New Issues in Audit Defence: It’s About Retirement Readiness

Tax audit risk can be a real wealth eroder of retirement readiness, especially for business owners, retirees with new multiple sources of income and newcomers to Canada. Most of these clients are unprepared for how quickly the costs of unpaid balances due, penalties and compounding interest payments can grow. Evelyn Jacks, President of Knowledge Bureau, opens the September 23 CE Savvy Summit a renewed mission for advisors. Here are some of the compelling issues:

The Canada Revenue Agency is transforming how it conducts audits. Through the increasing use of AI, CRA can cross-reference taxpayer reporting with expansive data to identify filing patterns and discrepancies, target “high-risk returns” and compare industry data to more accurately identify unreported income. This is particularly relevant when digital transactions, including e-transfers and online banking, and various currencies are used.

At the same time, CRA is putting greater focus on “misclassified” income, including whether an individual should be considered self-employed or employed. Together, these developments point to the potential for more tax audits, more frequently and at greater expense to taxpayers—and reinforce the importance of human oversight, judgement and wisdom in ensuring tax fairness.

Technology can identify patterns and discrepancies, but human oversight, judgement and wisdom remain essential to ensuring tax fairness and maintaining trust in the tax system. That’s where the highly engaged tax and financial advisor comes in.

New Reporting and Compliance Issues That changing audit environment also brings new responsibilities for the professionals who serve taxpayers. The session will examine new developments in federal and provincial tax law and reporting requirements affecting financial advisors and accountants, including the new requirement for financial advisors to register for and report GST on trailing commissions and changes to the Voluntary Disclosures Program.

Filing Audit-Proof Returns. Did you know that businesses are more likely to close after a tax audit? That was the eyebrow raising discovery in an American study. Audits can also have a negative effect on future revenues, depending on size and scope – draining cash flow and time that could be spent in growing the business.

The implications extend beyond tax compliance. An audit, reassessment or unexpected tax liability can disrupt a client’s financial plans and ultimately affect their financial peace of mind and retirement readiness. That makes accurate reporting and stronger audit defence an important part of protecting the client’s longer-term financial position.

Accurate tax preparation and documentation becomes particularly important before a review or audit begins. Jacks will look at critical steps in filing audit-proof returns, as well as the issues that can arise through both CRA-initiated and client-initiated reviews.

What is clear is that the tax preparation industry is changing dramatically. As CRA’s reliance on cloud-based AI continues to grow, expect to spend more time helping clients with assessment problems stemming from CRA reviews. Privacy and security will also become more important considerations, in particular if retiring clients are unaware of scams and fraud that can drain their savings and bring even more stress to an audit scenario. True to life cases studies include scenarios where RRSP balances were cleaned out leaving tax bills that are now too large to pay. What to do with CRA’s new focus on tax collections? Find out in this important session.  

For advisors and accountants, this changing environment is also reshaping practice management. Understanding new compliance requirements, anticipating areas of CRA scrutiny and helping clients file audit-proof returns will be increasingly important as the professional landscape continues to evolve.

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.

Receive the dynamic presentations PLUS: Your 5 Chapter Online Certificate Course – Issues in Audit Defence

Consolidate your knowledge and retention of the critical information covered throughout this important Summit and prepare to provide greater value when clients face increased CRA scrutiny.

Register by the September 9 early-bird deadline to save 12% on tuition!

Or, save up to 50% on tuition when you take all 5 CE Summits and earn the Senior Tax Specialist Diploma.