CRA Shifts Audit Activity in 2024

    VANCOUVER, BC, August 20, 2024 /24-7PressRelease/ -- As seasoned Chartered Professional Accountants in Vancouver, the team at Mew and Company is dedicated to helping individuals and businesses navigate the intricacies of tax law to maximize savings. Each year, the Canada Revenue Agency (CRA) selects individuals for audit, a process that essentially verifies the integrity of the tax system. In 2024, specific audit patterns have emerged, which we are well-equipped to guide you through. For more, visit https://www.mewco.ca/blog/current-cra-business-expense-audit-an-update/

According to a recent article published in the Globe and Mail, in 2024 the CRA is focussing on a few specific areas noted by Vancouver tax planners. Some of these include foreign transactions, business account expenses, the platform economy, and real estate.

High net worth individuals with cross-border business transactions and foreign investments have a greater chance of being audited. This could mean a request for support and backup documentation for foreign tax credits or evidence that income taxes have been paid elsewhere.

Another area to exercise caution is business tax expenses. Many business owners unknowingly make mistakes when reporting to the CRA within the complex Canadian tax system. One area attracting interest is when businesses take a deduction for professional fees paid. There is often confusion between professional fees and personal expenses. Working with a skilled tax accountant can help entrepreneurs and business owners to grasp subtle difference and maximize potential tax savings.

The gig economy has become big business for many Canadians--rideshare, food delivery, social media influencers. CRA agents are focussing energies to ensure Canadian taxpayers are meeting their obligations and educating them about reporting requirements.

It's probably not too much of a surprise to learn that real estate transactions are drawing attention. To combat loss of revenue from house flipping, tax evasion, and more, the agency has publicly noted that it's expanding compliance activities regarding real estate transactions.

There's always going to be an increased risk of audit if the CRA picks up on irregular year-end transactions that are tax-motivated—tax loss selling would be a prime example. It's a much better idea to work with knowledgeable tax accountants who understand long-term business and lifestyle goals and can ideate successful strategies to preserve capital and minimize tax expense.

Mew + Company, Vancouver, is an ideal solution to the taxation problem. With a simple philosophy of building long-lasting customer relationships, the company has been serving corporate clients in a variety of fields—including restaurants, real estate, retail, and the service industry. Investing in their specialist services will undoubtedly be fruitful for all kinds of clients.

To learn more about Mew + Company and discuss their services, log on to https://mewco.ca/

Lilly Woo, CPA, CA, CFE, CFP
Mew + Company Chartered Professional Accountants
604-688-9198

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