Small Business and Revenue

Audits

This Ministry of Small Business and Revenue is responsible for the administration of tax under various provincial statutes, including the Hotel Room Tax Act. To ensure this happens in accordance with the legislation, we routinely conduct audits of taxpayers.

What is an audit?

An audit is a formal examination of a taxpayer's financial records to ensure taxes have been collected, remitted or paid as required. An audit will identify any areas where this may have been done incorrectly.

Who gets audited?

Any taxpayer, including businesses large and small, can be audited. Taxpayers may be chosen randomly or based on a special audit project, legislated program, risk, or referral from another audit.

Effective February 21, 2007, audit assessment limitation periods are reduced from six years to four years. This includes assessments related to audits that began before February 2007 but have not had a Notice of Assessment issued. This change does not impact periods for which an audit period waiver has been signed or cases of fraud, which do not have a limitation period.

What happens during an audit?

The Understanding Your Consumer Tax Audit bulletin (GEN 009) outlines what to expect during an audit and how to prepare for it. It includes a flow chart outlining the audit process. The bulletin also contains information about what auditors look for during an audit, which may help you with your record keeping.

If you have been selected for an audit, you can expect us to follow these steps:

Before the audit, we will make contact with you if we need to meet and/or have access to your records.

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.

During the audit, we will review your records and be willing to discuss issues of interpretation that arise from the audit.

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.

If you provide additional information after the audit, we will review it and determine if an adjustment is needed.

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.