We solve serious CRA tax problems

Involved in a CRA GST / HST Audit?

When facing a GST/HST audit, you don’t need a tax lawyer. At Faris CPA, we’ve been providing GST/HST audit assistance and saving taxpayers unnecessary legal fees for over a decade.

Use the contact form or call us today at 1-844-340-5771.

 

GET YOUR TAX PROBLEMS SOLVED BY FARIS & TEAM

CRA GST HST Audits

What is GST & HST?

The GST/HST is a value added tax that applies to the additional value created by a business in the supply of a good or service.  GST stands for “Goods and Services Tax”, and is the tax collected by the Federal Government. In some cases, Provinces chose to opt into the value added tax system and harmonize their sales tax with the GST, giving rise to the HST or “Harmonized Sales Tax”.  The HST reduced compliance burdens and tax costs for business in the provinces that have it.  The starting point, if you sell any good or service, is that GST/HST applies and has to be charged, collected, and remitted unless you find a specific exemption that applies.

The tax is collected on behalf of the Government of Canada and the funds collected by your business are held in trust for the Government of Canada.  Depending on a business’s reporting period for GST/HST, the business is required to report the amount of GST/HST collected or collectable in that period as well as the Input Tax Credits (ITCs) deductible from the GST/HST collected. ITCs are the amounts of GST/HST charged to you and paid by you to suppliers of goods and services you use or consume in the process of providing your business’s own goods and services.  The difference between GST/HST collected and ITCs deductible, is the Net Tax.  Where the total amount of the GST/HST charged is more than the amount of ITCs you can claim for a period, in other words where the Net Tax is positive, you have to remit the Net Tax To the Government of Canada.  However, where the amount of GST/HST you charged is less than the ITCs deductible, you are entitled to and can claim a refund from the government. Learn more about the CRA audit process

Facing a CRA GST/HST Audit?
Get Professional Help to Navigate It Successfully

VOLUNTARY DISCLOSURE EXPERTS IN TORONTO

Do I Need to Register for GST/HST?

You are required to register your business for GST/HST if your business revenues from taxable supplies exceed the small supplier threshold ($30,000 in a quarter not taking into account any expenses). If you are a small supplier, you may still wish to voluntarily register for GST/HST so you can claim ITCs on purchases for your business.  Not every business that exceeds the small supplier threshold needs to register for GST/HST with the Canada Revenue Agency.  If your business ONLY provides exempt supplies (e.g. Child Care Services, Long tern residential rentals, most educational services including music lessons, and others) you do not have to collect GST/HST and are also not entitled to claim ITCs.  Your tax expert can help you determine which of your goods and services are taxable, exempt, or zero-rated, and whether or not you need to register for GST/HST.  You register for a GST/HST account by using your Business Number (BN) with the Canada Revenue Agency by filling out a Form RC1 “Request for a business number and certain program accounts”. 

As with any self-reporting system, the Government of Canada relies on the honesty and accuracy of business owners in administering this tax.  Your reporting period is the period that your business uses to file your GST/HST returns.  If you provide annual taxable supplies of less than $1,500,000 then you are assigned an annual reporting period, where the value of your taxable supplies is between $1,500,000 and $6,000,000, you are assigned a quarterly reporting period, and where your taxable supplies exceed $6,000,000, you are assigned a monthly reporting period.  The government, through the Canada Revenue Agency (CRA), conducts audits to make sure that business owners are reporting the GST/HST collected or collectible accurately, and are not claiming ITCs they are not entitled to. In other words, the CRA ensures that you are meeting your reporting requirements for each period.  

CRA GST & HST Audits

Audits can be very demanding, both on your business and personal resources as well as emotionally and mentally.  The CRA does not publish the reasons they decide to audit or not audit a business, however, experience has shown that there are a number of audit triggers for GST/HST audits.  These triggers can include:

  •   Claiming a GST/HST refund;
  •   Having losses for a number of quarters;
  •   Claiming ITCs that exceed the industry average;
  •   Reporting revenues that fall well below the industry average;
  •   Being in high-risk industries (exports, temporary employment services, cash-heavy industries); and
  •   Reporting discrepancies across various returns.

Audits may also be consequential, meaning that if the CRA’s audit of a client or supplier of yours flags your business as a potential risk for tax evasion, the CRA may choose to also audit your business.

It’s always best to assume that your business is going to be audited and be prepared to defend your position.  The best defence against an audit is to make sure you keep good records of sales and expenses.  When it comes to sales records, make sure that the record contains enough information about the good and service provided, the date, the customer contact information, and any information about coupons, discounts, or promotions applicable.  When it comes to invoices for goods and services you use or consume in your own business, make sure your supplier gives you an invoice that has the following information: 

  •   The legal name and address of your supplier;
  •   Details about the nature of the good and service supplied;
  •   The breakdown of the cost of the goods or services, the GST/HST applies, and the total paid;
  •   A date for the invoice (supply date and due date); and
  •   The GST/HST number of the supplier (you have to check to make sure that they are in good standing with the CRA).

