Did you know? It can take several hours to several months (and sometimes even years) to resolve an audit.
Even if you follow all the rules and your accountant checks and double-checks your tax returns, you could still be targeted for an audit.
Once the CRA has you in their crosshairs you have a few options:
- Provide the required documentation and pay the assessment
- Defend it yourself without professional guidance (not recommended)
- Let the Professionals deal with CRA on your behalf
Make no mistake, the CRA is counting on you to pay up.
It is recommended to leave ALL communication with CRA to the professional. Unfortunately, accountants and or Tax Lawyers can be expensive.
Fighting the CRA – and their near endless resources – can quickly turn into a long, drawn-out process.
The back and forth between you, your accountant, and the auditor adds up fast. That’s where Tax Investigation Insurance (TII) comes in.
Your accountant bills us. You get to defend yourself, clear your name, and keep your after-tax dollars in your pocket. It’s a win-win.
Coverage Quick Info:
- Up to $50,000 in professional fees (your accountant or a tax lawyer) to defend your review, desk audit, investigation, or appeal a judgment for taxes owed.
- Your family trust and estate are automatically covered too
VIP, at this time the ONLY way to purchase Personal Tax is to add it to your business policy.
BUT for those of you that are self-employed, have rental or investment income (all declared and filed through a Canadian T1 return) you must have a business policy.
The defined term for Insured under the Business Tax states:
“Insured” means the corporation, registered general partnership or sole proprietor named as Insured in the Declarations and who is insured under this Policy.
In the Personal Tax product, the following exclusion states:
- any Claim relating to the tax affairs of a corporation or if You are carrying on business, involved in a business partnership, or otherwise self-employed;