Last updated: September 13 2023
CRA is sharpening its audit focus on Canadian real estate owner and it’s worth billions. Up to 5 different tax returns can be reviewed: the T1, T2, T3, the GST/HST return, and the new Underused Housing Tax. Recent real estate audit activities in two provinces, BC and Ontario, have been particularly fruitful with over $1 billion in tax reassessments that have resulted in each province along with over 3,000 gross negligence penalties amounting to close to $300 million more in the period April 2015 to March 2022. We’ll discuss the 7 big audit errors every professional advisor needs to know about at the CE Summit on September 20 and invite you to register by September 15 for an early bird offer. Here’s a brief synopsis:
Real estate owners will want to be sure they can pass the CRA audit tests, even if they are not reporting rental income. Consider the following tax traps:
Make a Difference. Brush up on these key audit areas to ensure income and capital is properly reported on the tax return and acquisition/disposition transactions and their source of funding can be tracked. For a deeper learning experience, please enrol in the virtual CE Summit on Sept 20.