Your Protection from Tax Audits

Tax Investigation Insurance (TII) is a type of insurance which covers tax paying policyholders (business or personal) against the potential costs of a Provincial or Canada Revenue (CRA) action brought against the policyholder.

TII provides more affordable coverage for the professional fees charged by an accountant or tax lawyer representing the policyholder. These can include income tax, GST, PST or HST, payroll deductions, trusts and estates.  The most common CRA requests are reviews, professional services audits and GST, PST or HST Audit

Coverage is simple, as soon as a policy is purchased your complete tax history is covered. This ‘before-the-event’ insurance coverage is renewed annually and covers you when you are audited (or reviewed, or if you appeal a ruling) by the CRA or Provincial Tax Authority.

TII is taken out by those wishing to protect themselves against potential professional fee costs that could be incurred following a CRA approach. These costs most often include fees for accountants to deal with CRA directly on your behalf.

In Summary:
When the CRA looks into your tax filings – whether minor review, or a full-scale audit – Tax Investigation Insurance pays your accountant and/or tax lawyer up to $50,000 to defend you.

Why?
If you pay taxes, you have a risk that CRA may want to review, ask you to substantiate your return or audit your tax filling.  If you want to stand up and let the professional deal with CRA, have these cost covered, then Tax Investigation Insurance is a simple solution.

As a tax payer, you have two choices:

  • Do nothing and take this potential risk on yourself
  • Transfer this risk with the purchase of Tax Investigation Insurance

You can decide yourself if an $85/yr expenditure for a personal policy is worth this ‘piece of mind’.
Premiums for business policies are based on annual revenue and again the cost is very little for a business.

With Tax Investigation Insurance you’re protected when:

  • Your taxes are reviewed
  • Your taxes are audited
  • You want to appeal a decision the CRA makes (for example, if they suggest you owe MORE taxes and you disagree)

Your Entire Tax History – Covered
When you buy Tax Investigation Insurance you’re instantly covered – there’s no waiting period. You’re protected against any investigation the CRA launches while you’re covered.

 

Coverage That Fits Your Needs:

 

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