- CRA uses alternative methods for GST/HST audits when standard records are missing or inadequate.
- These methods include estimating revenue, reconstructing receipts, and using indirect checks like net worth audits or industry comparisons.
- The goal is to detect GST/HST non-compliance and confirm the correct tax was collected and remitted.
- CRA may assess additional taxes and penalties if discrepancies are found.
Source: goodservicetax.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.
