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Forest Revenue Audit Program
Effective March 30, 2006, the Forest Act was amended and a Forest Revenue Audit Program (FRAP) was created. FRAP helps ensure the province receives the money owing to it from the harvesting of Crown timber.
For billing purposes under the current system, those authorized to harvest Crown timber, mills or brokers report the volumes of timber harvested to the Ministry of Forests and Range.
The Forest Act now allows the Ministry of Small Business and Revenue to inspect, audit and assess for under-reported or unreported stumpage owing to the province.
To allow for familiarity with the program, FRAP's implementation will be gradual and will include initial courtesy visits. If you would like to arrange a courtesy visit, please contact us.
What is an audit? |
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Under FRAP, an audit is a formal examination of a forestry client's records to ensure stumpage has been reported. An audit will identify any areas where this may have been done incorrectly. |
Who gets audited? |
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Any forestry client, including businesses large and small, can be audited under FRAP. Clients may be chosen based on a special audit project, legislated program, risk, or referral from another audit. |
What happens during an audit? |
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Before the audit, we will make contact with you if we need to meet and/or have access to your records. |
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At the start of the audit, we will review the audit process and Taxpayer Fairness and Service Code rights at your place of business or representative's office. |
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During the audit, we will review your records and be willing to discuss issues of interpretation that arise from the audit. |
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We will work with you to ensure the audit is completed in a timely manner, taking into consideration your business needs. If you have any concerns, we will work with you to resolve them as quickly as possible. |
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We will safeguard your records without compromise. |
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We will notify you of any refund entitlement discovered during an audit. |
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When the audit is complete, we will review and explain the results, notify you if an amount is owed, and make you aware of your options if you disagree with the results. If needed, you will be given a reasonable time period to review the results before an assessment is finalized. |
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If you provide additional information after the audit, we will review it and determine if an adjustment is needed. |
Appeals? |
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If you disagree with the results of an audit, and/or with the resulting Notice of Assessment, you have the right to appeal. Please see our Appeals page for more information. |
Waiver of Assessment Period |
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A waiver allows a client to voluntarily extend the assessment period in connection with a specific issue.
The usual assessment period of six years does not apply if a client has: |
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made a misrepresentation or committed fraud in providing information under the Act |
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filed a waiver within the assessment period |
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not reported stumpage due for the period |
A waiver accommodates circumstances where there is not enough time for an adequate resolution to an audit. It improves the accuracy of an assessment by allowing additional time for discussion and collection of information before an assessment is made.
You can file a waiver by using form FIN 144, Waiver of the Time Period for Assessment. Once a waiver has been filed, it is in effect until six months after you file form FIN 158, Notice of Revocation of Waiver. Once a notice of revocation has been filed, it cannot be cancelled.
For more information about FRAP, please see Bulletin FRAP 001, Forest Revenue Audit Program Overview.
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