According to CRA, "the emphasis is on helping individuals and small businesses better understand their tax obligations."
Anytime you get a letter from CRA, it's important to fully understand what they are asking for and how to comply before you respond.
It's also a good reminder to have your ducks in a row. Complex transactions should be documented to show the path and logic, such as asset transfers, debt clean-up and so on. If you're called up on the carpet by CRA you're going to have to explain why and how these transactions occurred.
And good bookkeeping is basic. Bad bookkeeping is (notice I said "is", and not "could be") every costly. Even if you have a bookkeeper doing it for you it can be done poorly. Unlike other professions, bookkeeping isn't regulated and there are many people with little or no true bookkeeping training claiming to do this work. Here's an article by Candace Surette of Crowe MacKay LLP explaining some of the more common pitfalls. Happy reading!
Want more information or help with this? Email or call to speak with me personally!