The Single Biggest Reason I saved $4500 During My Tax Audit
Three years ago I received the dreaded letter from Canada Revenue Agency (CRA) for my taxes filed in 2009. I owed $5000!
Two thousand and nine, was the year I had decided to educate myself on behaviour science and at the same time use my own money to put up events across Alberta to teach Law of Attraction and The Wealthy Mind. While putting out thousands of dollars on educating myself and speaking for $500 here and there - I wasn't turning any profit. I guess that raised a red flag.
'I don't owe them $5000 and I don't know what to do?' I told my accountant.
'Do you have your paperwork?,' he asked
I had kept all my paperwork and started tracking all my expenses and income on an excel spread sheet to present to CRA. I was nervous - I didn't have $5000 lying around in my bank account and we had finally got rid of my husband's retail store and had paid off everything we owed. NOW THIS!
I was panicking alright, but my husband urged me to speak to a person he knew who had just retired from the CRA.
'Do you think you owe them this much?,' Retired Mike asked (not his real name).
'No! I was ethical about all of it - any cash I made went straight into paying off my credit cards. Why are they coming after someone like me, 'why can't they go after those who are not ethical!' I exclaimed (I felt my values were being violated)
'Then go all the way. If you believe in yourself, appeal,' he stated with confidence.
It was what Retired Mike had said: 'If you believe in yourself,' that gave me such a boost of confidence. I no longer panicked. In fact, I was so sure of myself and I had all the evidence.
During my meeting with an auditor, the amount owed dropped from $5000 to around $2000. Now if you were me, what would you do:
- Be relieved and pay it off. After all you saved $3000!
- Appeal further
Well, I went for the latter- I appealed, even though I was told by many close to me to pay off the $2000 and let it go, I decided not to because I believed I didn't owe that much either.
CRA asked for more evidence that I couldn-t present before, but I dug deep by calling the merchants I had dealt with and asking for copies of my invoices. It worked!
During my appeal, I had to really prepare myself. Do you agree that your mindset also controls your physiology and your voice?
When someone is upset or frustrated, you can see it in the physiology - clenched teeth and turning red.
When someone is sad or depressed, the physiology mimics the mindset - head down, walking slowly and cries easily.
I knew I wanted to sound confident and sure of myself, and I had an intent. My intent was to win. With that mindset, my physiology improved - I held my head high and made sure I spoke with a strong confident voice.
After seeing the evidence and hearing my case, the officer dropped the amount owed from $2000 to around $500! WOW!
When you believe in yourself and you live within your values, you will stand by your word and do what is right - no matter what.