CRA requests for personal banking info: Out of line?
Source: CPA Canada’s Web site
Author: Bruce Ball, FCPA, FCA, CFP
Many practitioners are surprised when tax auditors ask for banking records from business owners and their families. Find out the reasons behind these requests and how you can make small business audits proceed more efficiently.
Asking taxpayers for their personal banking information is invasive – a fact that the Canada Revenue Agency (CRA) recognizes. Many small business owners and their advisers believe these requests are out of line.
But, the CRA does not make these requests lightly. In fact, the CRA says its processes aim to ensure tax auditors only ask for complete bank records after a CRA assessment suggests that a business might be at risk for unreported income.