Getting Audited With Student Loan - What To Do
Wednesday, January 4, 2012
Student files are being selected for audit every year. If your application form is one of them, the information presented in it will be checked for completeness and truthfulness. Penalties apply if your application contains false or inaccurate information. For example, your access to funds may be limited or denied.
You may be required to present some documents. Among them are rent receipts, receipts for tuition and textbooks, and child care receipts. You may be required to present copies of income tax returns, T4 slips, and bank statements. Other documents to supply are a divorce or separation agreement and letters from an employer confirming your income. You may have to supply other documents that help verify the information contained in your application.
It is a good idea to create a file and keep the documentation supplied with your application in it. A working copy of it should be kept as well. You may have to present and refer back to these documents if your loan application gets audited. You may also have to refer to them throughout the academic year.
What will happen if you fail to submit all documents within the timeframe the auditor requires? Your student loan is likely to be revoked, and you will not have access to further financial assistance. Moreover, knowingly giving misleading or false information as part of your application forms is an offense. This applies to other documents as well, and you should be aware of the consequences. You may have to repay your student loan immediately. Criminal prosecution is another likely outcome.
Some three million returns get audited every year, and millions of students receive brown envelopes with a request or demand for information. While you now know what to do if you are audited (submit the required information), there are some things to do at to avoid getting audited. What if you have low income and a lavish lifestyle? Many tax payers are unaware that there is a procedure called net worth assessment. The Canada Revenue Agency can conduct an assessment if the low income you claim covers up under-the-table work. If you annoy someone who know that you work illegally, the Canada Revenue Agency will be after you. Claiming eighty percent of your home expenses and ninety percent of your car expenses for business use is likely to trigger an audit. Regarding these, be reasonable and open a log book. Getting into the cheating habit is a huge mistake. You are quite likely to trigger a repeat review if you were caught being less than honest before. Forgotten T slips are another potential problem. Failing to report income from T slips twice in two years may result in penalties.
You may be required to present some documents. Among them are rent receipts, receipts for tuition and textbooks, and child care receipts. You may be required to present copies of income tax returns, T4 slips, and bank statements. Other documents to supply are a divorce or separation agreement and letters from an employer confirming your income. You may have to supply other documents that help verify the information contained in your application.
It is a good idea to create a file and keep the documentation supplied with your application in it. A working copy of it should be kept as well. You may have to present and refer back to these documents if your loan application gets audited. You may also have to refer to them throughout the academic year.
What will happen if you fail to submit all documents within the timeframe the auditor requires? Your student loan is likely to be revoked, and you will not have access to further financial assistance. Moreover, knowingly giving misleading or false information as part of your application forms is an offense. This applies to other documents as well, and you should be aware of the consequences. You may have to repay your student loan immediately. Criminal prosecution is another likely outcome.
Some three million returns get audited every year, and millions of students receive brown envelopes with a request or demand for information. While you now know what to do if you are audited (submit the required information), there are some things to do at to avoid getting audited. What if you have low income and a lavish lifestyle? Many tax payers are unaware that there is a procedure called net worth assessment. The Canada Revenue Agency can conduct an assessment if the low income you claim covers up under-the-table work. If you annoy someone who know that you work illegally, the Canada Revenue Agency will be after you. Claiming eighty percent of your home expenses and ninety percent of your car expenses for business use is likely to trigger an audit. Regarding these, be reasonable and open a log book. Getting into the cheating habit is a huge mistake. You are quite likely to trigger a repeat review if you were caught being less than honest before. Forgotten T slips are another potential problem. Failing to report income from T slips twice in two years may result in penalties.
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