An audit of my businesses by Canada Revenue Agency that started in June 2011 appears to be nearing its completion. I was "chosen" because of my Ebay powerseller status but when the auditor got here he found that I do more than just Ebay ( Taxi Business, Ebay, mail order, antique malls). Today he arrived with questions about expenses and I was able to match paper bills/invoices for all my expenses entries that he questioned so he did not find any changes to be made in expenses. He had determined that the sales figures that I reported were valid and accurate. It appears that there will be no changes to the tax returns I submitted for the years audited ( 2008 & 2009).
If the reader of this is lucky enought to be chosen to be audited be aware that the auditor will have Ebay sales data and Paypal data on his/her laptop. The auditor that I got had made some effort to understand Ebay before he started, and for a bean counter he was not a bad type. If you have reported your income properly, and written off expenses properly, and have some sort of proof to support any expenses written off an audit while not a fun experience is not the end of the world. My auditor spent 3 days here, but obviously had done a lot of work playing with my records in his office.
