Canada operates on a self-assessing tax system; taxpayers are ultimately responsible for calculating the amount of tax to be paid on their income. While there are many ways to complete a tax return, there is only one way that is to the best overall advantage of the individual family unit. The Accounting Place (TAP) will take a look at your last 3 years of tax returns, at no charge, and thoroughly review them to ensure they have been done correctly and efficiently.

The Benefits

• Utilization of tax saving strategies: Tax Specialists at TAP keep up to date with tax laws and newest credits to make sure you are getting the best possible outcome on your tax returns.
  
• Enhance Compliance: Ensuring that prior tax returns have been filed correct, helps to avoid any potential CRA audits/penalties.
  
• Optimization for Future Tax Planning: TAP becomes familiar with your specific tax situation and can suggest strategies for wealth retention going forward.

What Can Be Uncovered

• Misclassification of Expenses or Income
  
• Inefficient use of Credits: Tax benefits/credits may be transferred to other family members to optimize their value.
  
• Overpayment of Taxes

The Process

• In Depth Review: Once TAP gathers all required information, their Tax Specialists will review your returns, making sure everything is to your best overall advantage.
  
• Providing Guidance: Throughout the recovery audit process, TAP will offer guidance and recommendations to optimize your tax planning strategies, potentially leading to tax savings.

What We Need from You

To proceed with the 3-year tax recovery audit, we will need the following from you:

• Authorization Forms: TAP to connect to CRA and Croft regarding your tax information.
  
• Previous Tax Returns: Copies of your previously filed tax returns with accompanying T-slips/ receipts for the recovery audit period.

What Happens if We Find Something

If any issues are discovered during the 3-year tax recovery audit, we will promptly inform you of the findings. We will work together to rectify the identified problems, taking appropriate corrective measures to ensure compliance with tax laws and regulations. Although the 3-year tax review is free, if TAP discovers an issue that requires re-filing, there will be an added fee. Our aim is to resolve any discrepancies and minimize the impact on your wealth retention, while also recommending beneficial tax planning strategies for future years to come.

NEXT STEPS

When an Advisor has a client interested in participating in the 3 Year Tax Recovery, it is expected that these steps will be followed.

• Advisor will submit an Online Request Form to Croft providing the required information or reach out to our IWM Coordinator directly.
  
  • Complimentary 3 Year Tax Recovery Audit Request Form
    
• IWM Coordinator will set up the Client folder within the Advisors folder via Couchdrop
• Advisors will be sent instructions via email to access Couchdrop to view all their clients’ documents (if access has not been set up already)
• Client Upload folder and onboarding package will be created, and Advisor will be notified.
• The onboarding package can be sent to the client for signing one of two ways:
  • If wet signature required, Advisor will be notified that signing package is available and may be accessed through Couchdrop for review and signing with client.
  • If digital signature is required, IWM coordinator will send greeting email to client (Advisor CC) with instructions on how to complete the digital signing package.
• Once the onboarding package is complete, clients will provide Advisor with required documentation (see below).
  • If Advisor prefers us contacting client directly, IWM coordinator will send a secured link to clients for upload.
• Once all documentation has been uploaded, it will then be sent to The Accounting Place and the review will begin.

Required Documents

Clients are asked to provide their last 3 years of tax returns, with their most recent return being a full copy. (Previous 2 years may only be the summary)

Tax Recovery Audit Completion

When the Tax Specialists have finished the 3 Year Tax Recovery Audit, they will reach out to the Advisor via email with the results. If there are any errors discovered, the Tax Specialists will coordinate with the advisor on setting up a client call to discuss the issues found, and next steps to resolve them.

If you have any questions or concerns, please contact our IWM Coordinator Bella at iwm@croftgroup.com and she will be happy to assist you.