” Subject: Tax audit for the years 2022 and earlier.

We are currently auditing your tax returns for the 2022 tax year and prior years. To enable us to continue this audit, please complete the attached questionnaire and return it to the undersigned within 21 days.”

Here’s a form you can use when Revenu Québec or the Canada Revenue Agency sends you a letter informing you that a tax audit of your affairs has begun! Panicking won’t do you any good. Here are a few tips to help you prepare for this eventuality.

o Be tidy

Orderliness is, without doubt, one of the most important elements. This means having well-prepared books and records, and all supporting documents properly filed. You need to make sure you can easily justify your income and expenses.

o Be patient

A tax audit can take weeks, months or even years. It’s important to be patient, as this can be a laborious exercise. A tax audit is not a sprint, it’s a marathon. It’s in your best interest to take the time you need to respond properly to the various requests, as this is likely to be to your advantage.

o Be well advised

Having a third party sticking their nose into your personal affairs and asking you for countless documents or justifications can easily become stifling. Being accompanied by a knowledgeable professional will help you see things more clearly and take a ton of pressure off your shoulders.

To remember:

Order, patience and good advice will help you get through a tax audit. So don’t hesitate to consult your preferred tax lawyer for diligent advice!