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CRA Audit Support · Small Business · Licensed CPA

CRA Audit Support for Small Businesses

If the CRA has sent you a review letter, an audit notice, a proposal letter or a reassessment, we take it over. We prepare your records, deal with the auditor directly, respond to the proposal before it becomes a reassessment, and object or appeal where the numbers are wrong. Licensed Ontario CPA. Flat fee. All fees include HST.

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We Deal With the CRA for You
Authorized Representative
We register with the CRA and deal with the auditor directly
Proposal Stage Response
We answer before a reassessment is ever issued
Objections & Appeals
Filed within the 90-day window to the Appeals Division

A CRA Audit Is a Records Exercise. We Make Sure You Win It.

An audit letter from the CRA is stressful, but most audits are not about fraud; they are about whether your reported numbers are supported by documentation. The burden of proof sits with you, so the outcome turns on how well your records are organised and how the audit is handled from the first response.

We step in as your authorized representative, deal with the auditor directly, prepare and present your records, and answer precisely so the audit stays focused rather than expanding. Where the CRA proposes adjustments that are wrong, we push back at the proposal stage and, if needed, object and appeal. See our CRA audit resolution services and small business accountant hub.

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Gondaliya CPA team

Our CRA Audit Support Services

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Audit Response

We review exactly what the CRA asked for and take over the response as your authorized representative.

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Records Preparation

We organise and present the records that support your income and every deduction under review.

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CRA Representation

We deal with the auditor directly and precisely, keeping the audit focused on the year and issues at hand.

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Proposal Letter Response

We answer the auditor's proposal before it becomes a reassessment, reducing or removing adjustments.

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Objections & Appeals

Where the CRA is wrong, we file the Notice of Objection and take the file to Appeals and Tax Court.

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Penalty & Interest Relief

We dispute wrong penalties and pursue taxpayer relief where circumstances were beyond your control.

How We Defend a Small Business Audit

Every stage of an audit handled correctly, from the first letter to the final result. All fees include HST.

1

Take Over the Audit

The first response sets the tone of the whole audit. We make sure it is the right one.

  • Register as your authorized representative so the CRA deals with us, not you.
  • Review the audit letter to pin down the exact years, taxes and issues in scope.
  • Confirm the deadlines and buy time where a reasonable extension is warranted.
  • Stop the audit expanding by answering only what was asked, accurately.
  • Explain your options and the likely path in plain language before we act.
2

Prepare & Present the Records

The burden of proof is on you, so the records are the case.

  • Assemble sales records, invoices and bank statements to support reported income.
  • Match every deduction under review to a receipt, invoice or contract.
  • Reconcile deposits to reported revenue so nothing looks unexplained.
  • Rebuild vehicle, home-office and other claims on a defensible basis.
  • Present the records in an organised package the auditor can follow.
3

Deal With the Auditor

Precise, professional communication is what keeps an audit contained.

  • Handle all correspondence and calls with the auditor on your behalf.
  • Answer questions accurately without volunteering scope the CRA did not ask for.
  • Assert your rights under the Taxpayer Bill of Rights where needed.
  • Address worker classification, GST/HST and payroll issues as they arise.
  • Keep you informed at each step without exposing you to the auditor directly.
4

Respond to the Proposal Letter

This is the stage where a good response changes the outcome.

  • Review the auditor's proposed adjustments and the reasoning behind them.
  • Rebut adjustments that are wrong with documentation and the correct law.
  • Provide any missing support before the adjustment is locked in.
  • Reduce or remove proposed reassessments before they become formal.
  • Document everything so the file is ready for objection if it is still needed.
5

Object & Appeal

If the reassessment is wrong, the fight is not over.

  • File the Notice of Objection within 90 days to reach the independent Appeals Division.
  • Make the legal and factual case to Appeals, separate from the audit team.
  • Advise on paying or deferring the disputed amount while interest is running.
  • Take the file to the Tax Court of Canada where the numbers justify it.
  • Pursue relief from penalties and interest caused by circumstances beyond your control.
6

Fix the Cause & Lower Future Risk

Resolving this audit is only half the job.

