When dealing with the Canada Revenue Agency (CRA) pay your taxes on time, follow the rules and be helpful, but not overly so.
That's the advice of David Pedora, a business development representative with Farm Business Consultants (FBC) of Calgary.
Pedora gave that advice during an Olds & District Chamber of Commerce Lunch and Learn session at the Cow Palace.
During an interview with the Albertan, Pedora was asked what things businesses should do to avoid having problems with the CRA.
His number 1 advice is to follow the CRA's bookkeeping rules.
"Another thing, as simple as it seems, would be filing a return ñ and on time, because you know, they are in the business to collect and we understand that," he said.
"If you can refrain from waving a little yellow flag over your head, and all it takes is filing a return and doing it on time, they definitely look at that."
When it comes to expenses, Pedora said don't just throw out numbers; make sure you've got receipts for them.
"They've got to be substantiated, got to be backed up and they've got to be reasonable."
"I guess if you do get that call from CRA to say that ëwe want to come and take a look at things,' have somebody with you who can speak their language, because they do speak a bit of a different language, and that way, you've just created that buffer maybe ñ even a little insurance policy ñ between you and what they're trying to accomplish," Pedora said.
"It can help expedite that whole process of the audit. The more cooperative you are, the more helpful you are ñ within reason ñ the faster they're going to get through what they need to get through.
"But again ñ don't be over helpful. If they ask for a receipt, go get a receipt and bring it back to them. Don't grab the box, because then they'll start thumbing through the box.
"And they'll go, ëoh, this one looks interesting.' ëOh, I like the looks of this one, we'll take a look at that one.' So now, instead of having one receipt that they're looking at, they may have a dozen."
"So again, be helpful, be pleasant, but don't be overly helpful."
"The more cooperative you are, the more helpful you are ñ within reason ñ the faster they're going to get through what they need to get through."DAVID PEDORA CALGARY-BASED TAX CONSULTANT
