settled by records; a well-argued letter without the invoice behind it is still a disallowed claim.
- Do not assume it will go away. An unanswered review becomes a reassessment, and the 90-day objection clock starts from that notice.
If you find the problem before the CRA does
An error or unfiled return the CRA has not raised may qualify for the Voluntary Disclosures Program, which can reduce penalties and some interest. The disclosure must come before any CRA enforcement on the issue and be complete, with tax paid. A review letter on that issue generally closes the program, so act early.
Who this is for, and who it is not
A good fit: anyone holding a CRA letter with a deadline on it, and anyone who has been assessed on a return they never filed.
Not a fit: a general audit worry with no letter. Then the useful work is making the file defensible in advance, and we say so on the first call rather than quote for work you do not need.
The forms and the dates
A review letter names the tax year, items under review and a deadline, usually 30 days; an audit is broader, with a proposal letter before any reassessment. A notice of objection (form T400A) is due within 90 days of reassessment. Representation through form AUT-01 or online authorization sends correspondence here, not to the owner.
Who this is for in the Fraser Valley
Reviews reach Fraser Valley businesses in familiar forms: a GST/HST pre-assessment review of an Abbotsford contractor’s input tax credits, a T5018 query for a Chilliwack or Langley builder, a payroll PIER report in Mission, a Surrey owner asked for vehicle logs. Most are settled by sending the right documents once, as asked, on time.
What sets the fee
Quotes follow the letter, which defines the work. A one-item, one-year document request is a small fixed fee; full audit representation, through the proposal letter and possibly a notice of objection, costs more and is quoted in stages, so you pay for the second only if the first does not settle it. Clients whose books we keep pay less, since the documents already exist in the form the CRA wants.
Other corporate tax work
The rest of what this covers, and the page each one is on.
Common questions about CRA support
Do you deal with the CRA directly?+
We got a letter and the deadline is close. Can you help?+
Will this trigger more attention?+
What does it cost?+
Starting fees
Help with a CRA letter is quoted once we have read it. Every fee is fixed in writing before any work begins.
- One-off advice call with a CPA$225 plus GSTThis page
- Monthly bookkeeping, sales tax filing includedfrom $325 a month
- Payroll, remittances, T4s and ROEsincluded in monthly bookkeeping
- Books, payroll and the year-end T2 together$500–$700 a month
- Corporate year-end and T2 returnfixed fee, quoted in writing
- Personal tax return (T1)from $125; self-employed or rental $275–$500
- Catch-up bookkeepingfrom $2,200 per year of records
- Controller or CFO supportcontroller from $1,650, CFO from $2,750 a month