2014 Update: GST/HST CRA Audit Issues
We recently attended the 34th Annual Commodity Tax Symposium 2014 in Ottawa Ontario, whereby a number of CRA representatives discussed the current ‘hot topics’ when it comes to audits and other CRA activity. Below is a summary of the issues that are currently at the forefront:
- Denied ITC claims due to the wrong entity claiming
- Disbursement incurred (or not) as an agent
- Incomplete documentation
- Inco terms and place of supply rules not being applied correctly.
- 167 elections and the applicability of the GST44 Election Concerning the Acquisition of a Business or Part of a Business
- General Partners and the reporting of the GST/HST for the partnership
- Bare trustees and joint venture elections
- Non-residents making supplies in Canada
As you will notice from our prior blog posting on this topic, the majority of the issues are the same. Although the issues may look simple on the surface, this shows that businesses continue to make errors on these common issues. Based on our experience, we have developed a GST/HST questionnaire that is meant to help businesses identify risk areas in their commodity tax. It is our first step in helping your business properly structure your GST/HST reporting. If you believe your company has some exposure in any of these areas, or other areas of the GST/HST, please contact your DJB professional to discuss your commodity tax issues further.