Here Is An Idea - Scheduled ORST Audits
The HST Blog is a forum where practitioners should be able to raise good ideas. I have one to share with you - Since there must be audits, wouldn't it be nice if you could schedule an Ontario retail sales tax audit after July 1, 2010? Wouldn't it be nice to be able to be able say to the Ontario Government that you wish to invite them to your business to conduct the final Ontario retail sales tax audit so that you can put the assessment risk behind you?
Not all businesses would opt for a voluntary audit in the hopes that mistakes will become statute barred (the Retail Sales Tax Act contains a 4 year limitation period, which can be extended if there is a misrepresentation attributable to neglect carelessness or wilful default or fraud). However, the businesses that have taken care to comply with the Retail Sales Tax Act and regulations thereto would have little to be concerned about and would line up early to close the ORST books.
if there were to be scheduled audits, the business people can arrange their schedules and have the relevant records ready for an auditors review. This would be a fair approach. This would be business-friendly approach.
So, Ontario - what do you say to a program where vendors and purchasers can call and schedule a retail sales tax audit at a convenient time?
Cyndee Todgham Cherniak is counsel to and in affiliation with the International Trade Law and the Tax Law (Commodity Tax