  • Correct the bookkeeping, classification or reporting issue that drew the audit.
  • Reconcile your books so income matches third-party slips going forward.
  • Set up clean records and a yearly review to lower your audit risk profile.
  • Bring any other open or unfiled years current where needed.
  • Keep you audit-ready so the next CRA letter is a routine matter, not a crisis.

Free CRA Audit Support Consultation

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Free CRA Audit Support Consultation

How Far Back the CRA Can Reassess

The reassessment period decides which years are open and how long you must keep records. Here is how it works for a small business.

SituationReassessment Period
CCPC or individual, normal case3 years from the Notice of Assessment
Other (non-CCPC) corporations4 years from the Notice of Assessment
Foreign property (T1135) or loss carrybacks6 years
Misrepresentation, neglect, carelessness or fraudNo time limit
Record retention requirement6 years from the end of the tax year

"Statute-barred" is not automatic protection. A year past the normal period is generally closed, but the CRA can reopen it where it alleges misrepresentation from neglect, carelessness or wilful default, and that allegation is made more often than owners expect. How the audit is handled affects whether that door stays shut.

What Triggers a Small Business Audit

TriggerWhat the CRA Sees
Mismatched incomeReported income that does not match T4s, T5s and banking data
High deductionsExpense claims that look large relative to your revenue
Large year-over-year swingsIncome or expenses that jump sharply from prior years
Cash-heavy operationsDeposits that do not reconcile to reported sales
Lifestyle mismatchPersonal spending that outpaces reported income
Repeated errors or lossesConsistent losses or the same mistakes year after year
Digital & crypto incomeOnline, gig and cryptocurrency income not fully reported

Audits are rarely random. The CRA runs your return through data-matching and industry benchmarking, so most audits start from a discrepancy the system flagged. Clean books that reconcile to your slips are the best way to stay off that list. See our accounting and bookkeeping.

Types of CRA Audit We Handle

Audit TypeWhat It Examines
Income tax (T2 or T1)Revenue, deductions, capital cost allowance and overall reporting
GST/HSTTax charged and collected, input tax credits, and remittances
PayrollSource deductions, worker classification and taxable benefits
Net worthIndirect estimate of income from net worth and spending growth
Review letterA narrower request to support a specific claim or slip

What Our Audit Support Includes

  • Registering as your authorized representative and taking over CRA communication
  • Reviewing the audit scope, years and deadlines and explaining your options
  • Preparing and presenting the records that support your income and deductions
  • Dealing with the auditor directly and keeping the audit contained
  • Responding to the proposal letter to reduce or remove adjustments
  • Filing the Notice of Objection and representing you at Appeals
  • Advising on paying or deferring the disputed amount while interest runs
  • Pursuing relief from penalties and interest where warranted
  • Fixing the underlying issue and lowering your future audit risk

Know Your Exact Fee Before We Start

Flat fee, fixed in advance. All fees include HST. No hourly billing.

Calculate My Fee

Case Studies

Proposed Reassessment Cut Down

A small business received a proposal letter disallowing a large block of expenses for lack of support. We reassembled the invoices and bank records, matched each expense to its document, and responded before the reassessment issued. Most of the proposed adjustment was withdrawn. The figures here are illustrative of the work we do, not a specific client file.

Most adjustments withdrawn at proposal stage

Net Worth Assessment Defeated

An owner faced a net worth assessment that assumed unreported income from lifestyle. We rebuilt the actual sources of funds, including non-taxable transfers the CRA had treated as income, and showed the real picture. The assessed amount was reduced to a fraction. The figures here are illustrative of the work we do, not a specific client file.

Assessment reduced to a fraction

Payroll Classification Held

A business was audited on whether its contractors were really employees. We documented the control and independence factors, presented the contracts and evidence, and the contractor treatment held on the facts. The figures here are illustrative of the work we do, not a specific client file.

