CRA help for your business
ARC CPA is a Halifax accounting firm. When the CRA sends a letter, starts a review or opens an audit, we deal with them for you, and we make sure the books behind every answer are right.
What it means when the CRA contacts your business
CRA contact with a business almost always takes one of a few forms. Each one comes with a deadline, and each one needs an answer that is accurate, complete and backed up by the books.
A letter asking for documents
A review of specific claims, very often vehicle expenses and meals, which the CRA scrutinizes closely. The letter sets a date, and the response has to support exactly what was claimed.
An HST or income tax audit
An auditor working through a period of the business’s records. Sometimes it is already under way, with an accountant who is not getting anywhere, and someone needs to take over quickly.
Returns that were never filed
HST or tax returns that came due while the books were behind. Often the owner is not sure how many are missing, and the CRA is already sending reminders.
A balance nobody explained
An assessment, an instalment reminder or an amount owing that does not match what the owner expected, with interest adding up while it sits.
A letter from the CRA is a question, not a verdict.
Most CRA contact is the CRA asking a business to support what it filed. When the books are right and the answer is prepared properly, that is usually where it ends.
The first thing we do is become your authorized representative. From then on the CRA deals with us, and you can get back to running the business.
Fully compliant, and not a word more than asked
We work with the CRA, not against it. Every question gets answered, every document requested gets sent, and every deadline gets met. A complete, organized, on-time response is the quickest way through a review or an audit.
What we do not do is volunteer information the CRA has not asked for. That is not about hiding anything. A review goes best when each answer is clear, exact and backed by the records, and extra explanations nobody asked for only blur it. An auditor also reads everything that is sent for clues about where to look next, so one extra explanation or document can turn a question about one expense into a question about the whole year.
Being fully compliant means answering every question confidently, clearly and completely. That is why it helps to have ARC CPA in your corner. We deal with the CRA constantly, and we know what a clear, complete answer looks like.
If the auditor doesn’t ask about it, don’t give any extra context. Every time you volunteer an extra sentence, you’re giving the auditor a chance to look into something else.
How ARC CPA handles the CRA for you
Whether it is an audit or a letter asking for a few documents, it runs in the same order.
- 01
You make us your representative
We show you how to add ARC CPA as your authorized representative. It takes a few minutes, and from then on the CRA contacts us about your business, not you.
- 02
We review your CRA accounts
We go through everything the CRA has on file for your business: letters that need a response, returns that were never filed, balances owing and the deadline on each.
- 03
We answer what was asked
Responses to reviews and audits prepared by us, complete, supported by the records and in before the deadline.
- 04
We fix the underlying issues
Whatever led to the CRA contacting you gets fixed: missing returns filed, expenses recorded properly, and the books caught up and reconciled, so the same question does not come up again.
- 05
You stay ahead of the CRA
From day one with ARC CPA, returns are filed on time, payments are set up in your online banking, and we keep the calendar for your tax payments, instalments and HST remittances.
Most CRA problems start with books that are behind or wrong, so CRA work usually means taking over the accounting too. That way every answer we give the CRA is backed by books we know are right.
Heard from the CRA? Send us what they sent you.
Tell us whether it is a letter, a review or an audit, and the deadline on it. We will tell you what it means, what we would need from you and how we would handle it.
Behind on your returns? The penalties can often be avoided.
When HST or tax returns have not been filed, the worry is usually the penalties and interest building up behind them. The good news is that a lot of the cost of those penalties can go away. In October 2025, the CRA made changes to its Voluntary Disclosures Program that make it easier for business owners to fix missing returns. Sole proprietors and corporations can both apply, and a business that comes forward before the CRA contacts it about the missing returns can have all of the penalties and 75% of the interest cancelled.
Timing is what decides it. Once the CRA has been in touch, interest relief drops to 25%, and a business already under audit cannot apply at all.
We catch the books up, prepare the disclosure and file every return that came due along the way, then file on time from then on. If relief is not available, we tell you the number early, so it is a known cost rather than a surprise.
Come forward before the CRA does.
The most relief from penalties and interest is available before the CRA gets in touch, so the sooner the missing returns are filed, the better. Not sure what is missing? Once we are your representative, we can see exactly what the CRA sees and tell you where things stand.
Dates and rules to know.
- Representatives
- A business can authorize an accountant to deal with the CRA on its behalf, so the CRA deals with them directly
- Response dates
- CRA letters usually set a date to respond by. It is the one part of the letter never to ignore
- Keeping records
- The CRA expects business records to be kept for six years from the end of the tax year they relate to
General guidance only. We confirm the dates that apply to your business when we talk.
CRA help for your business, answered.
What should I do if I get a letter from the CRA?
Read it for the deadline, do not ignore it, and do not call the CRA to explain. Get in touch with us instead. Once ARC CPA is your authorized representative, we deal with the CRA directly and tell you what the letter actually means.
Should I talk to the CRA myself or let my accountant handle it?
We recommend letting your representative handle it. Auditors take note of everything they hear, and it is easy to raise a question nobody was asking. With an authorized representative in place, the CRA deals with your accountant instead.
What is a CRA authorized representative?
Someone your business has given permission to deal with the CRA on its behalf: answering questions, submitting documents and seeing what the CRA sees. Adding us is the first step with every client, and we show you how.
What should I send the CRA during an audit?
Everything that was asked for, organized and on time, and nothing beyond it. We prepare the response for you.
Can I change accountants during a CRA audit?
Yes. Some of our CRA work is exactly that: an audit under way, an owner not getting anywhere with their current provider, and a deadline close. That usually means taking over the accounting as well, and we move quickly.
What happens if I have not filed HST or tax returns for years?
We find out exactly what is missing, catch the books up, and file every return that is outstanding. From then on the returns are filed on time from monthly books. It happens far more often than people think.
Can CRA penalties and interest be waived?
In many cases, yes, if you come forward before the CRA does. Under the Voluntary Disclosures Program, a business that corrects or files its returns before the CRA contacts it about them can have all of the penalties and 75% of the interest cancelled. Outside that program, relief generally needs a serious event outside your control, such as a death in the family or a serious illness, and a decision can take about a year.
What is the CRA Voluntary Disclosures Program?
It is the CRA’s program for businesses and individuals who come forward on their own to fix past mistakes or file returns they missed, including sole proprietors and corporations. The CRA changed the program in October 2025 to make it easier to use. Now, an unprompted disclosure can get full penalty relief and 75% interest relief, and one made after the CRA has been in touch gets 25% interest relief. A business already under audit cannot apply. We prepare the disclosure and file the returns with it.
How do I make a payment to the CRA for my business?
Usually through your online banking, with a separate payee for each kind of tax, such as HST, corporate tax and payroll. It is less obvious than it should be, so we set it up with our clients once and lay out the dates they need in their calendar.
Let ARC CPA deal with the CRA.
Send us a note about your business. A conversation is usually enough to tell whether we are a fit, and we will say so either way.
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