The Taxman Cometh - Ontario Retail Sales Tax Audits Are On the Increase
I am seeing more Ontario retail sales tax (ORST) audits (and large proposed and actual assessments). I am seeing rushed audits. I am seeing quick analysis without the auditor referring questions to Tax Advisory. The reason is that we are in the final 13 months of ORST auditors working for the Ministry of Revenue before moving to the Canada Revenue Agency. Almost all ORST auditors will change jobs in Match 2012 and, therefore, all their audits need to be complete and assessments issued. This is why we are seeing so much activity, because there isn't much time left to visit all vendors who were registered for ORST purposes.
A range of businesses are being targeted - restaurants & bars, graphic designers, interior designers, cabinet makers and other installers, software manufacturers, manufacturers, printers, telecommunications companies, builders, accountants, etc.
If you are assessed, you may wish to file a notice of objection.
Under the Retail Sales Tax Act, the notice of objection must be filed within 180 days of the date of mailing of the statements of notice of assessment (look at the notice of assessment and/or the envelop).
Cyndee Todgham Cherniak is counsel to and in affiliation with the International Trade Law and the Tax Law (Commodity Tax
