Audited by CRA for 2006 and 2007

[GarthChapman]

I can`t believe it. Our real estate holding company was audited for 2006 and 2007, and they went through everything, and I mean everything. taking over 6 months to complete. My wife, Debbie, does our book-keeping (in Quickbooks), and she must have printed thousands of pages of information for CRA. We have done some pretty complex deals and many different types of deals during that period, and we are aggressive in our approach to expensing costs vs capitalizing them (this helps to minimize profits). We have also sold a few properties, resulting in capital gains and some serious benefits from the Capital Dividend account.

We are diligent about keeping good records, something Debbie deserves all the credit for, so I was confident in the accuracy of our records, but I was expecting CRA to attack a couple of areas where we interpret the tax Act aggressively. So I was blown away today by the letter we received in the mail today advising us that the audit is complete and "The audit resulted to no changes to the previous assessments"!!

I think I may frame the letter!

So keep good records, employ good systems and follow REIN`s recommendations - and you too might enjoy good results if audited.

 

[lanedry77]

Wow - Congrats Garth!

Is Debbie for hire? I have a bookkeeping mess brewing.

David.

 

[thejules]

Hey Garth,
Way to hang in there during that process. I would probably block a road or something. Just kidding. You should go into some detail & speak about this at a REIN Meeting. I think you`ll agree that this experience would benefit everyone...

 

[RedlineBrett]

Holy cow!

Nice work Garth - it`s an excellent feeling when your systems save you from something that could have been much worse.


QUOTE (GarthChapman @ Nov 11 2008, 08:52 PM) I can`t believe it. Our real estate holding company was audited for 2006 and 2007, and they went through everything, and I mean everything. taking over 6 months to complete. My wife, Debbie, does our book-keeping (in Quickbooks), and she must have printed thousands of pages of information for CRA. We have done some pretty complex deals and many different types of deals during that period, and we are aggressive in our approach to expensing costs vs capitalizing them (this helps to minimize profits). We have also sold a few properties, resulting in capital gains and some serious benefits from the Capital Dividend account.

We are diligent about keeping good records, something Debbie deserves all the credit for, so I was confident in the accuracy of our records, but I was expecting CRA to attack a couple of areas where we interpret the tax Act aggressively. So I was blown away today by the letter we received in the mail today advising us that the audit is complete and "The audit resulted to no changes to the previous assessments"!!

I think I may frame the letter!

So keep good records, employ good systems and follow REIN`s recommendations - and you too might enjoy good results if audited.

 

[ChrisDavies]

That`s impressive! I thought my families company was doing well when we had 3 GST audits and never were out by more than a few dollars. Your wife may have a new business on her hands, because I might be looking for a book keeper too.

We used to have a storage room on the second floor of our old office. There was no A/C, it was very dusty and packed with filing boxes. It was our `special` room for the CRA auditors. They work faster when it`s uncomfortable and they have to pull the files themselves.

 

[RanjitPlaha]

Wow, Garth.
You and you wife are to be applauded.
My CRA audit turned up a few items that had no paper trail. The auditor posts all of those as revenue. You don`t want to be in that position. I have been trying to complete that paper trail so that the CRA reverses that decision. It is a time consuming process full of behavior that I am usually not acustommed to.
Hire a good person and do it right the first time.
Ranjit

 

[GSI]

QUOTE (GarthChapman @ Nov 11 2008, 07:52 PM) I can`t believe it. Our real estate holding company was audited for 2006 and 2007, and they went through everything, and I mean everything. taking over 6 months to complete. My wife, Debbie, does our book-keeping (in Quickbooks), and she must have printed thousands of pages of information for CRA. We have done some pretty complex deals and many different types of deals during that period, and we are aggressive in our approach to expensing costs vs capitalizing them (this helps to minimize profits). We have also sold a few properties, resulting in capital gains and some serious benefits from the Capital Dividend account.

We are diligent about keeping good records, something Debbie deserves all the credit for, so I was confident in the accuracy of our records, but I was expecting CRA to attack a couple of areas where we interpret the tax Act aggressively. So I was blown away today by the letter we received in the mail today advising us that the audit is complete and "The audit resulted to no changes to the previous assessments"!!

I think I may frame the letter!

So keep good records, employ good systems and follow REIN`s recommendations - and you too might enjoy good results if audited.

Hey Garth and Debbie,

Good to hear that you came out in great shape! It must be very satisfying to see how everything has fallen in place the last few years (REMA, selling parts of the portfolio, your Mom`s house, your place in the US and AB) All great achievements! I think that you must feel fantastic. Good for you!

Todd-