Navigating CRA Audits: How Canadian Companies Can Reduce Proposed GST/HST Assessments

• Canadian companies often underestimate the impact of a GST/HST audit until they receive a proposed assessment.
• Decisions made within 30 days of receiving a proposed assessment are crucial for resolving the issue efficiently.
• CRA audits can lead to inflated assessments that may not reflect actual tax liabilities.
• The proposed assessment stage is critical as it offers a limited window to influence the audit outcome.
• After 30 days, the case may move to collections or appeals, making the process longer and more costly.
• There is often a disconnect between how businesses operate and how CRA interprets transactions.
• Resolving disputes requires a deep understanding of Canadian sales tax law and comprehensive documentation.
• Engaging tax professionals early can prevent issues from escalating.
• A success story involved reducing a proposed assessment from over $125 million to $123,000 by addressing misunderstandings and providing necessary documentation.

Source: dmainc.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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