You should also hold on to copies of any GST/HST elections you make as well as copies of past filings and payment confirmations.  

Hire an Experienced CPA for a CRA GST/HST Audit

Given that GST/HST is a trust debt, you are personally (as a sole proprietor or partner), and you as director (where the business is run as a corporation), are, in most cases, liable for the tax debt of the business.  Hiring a CPA will help ensure that you charge and collect the right amount of tax on the right goods and services, that you deal with your ITCs claimed properly, and that you are meeting your filing requirements so as to avoid audits, obtain favourable results in an audit, and avoid paying penalties and interest.

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“Sam Faris reduced the significant unreported income based on net worth audit to be nil. Sam’s approach in fighting these types of complex audits is unique and sophisticated. He found countless mistakes made by the auditor, which were rectified when Sam appealed the audit decision. Instead of owning a significant amount of taxes, Sam reduced it to zero. I highly recommend hiring Sam for this type of audit and any CRA problem.”

Case Study

A new client had a difficult CRA audit that disallowed an HST refund valued at almost one million dollars. The CRA audit revealed that his previous accountant had made significant errors which resulted in the disallowing of the HST refund valued at approximately 1 million dollars.

He was referred to our firm by another client of ours.

We performed an intensive review of the proposal letter from the CRA along with the income tax act. We were convinced that the case would be won if the records were corrected and a new argument was submitted as a replace to the proposal letter from the CRA.

The CRA auditor denied the response. Our firm filed a Notice of Objection to the CRA.

The Notice of Objection was successful, and our client was able to recover, not only the original refund, but there were additional amounts that the previous accounted had missed that were awarded to our client as well.

Other Services

Faris CPA is proud to offer a wide variety of tax-related services, not limited to:

FAQS

What is an HST audit?

An HST audit is carried out by the CRA on businesses who have to pay the tax. During the process, the business owner is asked to provide the auditor with their HST elections as well as receipts and other purchase and sales documentation. It is important to keep these documents in good order. Trying to sort them out retrospectively is a surprisingly time-consuming and difficult process.

How do I prepare for a GST audit?

Businesses can prepare for a GST audit by making sure that all of their accounts and financial records are always in good order. That means making sure that the details of each sale are recorded in full. As well as ensuring that suppliers provide you with proper invoices. Armed with this information, a business will be able to prove to the auditor that they have complied fully with the rules surrounding the collection of, and payment of, GST.

What is a GST audit?

A GST audit is when an auditor from the CRA examines a business´ financial records. In order to check that they have paid the correct amount of Goods and Services Tax. To facilitate this audit, the business is asked to provide documentation, mostly invoices, to support what they declared on their returns. The invoices need to contain a pre-prescribed list of details for the auditor to accept them as proof that the correct level of GST has been paid.

pro-tip

Pro Tip

ACCESSING THE SMALL BUSINESS DEDUCTION IN YOUR BUSINESS

The Small Business Deduction gives businesses a tax deduction on the first $500,000 of income. This saves an eligible corporation around up to $50,000 in income taxes. There are a number of conditions that have to be met to be eligible for this deduction.

