Provided by your accountant, Audit Shield provides for the relief from payment of professional fees, up to a prescribed amount that are incurred in the event you are selected for an audit, enquiry, investigation or review (audit activity) instigated by the Canada Revenue Agency (CRA) and other provincial revenue agencies.
The cost of being properly represented can be quite considerable depending on the circumstances. Even a simple audit or investigation can require hours of work.
Audit Shield provides a fixed, cost effective solution to guard against these unbudgeted costs.
What is Audit Shield?
Audit Shield provides for the payment of professional fees incurred in the event that you are selected for an audit, enquiry, investigation or review (audit activity) instigated by the CRA and other provincial revenue agencies.
The cost of being properly represented can be quite considerable depending on the circumstances. Even a simple audit or investigation can require hours of work. Audit Shield provides a fixed, cost effective solution to guard against these unbudgeted costs.
What does Audit Shield cover?
When you select to opt-in to the Audit Shield offering with your accounting firm all professional fees up to a prescribed amount are included when you engage your accountant in audit activity matters.
Audit Shield is retrospective, so all previously filed returns are also included in the protection.
With Audit Shield you are protected for:
Is it right for me?
If your accountant offers Audit Shield you can take advantage of the Audit Shield offering by requesting to be included in their program. Anyone can be targeted for audit activity, even if your filed returns are accurate.
Data matching capabilities are profound, and are increasing the level of audit activity of both compliant and non-compliant taxpayers. With this in mind, you should protect yourself with Audit Shield. If you would like to learn more about Audit Shield, please ask your accountant.
Frequently Asked Questions.
Data matching becomes more sophisticated each year. This makes it simpler and far more likely for previously untargeted tax payers to encounter audit activity, despite being compliant.
With Audit Shield, you can rest assured knowing that the relevant professional fees will be protected. Often these fees can be greater than those your accountant may charge you for completing the return(s)/filing(s).
In Canada payment for Audit Shield is ordinarily tax deductible for businesses.
Yes. The protection is retrospective, so previously filed returns are included automatically.
Case Studies.
Take a moment to read through a few of the thousands of claims that are processed using Audit Shield.
The CRA and other provincial revenue agencies are increasingly active in conducting audit activity in response to filed returns. Audit activity includes audits, enquiries, investigations and reviews.
Taxable Benefits
As a result of data matching between Transport Canada and the (CRA) in respect of vehicles registered under a company name subsequently led to a Taxable Benefits review. This was a result of the company not including an amount for the GST in the value of the Taxable Benefits nor disclosing any employee contributions in their tax filings.
In the review some vehicles were found to be Taxable Benefits exempt however other vehicles were found to be non-compliant with the Taxable Benefits rules.
Professional fees of $8,945 were incurred, and fully covered by Audit Shield.
Corporation Post Assessing Review
A Calgary based entity was selected for a Corporation Post Assessing Review in relation to Professional Fees. All of the CRA queries were answered including providing them with the detailed list of transactions and a copy of invoices and receipts. Upon review, the CRA decided that no changes were needed.
Professional fees of $1,225 were incurred, and fully covered by Audit Shield.
Examination of GST/HST
Upon filing of the GST/HST Return, the CRA rang the accountant to advise them that they were reviewing the return prior to the refund being issued. A follow up letter was issued where the client was required to provide several documents including copies of invoices. The refund was eventually approved.
Professional fees of $1,495 were incurred, and fully covered by Audit Shield.
T1 Processing Review
After receiving their Notice of Assessment for their 2017 Individual Income Tax and Benefit Return (T1), the client received a letter from the CRA requesting more information about the medical expenses claimed. After providing the information to the CRA, they decided that no adjustment was necessary.
Professional fees of $945 were incurred, and fully covered by Audit Shield.
Trust Accountants Examination – Payroll
CRA arranged to visit the clients premises in Toronto to examine the books and records including payroll journals and list of subcontractors, bank statements and T4 slips. After the examination, the CRA requested further information and expanded the periods under review. This review continued over a 6 month period with adjustments of $4750 being made and payable by the client.
Professional fees of $3,550 were incurred, and fully covered by Audit Shield.
Without Audit Shield these cases would have resulted in the costs of the work being undertaken to be passed onto the individual or business in question, or the accounting firm would have had to sustain the costs.
Audit activity can be costly. Don’t risk it!
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