CRA Audit Defence: Know the Process and Prepare for AI Audits

High-net-worth investors, business owners and transitioning family businesses can face complex CRA audits, raising important questions for the professionals who represent them. What powers does CRA have during an audit? What information must be supplied to avoid penalties up to $25,000?

At the September 23 CE Savvy Summit: Audit Defence Management, Kim Moody, FCPA, FCA, TEP, FDFS™ will tackle these issues in two sessions: The New Audit Process and The AI-Astute Advisor: Countering AI Audits with Wisdom and Judgement.

Early-bird rates are available until September 9. Check out the detailed agenda and register here!

The New Audit Process: Moody will take a high-level look through CRA audit manuals and examine taxpayer relief using a case study approach. What are the penalties for inadequate books and records, gross negligence and tax evasion? When should a new Voluntary Disclosure be made rather than accessing the Taxpayer Relief Provisions? A thorough review of the appeals process, responsibilities and new audit powers recently legislated will be discussed. How will AI hinder the process?  How can AI help the taxpayer with set up a more defensible audit journey?

CRA Audit Powers: Once an audit begins, advisors need to understand the legislative authority granted to an auditor under subsection 231.1(1). The session will examine the principles for weighing audit evidence and what documents CRA can request from third parties such as spouses, employees, financial institutions and accountants. It will also consider what taxpayers must do to comply—and what may constitute an overreach.

Objections and Compliance: Record retention, CRA’s powers to inspect, requests for information in digital form and interviews, and what accountants must provide will all be on the agenda. Moody will also address recent federal budget proposals and technical amendments, the controversial compliance orders (which require court application by the CRA,  and notices of non-compliance (which don’t require court application by the CRA when a taxpayer fails to provide the information it seeks. These notices of non-compliance carry stiff penalties: $50 per day, up to a maximum of $25,000 ).  Students will also learn specific tips and traps in preparing Notices of Objection.

The AI-Astute Advisor: The second session turns to the advent of AI audits and an important reality: AI is not wise, yet. Algorithmic bias, incorrect targeting, privacy and confidentiality concerns and failed checkpoints can create inequities when AI is used to assist audit activities. The advisor’s knowledge, experience, wisdom and judgement become increasingly important when technology gets it wrong.

Canadian Investors with Assets Abroad: Four complex scenarios will explore how advisors can respond to the expected advance of AI audits. Topics include financial assets and currencies, business and real estate assets abroad, T1135 and T1134 issues, snowbirds, running businesses from abroad, the capital gains deduction and departure tax issues.

For tax and financial advisors, understanding both CRA’s audit powers and the emerging role of AI in audit selection and administration will be increasingly important when helping clients prepare audit-proof returns and successfully object to incorrect assessments.

Don’t Miss This!  Kim Moody will present The New Audit Process and The AI-Astute Advisor: Countering AI Audits with Wisdom and Judgement at the September 23 CE Savvy Summit: Audit Defence Management.

THE BENEFITS: Tax deductible tuition includes the event presentations, an accompanying online certificate course and 20 CE Credits. Don’t miss this live virtual event to refresh your knowledge on new tax and compliance issues, high-risk audits, CRA audit processes and the emerging role of the AI-Astute Advisor. Enjoy comprehensive professional development with like-minded professionals from coast to coast!

REGISTER NOW. Ask about team member and group rates. Everything is included, plus tuition qualifies for Canada Training Credits and tuition tax credits.

The September CE Savvy Summit: Issues in Audit Defence offers a timely opportunity to prepare for greater CRA scrutiny and strengthen your ability to help clients file audit-proof returns and respond when an audit occurs. Everything is included in this professional development day, including your 5-Chapter Online Certificate Course – Issues in Audit Defence.

Don’t Forget:  Register by the September 9 early-bird deadline to save 12% on tuition—or save up to 50% when you study to be a Tax Team Leader:   take all five CE Summits and earn the Senior Tax Specialist Diploma.