CRA reviews of ‘professional fees’ paid by corporations

1

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

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

Contact info

604.859.4618
%d bloggers like this: