Being Audited by the CRA
 

So, I got a call from CRA today informing me that I am being audited for 2006 and 2007. I was a university student at that time, running a small business, in which I claimed.
My only fears is that at that time I used some ebay and paypal accounts, in which I don't even remember login information (or login ID for that matter).

Anyone have any advice?

Thanks

I'm going to allow this topic to stand, but the OP needs to remember that "you get what you pay for" with free advice from a travel site on the internet.

He/she should ensure that any advice/strategies outlined here are backed up by a "real world" lawyer or tax expert.

Sean
Moderator - Canada Forum

I work for a large accounting firm, so will be seeking professional advice most definitely. Just wanted to see if anyone had any personal experiences here.

I have been audited twice over the last 20 years, and expect it to happen again.

Both times they were looking for specific expense claims and areas, and only wanted documents pertaining to those items. I explained that I am an open book and not about to spend my time sorting stuff for them. I gave everything. I had to pay minimal amounts both times, no penalties or interest.

The CRA people were nothing but professional and courteous both times.

The difference here is that taupo probably had the receipts and gave them the shoebox.

kendalh seems to be lacking any sort of documentation, which goes against the Income Tax Act of requiring you keep documentation for 7 years. Forget 7 years, looks like docs weren't kept for 1-2 years!!

Not sure what advice you're looking for but, without documentation, expect to pay back whatever tax credits you've claimed.

That is not at all what I said. I have all my docs.

You work for a large accounting firm? Why bother asking for tax advice on a frequent flyer IBB?

Does your firm offer expert advice on FF plans?

Again, as I said no more than 3 posts above, not looking for tax advice, just looking for experience stories.