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  • Richard Fonagy

Are Your Expenses Reasonable or Should You Be Worried? How To Confirm:



This may be one of the most important websites to avoid an audit:


If you want to compare your clients NAICS code to what CRA expects to see in your clients industry, you can see what the average is here.


For example if you are in the construction industry, and the typical gross margins is say 50% (just using this number for example) and your clients gross margin is 80%, this may indicate cash jobs, where revenue is not claimed, however expenses are for these cash jobs.


This enables you to check to see if there may be a problem if you being to aggressive with deductions or you may need to prepare if the expenses are reasonable for a potential audit.


THIS INFORMATION IS COLLECTED FROM ALL OUR FILINGS OF BUSINESSES ACROSS CANADA FROM TAX RETURNS.

https://ised-isde.canada.ca/.../financial-performance.../en

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