The Tax Audit Part 7 - After the Audit

Once the audit is complete you will get a Notice of Re-assessment from the Tax Centre.  Read it and try to understand it.  Make sure it matches what you have agreed to, or not agreed to, with the auditor (it should be exactly what was in the proposal letter).  I have actually seen Notices of Assessment that are not the same as the amounts that were proposed by the auditor.
Depending on how big the assessment is you may get a call from the CRA’s collection department.  Their job is to collect the debt that is now considered to be due and outstanding.  I have heard both good and bad stories about this part of the process.  The best situation is where you can pay off what you owe immediately.  However, reality is usually much harsher and most people do not have a bunch of extra money kicking around.  In this case you want to try and set up a payment arrangement with the CRA.  If you are reasonable and can make decent payments they will usually accept payments over time.  The key to remember is to be reasonable and up front with CRA and not let the settlement process drag on.  If you are evasive or unreasonable they can make your life a living hell.  The CRA has the ability to apply refunds from other areas (GST credits, Income Tax refunds from prior and subsequent years) to your debt, guarnashee wages from your employer, seize bank accounts, or put liens on property you own.
Once the re-assessment is created CRA believes you now have a debt that needs to be paid.  That said, you are not a criminal, and you should not be treated like one.  You should be treated with respect, dignity and compassion.  You should never be threatened.  You can be told about potential negative consequences, but it should never come out as a threat.  I have heard stories, from reliable sources, where people have been told their business will be shut down, their assets seized, etc.  This is not true.  CRA cannot shut your business down.  They can make your life miserable though.  There was a story in the news about the owner of a trailer park losing their business because of CRA  (which is true), but it was because the bank called the loan the owner had, not because CRA shut them down.
If you disagree with the position CRA has taken on re-assessing your taxes, you can appeal the decision the CRA has made.  If you are going to object / appeal the re-assessment you do not have to pay the amount which you are going to dispute.  If you are contacted by collections tell them you are appealing the re-assessment and you do not want to pay.  You have the right to not pay until the appeal section and or Tax Court make their final ruling.  Keep in mind that interest charges will continue to accumulate and grow until the amount is paid (this is of course not relevant if you win).  At this point in time if you do not have the funds to pay CRA I would highly recommend that you start saving.  If you lose at least you will have a good down-payment, but if you win you will have money for other things.
If you are going to appeal the re-assessment it is important to note that you have a limited amount of time.  In fact you only have 90 days from the date of the re-assessment to submit your appeal.  At this point I highly recommend getting professional help.  Writing appeals requires knowledge of Tax and an understanding of exactly why CRA has adjusted your return, and more importantly an understanding of how to argue against the positions CRA has taken.