The HST Blog : Canada Harmonized Sales Tax Lawyer Cyndee Todgham Cherniak for Assessments, PST & RST Issues in Ontario, British Columbia & Quebec

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To my knowledge, there have been no studies on this topic.  If I could ask Shelia Fraser for one favour, it would be to ask the above question. Women are increasingly starting small to medium sized businesses and are taking important roles in large businesses. What I want to know is if women business owners are treated differently than male counterparts in the setting of a sales tax audit.

I have represented many women business owners whose business has undergone a sales tax audit.  Women are generally more organized and prepared for the audit.  The reason is that the letter informing of the upcoming audit is stressful to women business owners. Some women business owners are more emotional in their response to the letter.  Why wouldn't you feel stress?  Many women started their business to provide for a family.  This means that an unfair assessment takes food and opportunities away from the children of the women business owner.  The lioness will protect her cubs.

I have seen good auditors and bad auditors.  I have seen some bad auditors belittle the women business owner.  I have heard bad auditors make personal comments about women business owners in their presence and these comments have no relevance in the context of the audit.  I have seen bad auditors demand documents and make negative comments about the time taken to respond to requests.  I have seen bad auditors treat women business owners as a waitress or secretary.  I have seen bad auditors ignore the answers of a women business owner and seek out a male employee to answer questions.  I have seen bad auditors misstate the law or the tax authority's policies knowing that it would create fear or feelings of powerlessness.  I have seen bad auditors attempt to break the spirit of the women business owner in order to cause audit mistakes and misstatements that can be used against the women business owner in the assessment and justify the auditor's decisions. 

When these bad auditors behave badly, the business owner should ask for a meeting with the auditor's supervisor or manager.  The auditor should provide the name of his/her supervisor and the contact details.  If the auditor will not provide that information, the business owner should call the tax authority to obtain it.  Often it is possible to get information about the GST/HST auditor's supervisor on the Government of Canada Employee Directory website.  As a word of warning, you have to be careful when taking this step and there must be real evidence of treatment outside the normal range for an audit (never a pleasant experience for women and men) or evidence of a disagreement that requires a supervisor's intervention.

While self-serving, the assistance of a sales tax lawyer also helps.

This blog article is for all the women business owners who have had an audit experience and would like to share their lessons learned with other women.