Contractor classification upheld

Objection Won at Appeals

A reassessment stood on an auditor's error the audit team would not reverse. We filed a Notice of Objection within the 90 days and made the case to the independent Appeals Division, which vacated the adjustment. The figures here are illustrative of the work we do, not a specific client file.

Reassessment vacated at Appeals

Why Choose Gondaliya CPA for CRA Audit Support?

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Licensed CPA Ontario

A certified CPA team represents you directly with the CRA.

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We Deal With the CRA

You never face the auditor alone; we handle it all as your representative.

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Flat Fee, Upfront

All fees including HST, no hourly billing, no surprises.

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Fully Remote

Your audit handled through our secure portal, wherever you are.

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Transparent Flat-Fee CRA Audit Support Pricing

ServiceFeeFrequencyDetails
Initial Audit Review & OptionsFREEOne-timeWe review the CRA letter, confirm the years and deadlines, and explain your options.
Review Letter ResponseQuoted upfrontPer matterWe respond to a narrower CRA review of a specific claim or slip on your behalf.
Full Audit RepresentationQuoted upfrontPer matterWe take over the audit end to end, prepare records and deal with the auditor.
Proposal Letter ResponseQuoted upfrontPer matterWe rebut proposed adjustments with documentation before a reassessment issues.
Notice of Objection & AppealsQuoted upfrontPer matterWe file the objection and represent you at the independent Appeals Division.

All fees include HST, so the number quoted is the number you pay. Payment is by Interac e-Transfer to info@gondaliyacpa.ca with auto-deposit enabled and the security question set to Not Applicable. Please use our pricing calculator for an exact figure.

Know Your Exact Fee Before We Start

Flat fee, fixed in advance. All fees include HST. No hourly billing.

Calculate My Fee

CRA Audit Support: Cities We Serve

Licensed CPA audit support for small businesses across Ontario, delivered virtually.

TorontoMississaugaBramptonScarboroughEtobicokeNorth YorkMarkhamVaughanOttawaAll of Ontario

