CRA Audit Protection for Medical Professionals in Canada
Excludes additional tax, penalties, interest, bookkeeping, or litigation.
Stay Compliant. Stay Protected. Sleep Better.
You heal people. The CRA diagnoses numbers. Even highly compliant medical professionals can face lengthy reviews, administrative strain, and thousands in accounting fees. Dexado’s ex-CRA team offers proactive risk management plus affordable audit protection, so you can keep caring for patients, not paperwork.
Why Medical Professionals Are on the CRA’s Radar
Healthcare practitioners especially incorporated doctors, dentists, and specialists often manage complex billing systems, multiple income sources, and professional expense claims. These characteristics frequently trigger CRA reviews, including:
- Large or Unusual Expense Claims (medical equipment, professional dues, continuing education, travel)
- GST/HST Errors for exempt vs. taxable services and medical supply purchases
- Personal Services Business (PSB) Risk for incorporated professionals under long-term contracts with hospitals or clinics
- Aggressive Compensation Structures (dividends vs. salary, management fees, family member payments)
- Lifestyle vs. Income Mismatches when personal spending exceeds reported income
The CRA audits not only to detect errors but as part of routine compliance checks. A single audit can disrupt patient schedules and increase professional costs.
What Is CRA Audit Protection?
Audit Protection covers representation and professional fees if the CRA reviews your filings during the normal reassessment period (three years for income tax; four years for GST/HST). Dexado’s plan includes:
- Flat, Tax-Deductible Annual Fee that “pre-buys” defense time
- Initial Block of Included Hours at no extra cost
- Deeply Discounted Rate on additional hours (often 50% below market)
Example (illustrative):
A typical audit requires 50-100 hours at $370/hr ($18,500–$37,000). Under our plan, you pay $350/year for three years ($1,050 total), receive 5 free hours (a $1,850 value), and pay just $185/hr for any extra work saving you thousands. Exact terms are detailed in your engagement letter.
Coverage Includes
- T1/T2 Income-Tax Audits & Reviews
- GST/HST Reviews & Audits
- Payroll Reviews
- Notice of Objection Support (pre-appeal preparation & liaison)
- Provincial Inquiries
- Past-Return Reviews & Document Packages
Excludes additional tax, penalties, interest, bookkeeping, or litigation (quoted separately if needed).
How Dexado’s Ex-CRA Approach Works
1. Before an Audit: Proactive “CRA-Proofing”
- Review contracts, associate agreements, and PSB exposure
- Map GST/HST treatment for medical vs. non-medical services
- Implement receipt capture and professional log systems
- Integrate your clinic’s accounting and cash-flow tools
2. If the CRA Calls: Rapid Response
- Intake & Scope: Log the audit letter, deadlines, and issue list
- Shield & Triage: Act as your representative, CRA communicates with us first
- Evidence File: Compile ledgers, contracts, and expense records to meet CRA expectations
- Issue Resolution: Respond on time; file objections if needed
Top Medical Professional Audit Risks & Defenses
| Risk | Defense Strategy |
| PSB Reclassification | Maintain multiple clinic associations, define independence in contracts, and control scheduling/methods. |
| GST/HST Errors | Clearly classify taxable vs. exempt services; maintain supporting documentation. |
| Unsubstantiated Expense Claims | Digitize receipts, log CME/travel costs, and tag expenses to practice activities. |
| Compensation & Family Involvement (TOSI) | Use written employment contracts, document family roles, and keep timesheets. |
FAQ
Q: When can the CRA audit me?
Most reassessments occur within three years for CCPCs and four years for non-CCPCs from your Notice of Assessment date.
Q: How long does an audit typically take?
On average, 50 – 100 billable hours often spread over several months.
Q: What if the CRA finds additional tax owing?
Audit Protection covers professional fees only. Any extra tax, interest, or penalties are billed separately.
Why Dexado? The Ex-CRA Advantage
Led by Boris Davidkov, CPA (ex-CRA auditor), Dexado anticipates CRA questions before they arise. Our healthcare-focused advisory (billing optimization, clinic cash-flow management, compensation structuring) not only reduces audit exposure but also strengthens your financial efficiency. Learn more in our Tax Planning & Advisory service.
Fast Wins to Lower Your Risk Today
- Maintain clear agreements with all clinics or hospitals.
- Confirm GST/HST status for each type of service you provide.
- Automate receipt and mileage logs using secure software.
- Lock in audit protection now to avoid last-minute fees during an audit.