Tax Payers And Businesses Can Now Protect Themselves From Unexpected Professional Fees Via Audit Shield
With new data-matching capabilities that the government has in its arsenal, government agencies such as the Canadian Revenue Agency (CRA) can easily access tax payers and audit their taxes easily. The technology allows CRA to select and audit any person, even if they are law-abiding, compliant, and have never had any problem with the law. This isn’t much of an issue if they are filing their taxes correctly, but one downside is that there are cases when taxpayers have to shoulder some professional fees incurred because of enquiries and investigations.
How can tax payers protect themselves from these unexpected fees?
What actually happens is that once the government requests to review a previous tax filing, for example, some companies have to charge a professional fee to respond to the request and allow the enquiry. Customers would then be surprised that they suddenly have to pay for this even if they haven’t done anything at all.
To help customers avoid these unexpected fees, some companies are starting to offer Audit Shield. This program protects clients from these audits. If a client is enrolled in the Audit Shield program, the companies waive their fees for the enquiry, including employer compliance and payroll audits, corporate tax and business audits, Work Safe BC worker’s compensation employer audit programs, and personal tax post-assessment programs for the clients and their immediate family members.
Eligibility and Payment
Eligible clients are given invitation to join the program with the details and different options. Audit Shield would only require an annual fee to cover professional fees for audits, reviews, investigations, and enquiries.
Businesses are not safe from these surprise enquiries either, and just like with other taxpayers, they may have to shoulder the professional fee that is needed to respond to the government agency’s request. Likewise, they can also ask their service providers for Audit Shield to receive the same protection that other tax payers can enjoy.
The government may sometimes ask for documentation to show how a business was able to reach a certain amount of money, or in businesses where fast cash transactions are involved such as in the hospitality sector. Similarly, companies with long-term projects such as construction may also need to submit certain documents because projects often span a number of tax years.