There are a lot of different myths created and they give people some incorrect beliefs concerning the CRA’s audit and its appeal policies. If you are looking for a fast resolution to your tax disputes, then you need to know the truth about these issues.
Remember, this type of misinformation or insufficient communication can waste the resources of the CRA and slow down the efficiency of the tax system’s operation. Some of the myths simply come about as a result of outdated information or activities as well. They really do skew the accuracy and speed of the resolution of these tax issue.
Here, we’re going to show you some examples of the myths that we’re referring to. Read below…
One common myth is that your appeal to the CRA’s appeals branch will be rejected, if you don’t offer it something new that you have not provided in the initial audit stage. This in untrue, since the branch has the responsibility of reviewing its objections objectively and impartially, although it would be more productive if those issues were addressed initially.
Another myth is that the appeals officers do their own independent audits. That’s actually not one of their duties; what they do is review assessments, weigh the facts and apply the necessary laws.
Yet another myth is that the auditor may bring up the issues of the civil penalties, to discourage any disputes. Wrong – this is not one of the strategies that the CRA uses. The organization is only committed to fair and just methods that act in the best interest of the tax payers.
The next very common myth states that the auditor may suggest a large assessment or large penalties made to encourage the settling of disputes. The CRA auditors do no such thing because that would be a policy breach.
Finally, there is the myth that the CRA’s compliance branch’s technical staff usually side with their auditor colleagues and so the appeals are more likely to be successful. Actually, that’s wrong because the auditors are given the necessary resources that help them to uniformly apply the tax laws.
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