Student files get audited every year. If it happens that your application form is among them, the information you have supplied will be checked for truthfulness and completeness. Where appropriate and if false information is found, penalties apply. For instance, you may be denied access to funding or it may be limited.
Students may be required to supply a number of 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 include letters from your employer that confirm your income and a separation or divorce agreement. In addition, you may be required to supply any other documentation that will make it easier to verify the information presented in your application.
It is important to make a file of the documentation you have included in your student loan application. A working copy of it should be kept as well. If your application is chosen for audit, you may have to refer back to these documents. Or you may need to refer to them during the academic year.
What will happen if you fail to submit all documents within the timeframe the auditor requires? You may see your college loan revoked, and financial assistance may be discontinued. It is also an offence to knowingly present false and misleading information. This holds true for other documents, and you should know the consequences. You may have to repay your student loan immediately. Second, you may face criminal prosecution.
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 a lavish lifestyle and a moderate or low income? Though you are a tax payer, you may not know there is net worth assessment. The Canada Revenue Agency can conduct an assessment if the low income you claim covers up under-the-table work. If someone knows your income, and you annoy them by mistake, you may have some explaining to do. Then, you are likely to trigger an audit if you claim 90 percent of your car expenses and 80 percent of your home expenses for business use. 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.
Students may be required to supply a number of 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 include letters from your employer that confirm your income and a separation or divorce agreement. In addition, you may be required to supply any other documentation that will make it easier to verify the information presented in your application.
It is important to make a file of the documentation you have included in your student loan application. A working copy of it should be kept as well. If your application is chosen for audit, you may have to refer back to these documents. Or you may need to refer to them during the academic year.
What will happen if you fail to submit all documents within the timeframe the auditor requires? You may see your college loan revoked, and financial assistance may be discontinued. It is also an offence to knowingly present false and misleading information. This holds true for other documents, and you should know the consequences. You may have to repay your student loan immediately. Second, you may face criminal prosecution.
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 a lavish lifestyle and a moderate or low income? Though you are a tax payer, you may not know there is net worth assessment. The Canada Revenue Agency can conduct an assessment if the low income you claim covers up under-the-table work. If someone knows your income, and you annoy them by mistake, you may have some explaining to do. Then, you are likely to trigger an audit if you claim 90 percent of your car expenses and 80 percent of your home expenses for business use. 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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