Frequently Asked Questions

What is a CRA audit?
A CRA audit is a detailed examination of your business's tax returns, financial records and supporting documents to confirm that what you reported is accurate and complete. Most audits are not about catching fraud; they are about verifying documentation. With clean records and proper representation, an audit is usually a matter of proving your numbers rather than disputing adjustments.
Why was my small business selected for a CRA audit?
Audits are rarely random. The CRA uses data matching and industry benchmarking to flag returns, so common triggers are income that does not match third-party slips, large year-over-year swings, deductions that look high for your income, lifestyle that does not fit reported income, repeat errors, and industry targeting. Some files are still selected at random.
What are the most common CRA audit triggers?
The highest-risk trigger is unreported or mismatched income against third-party data like T4s, T5s and banking records. Others include unusually high expense claims relative to revenue, large changes from prior years, cash-heavy operations, consistent business losses, home-office and vehicle claims, and digital or cryptocurrency income. We review your return against these before they become a problem.
How far back can the CRA audit my business?
For a Canadian-controlled private corporation or an individual, the normal reassessment period is three years from the date of the Notice of Assessment. For other corporations it is four years. It extends to six years for foreign-property and loss-carryback matters, and there is no time limit at all where the CRA alleges misrepresentation, neglect, carelessness or fraud.
What is the normal reassessment period?
It is the window in which the CRA can reassess a return as of right. Under the Income Tax Act it is three years from the original Notice of Assessment for a CCPC or individual, and four years for other corporations. Once that period passes, a year is generally statute-barred and cannot be reopened unless misrepresentation or fraud is involved.
Can the CRA go back more than six years?
Yes, in specific cases. Where the CRA alleges misrepresentation attributable to neglect, carelessness or wilful default, or outright fraud, there is no time limit on reassessment. This is a powerful tool and it is used more often than owners expect, which is why how the audit is handled from the start matters so much.
How long do I have to keep my business records?
At least six years from the end of the tax year they relate to. For capital property, keep the records for six years after you dispose of the property. The CRA accepts organized digital copies. Good record retention is your single best defence in an audit, because the burden of proof is on you, not the CRA.
What records will the CRA ask for?
Typically your sales records and invoices, expense receipts and vendor invoices for every deduction, complete bank statements for business and any personal accounts used for business, payroll records, contracts, and your general ledger. The auditor tests whether your reported numbers are supported. An expense with no document behind it is the first thing disallowed.
What happens during a CRA audit?
The CRA requests records, examines them, and may ask questions or interview you. The auditor then issues a proposal letter setting out any adjustments they intend to make, and you have a chance to respond before anything is finalised. Only after that does a formal Notice of Reassessment issue. How you respond to the proposal letter often decides the outcome.
What is a proposal letter?
It is the letter the auditor sends near the end of the audit setting out the adjustments they propose to make and why, before issuing a formal reassessment. It is a critical opportunity, because a well-supported response at this stage can reduce or eliminate adjustments without ever needing a formal objection. We prepare that response for you.
What if I disagree with the audit result?
You can file a Notice of Objection within 90 days of the reassessment. That triggers an independent review by the CRA's Appeals Division, which is separate from the audit team. If Appeals still rules against you, the next step is the Tax Court of Canada, where taxpayers succeed more often than many expect. We handle the objection and the appeal.
What is a Notice of Objection?
It is the formal document that disputes a reassessment and sends the file to the CRA's independent Appeals Division for a second look. It must be filed within 90 days of the reassessment for individuals and CCPCs. Missing that deadline is one of the most damaging mistakes in an audit, because it can cost you the right to dispute the result.
Do I have to pay the reassessed amount while I object?
Generally the disputed amount, or at least the undisputed portion, should be paid, because interest continues to accrue while the objection is pending even though the tax is disputed. You can ask the CRA to defer collection action during the objection, but interest is not waived. We advise on managing this so interest does not compound against you.
Who has the burden of proof in a CRA audit?
You do. Under the Income Tax Act the burden of proof rests on the taxpayer, not the CRA. That means it is up to you to demonstrate that your income was correctly reported and your deductions were valid, with documentation. This is why records and representation matter so much, and why an unsupported figure usually loses.
Should I talk to the CRA auditor myself?
You can, but it is rarely wise to do it alone. Casual answers to an auditor can widen the scope of an audit or create issues that were not there. As your authorized representative, we manage the communication through your business account, answer precisely, and keep the audit focused on the year and issues at hand rather than letting it expand.
What is the Taxpayer Bill of Rights?
It is a set of rights that govern how the CRA must treat you, including the right to be treated professionally and fairly, the right to complete and accurate information about your obligations, the right to privacy and confidentiality, and the right to object and appeal to an independent body. If an auditor acts improperly, the Taxpayers' Ombudsperson can be involved.
Can a CRA audit expand to other years?
Yes. If the auditor finds significant or recurring errors in the year under review, the CRA can expand the audit to prior years within the reassessment period. This is one reason an audit should be handled carefully from the outset, since a loose answer or a single unsupported item can open up additional years of exposure.
What is a GST/HST audit?
It is a review focused on your GST/HST returns, checking that you charged and collected the correct tax, claimed only valid input tax credits, and remitted properly. GST/HST audits are common for small businesses and are often triggered by refund claims or input tax credits that look high. We handle GST/HST audits alongside income tax audits.
What is a payroll audit?
It is a CRA review of your payroll, testing whether source deductions of income tax, CPP and EI were withheld and remitted correctly, whether workers were properly classified as employees or contractors, and whether taxable benefits were reported. Worker misclassification is a frequent finding. We prepare and defend payroll audits as part of our audit support.
What is a net worth audit?
It is an indirect method the CRA uses when it believes income is understated, estimating your income by measuring the growth in your net worth and personal spending against what you reported. These assessments are often inflated and rest on assumptions that can be challenged with proper records. We defend net worth assessments by rebuilding the real numbers.
How much does a CRA audit cost my business?
Beyond any reassessed tax, the cost is in time, stress, interest and, where adjustments are wrong, tax you did not actually owe. Professional representation usually costs a fraction of the exposure and often reduces the reassessment well below where it started. We quote a flat fee upfront so you know the cost before we begin. All fees include HST.
Can you help if I already received an audit letter?
Yes. We review exactly what the CRA has asked for, organise and prepare your records, respond to the auditor on your behalf, and address the proposal letter before it becomes a reassessment. The earlier we are involved, the more we can shape the outcome, so it is best to call us as soon as the letter arrives rather than after.
What if the CRA already reassessed me?
We can still act. If you are within 90 days of the reassessment we file a Notice of Objection and take the file to the independent Appeals Division. If the deadline is close or passed, there may still be options, including a request for an extension in limited circumstances. The sooner you contact us after a reassessment, the more we can do.
Can you reduce the penalties and interest?
Often, yes. Where adjustments are wrong we dispute them, which removes the associated penalties and interest. Where a genuine error occurred, we can pursue taxpayer relief for penalties and interest caused by circumstances beyond your control. We cannot promise a specific outcome, but reducing penalties and interest is a core part of what audit support achieves.
What triggers a CRA audit for cash businesses?
Cash-intensive businesses like restaurants, salons and trades draw extra scrutiny because cash is harder to trace. Deposits that do not reconcile to reported sales, margins that fall below industry benchmarks, and a lifestyle that outpaces reported income are common triggers. Clean, reconciled records are the defence, and we build them so a cash business can withstand review.
Will an audit affect my future returns?
It can. Once the CRA has audited you and found issues, your file carries a higher risk profile, and recurring problems can prompt further reviews. Resolving the audit cleanly and fixing the underlying bookkeeping or classification issue is what lowers that risk going forward, which is why we address the cause, not just the current year.
Do you handle audits across Ontario?
Yes. We are a licensed Ontario CPA firm and we support small businesses through CRA audits across Ontario and Canada, entirely remotely. Everything is handled through our secure portal and directly with the CRA on your behalf, so your location is never a constraint and you are represented wherever your business operates.
How do I reduce my risk of being audited?
File accurately and on time, keep clean reconciled books, claim reasonable deductions with documentation behind them, report all income so it matches third-party slips, and avoid unexplained year-over-year swings. Proactive bookkeeping and a yearly review are the most effective protection. See our accounting and bookkeeping services.
How much does your CRA audit support cost?
We quote a flat fee upfront based on the type and scope of the audit, with no hourly billing, so you know the cost before we start, and all fees include HST. Please use our pricing calculator or book a consultation for an exact figure.
How do I get started?
Please book a free consultation and tell us what you have received from the CRA, whether it is a review letter, an audit notice, a proposal letter or a reassessment, and the years involved. We review your situation, explain your options and deadlines, quote a flat fee, and take over dealing with the CRA. Book Free Consultation →

