The Case of a Dispute with CRA
A client in the construction industry was audited by CRA for a period covering two fiscal years. They wanted to disallow credit notes issued for back charges, rate changes, or outright refusal to pay—and also disallow bad debt write-offs for two years. Our client was distressed because it meant an increase in the total taxable income and a very high tax liability.
CRA dragged the audit out over two years without changing their position.
Scarrow Yurman & Co filed a notice of objection and provided the appeals officer with sufficient documentation to eliminate almost all of the additional taxable income. In the end, the final tax bill was less than 10% of the original tax assessment.