The Canada Revenue Agency frequently carries out audits or investigations into the financial affairs of businesses in order to ensure maximum compliance. Once the audit is done, your businesses may occasionally be handed a notice for reassessment of your taxes which can be quite costly, particularly for many small business. That is why businesses must insure the costs associated with tax audits in order to ensure that it does not plug a huge hole into their finances. Tax investigation insurance can offer you great relief and help cater for these costs should your business finds itself in this position.
The main purpose of the tax investigation insurance is to help you with the costs associated with the CRA audits which might find you financially unprepared. At whatever time, the CRA may get in touch with you for auditing and it is always important to be fully prepared by taking up insurance for this purpose.
The CRA carries out professional auditing in order to ensure that your business is fully complying with all the Canadian taxes. They want to make sure that you are paying all the taxes which are due to you. They also want to make sure that you have declared the right properties and divulged information on all of your assets. Before the CRA authorities come to your business premises, there is a lot of information that you will need to prepare.
The CRA will give you a call in advance and will also send you information, in writing, on the procedure that will be involved in the auditing. This allows you to prepare the right documentation for auditing purposes. This will offer your accountants sufficient time to put in the all the reports in place before the accountants arrive at your premises.
The main area of investigation will be determining your asset declarations are accurate and also evaluating your capacity to meet your tax obligations. Thanks to the volume of documentation and preparations to be made, you will need an accountant to put your paperwork and reports in order and there will be lots of costs involved in making this happen. You can cater for these costs by taking up tax investigation insurance. This way, any burst in expenses will have been catered for and your business does not have to dig deeper into your emergency funds in order to finance the auditing process.
There are tax investigation insurance agencies offering various forms of insurance coverage options for your auditing needs. You can place a call in order to discuss some of the options available for you.
The investigation insurance will cover various fees during the process. The coverage will cater for the professional fees that accountants incur when assisting their clients with tax compliance during auditing, official investigations, enquiries from the CRA or review of the lodged filings with the CRA.
Accountants that use the insurance option will be able to more confidently work in giving their customers tailored solutions during the auditing process. If you are worried about incurring substantial costs during the auditing process, then this is the option for you. Check out https://www.accountancyinsurance.ca/index.php/products-services for more information.