January 31, 2015 by staceycountsbeans
Recently, CRA has issued review letters to a few of our corporate clients.
Under scrutiny is the tax year 2011 (the latest year that CRA can review before it becomes statute barred), requesting paper backup for the expense line ‘professional fees’.
Having received identical letters within the same day, we can assume that this is a specific campaign by CRA.
It is likely that the service providers expensed under the ‘professional fees’ category will be reviewed in turn, in compliance areas that could include:
- whether the supplier is claiming the fee as income at their end
- whether they are charging and remitting the appropriate sales taxes
- whether they might actually be employees of the ‘client’ being charged