Meet Your CRA Audit Support Team

Sharad Gondaliya, CPA

Sharad Gondaliya, CPA

Founder & Managing Director
Gondaliya CPA Professional Corporation

Sharad represents small businesses through CRA audits, objections and appeals across Ontario and Canada.

Vandana Goel, CPA

Vandana Goel, CPA

Senior Accountant
Gondaliya CPA Professional Corporation

Vandana prepares the records, reconciliations and working papers that carry a small business through an audit.

What Our Clients Say

1300+ five-star reviews from business owners across Ontario and Canada.

Related Services We Provide

CRA Audit Resolution Services

  • Reassessment disputes and objections
  • Appeals Division representation
  • Penalty and interest relief requests

Small Business Accountant

Accounting & Bookkeeping

  • Clean, reconciled books that lower audit risk
  • Income matched to third-party slips
  • Audit-ready record keeping

Catch-Up Corporate Tax Filing

  • Unfiled and late corporate returns
  • Bringing prior years current
  • Relief where available

Got a CRA Letter? Do Not Face the Audit Alone.

We take over the audit, deal with the CRA directly, and fight adjustments that are wrong. Flat fee. All fees include HST.

Licensed CPA Ontario
1300+ Five-Star Reviews
We Deal With the CRA
Flat-Fee, Including HST
Book Free ConsultationAudit Resolution Services
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