Essam Alftayh
Essam Alftayh
1717274326
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D Schrager
D Schrager
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Before hiring Faris CPA, I shopped around and I hired a CPA firm who offered significantly cheaper fee than Faris CPA. I must admit that this was a mistake. That firm promised the moon and they did not deliver. I learned by accident that the firm outsourced my file to a firm in India. I was very upset as I did not consent to have my returns done in India. I lost trust in the firm as the firm mislead me by making me believe that my file is being handled properly and efficiently by CPAs who are knowledgeable in Canadian taxes. I had to fire them immediately and hired Faris CPA. Sam Faris and his team dealt with my case efficiently and on timely basis. As a result, my many years of outstanding personal and corporate tax returns have been filed as promised. The taxes that I ended up owing are way less than what I expected. Sam Faris and his team performed a good tax planning strategy which saved me taxes. Faris CPA fee is very reasonable considering the quality of work that has been delivered and the tax saving that was achieved.Don’t hire a firm who provides cheaper fee as you will end up paying twice. In my situation, I ended up paying to a firm who outsourced my file to India and I came back and hired Faris to complete the job properly. Save your money, time and emotions and hire Faris CPA and they will get the job done to your satisfaction.
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Kate Miller
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Thanks Sam for your help with our CRA issues. You were very easy to contact and deal with and did what was needed very quickly. Thanks so much.
It was my pleasure to work with Sam Faris closely to resolve my tax issue with the CRA. Sam was efficient and resolved it to my satisfaction. Unlike other professionals that I dealt with regarding the same tax matter, whatever he promised, he delivered with the least time and with a reasonable fee. Thanks Sam for all your help.
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Rob Miller
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Rasha Makhoul
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Faris CPA helped me to navigate a very difficult tax matter. I would recommend the firm to anyone who needs tax experts with high business standards.
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Luba A
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Lila Saba
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Shadi Hakawaty
Shadi Hakawaty
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I was referred to Mr Faris by a friend of mine who happened to be his client for more than 10 years .I was struggling with the CRA regarding HST audit .CRA claimed that I owe significant amount of hst .Mr Faris was able to preform a detailed analysis which is backed up with previous court cases .as a result mr FARIS was able to convince CRA that the property was not subject to hst and the case was closed with zero hst owing.Thank you mr FARIS for all your hard work 🙏
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Rosa hanna
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Sam Faris helped me and helped my family to deal with a very complex audit with the CRA. His performance exceeded expectations and his fee is reasonable.
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Kevin Eatz
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Was very professional and fast with helping me file taxes that I have missed over the years. Highly recommend :)
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Ria Frith
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Excellent service! Sam helped make a stressful, complicated situation much easier to deal with, showing great patience and compassion. I'm very grateful.
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farshid tayyeb
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Sam and his team helped me with filing my complicated corporate tax. He is very informative, and knowledgable and most importantly always available to answer your questions and concerns. He is very detailed and spent a lot of time preparing my tax file and fixing my previous accountant’s mistakes. I should also mention that his fee was very fair. Thank you so much Sam!
Vero Land
Vero Land
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Had a meeting with Sam regarding my tax matter with the CRA. Sam was informative and provided an excellent advice to handle the situation.
David Kline
David Kline
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CRA audited me based on net worth audit. This audit lasted almost 2 years. I suffered emotionally and financially as a result. Bringing Sam and his team into the picture was the best decision that I have ever made. Sam followed a very unique strategy which led to dropping the taxes to my satisfaction. Thanks Sam for all your hard work.
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Madison Wortman
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Sam is the man to handle any CRA dispute. Very happy with his services and the results that he achieved for me.
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Gwen Meador
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Sam Faris helped me with the HST audit which involved building a new houses. CRA proposed to assess the houses that I built higher than it should be. Sam approach was convincing and knock down the assessment significantly. Thanks to Sam that I did not have to file objection and the issue was settled at the audit stage with the least cost.
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Rafa Vargas
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Joseph Qassis
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Extremely helpful and high work ethics. Thank you for all your help Sam for solving my tax issues.
NewLeaf Dental
NewLeaf Dental
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I was referred to Sam Faris by a tax lawyer in the city. Sam helped me with a very complicated tax audit by the CRA. Results exceeded expectations and now I can focused more in my business as Sam is defending me with the CRA problems.
John S
John S
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Rey459
Rey459
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Sam helped me with a very difficult tax issue which involved voluntary disclosure. He submitted a perfect package where CRA did not bother to ask any question. My package was approved from the first time with no issue at all. I must admit that after shopping around, Sam’s fee was the most reasonable fee among all the professionals including 2 tax law firms. Thank you Sam for all your hard work.
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A trusted tax firm who handled my complicated tax problems perfectly with the least cost. Sam and his team exceeded expectation. Highly recommend.
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Waseem Khoury
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Luckily I was referred to Sam and his team by a friend of mine. After wasting time and money with a tax lawyer, finding Sam was a big relief. He was able to resolve my tax issue with CRA on timely basis and with the least cost. Many thanks Sam.
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maria martins
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Super professional with high work and ethics standards. Highly recommend Sam and his team. Thanks for the hard work.
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Seth Woodard
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MARIA FUDA
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Without doubts, the team at Faris CPA is the best out there to dispute CRA decisions. They are focused on details and are second to none. Their fee is fair and more importantly, they are honest, reliable and meeting their promises. Don't bother to hire other professionals and of course no need for tax lawyers who charge you excessive legal fees. Hire Sam and his team and they can get the job perfectly done and on a timely basis with the least cost. Very grateful to Sam for all the hard work on my file. I am lucky to know you and because of you, I have no concerns whatsoever if CRA tries to attack me and attack my business in the future.Thank you Sam.Maria Fuda,Litewave Communications
Paulina R
Paulina R
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jonathan sousa
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Scott Dalziel
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David Lonergan
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Sam Faris and his team are EXPERTS in fighting the CRA / Canada Revenue Agency. I cannot say enough good things! Save your money and don’t hire a tax lawyer. They can do it ALL and save you the legal fees. Sam and Team will get you the best outcome for a very reasonable fee. I HIGHLY RECOMMEND.
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Ryan Butao
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Ana Santos
Ana Santos
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Amazing work and great exceptional service.
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Edden Y
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Sam Faris is highly professional and keep his promises. He promised me a fair resolution to my tax issue and he met the promise. His fee is very reasonable too.
Steve Hayward
Steve Hayward
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Sam helped me out with a complicated (to me) tax issue I had. He was super responsive and walked me through everything. I had a follow up question a few months later and he responded within an hour. Highly recommended.
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Marcin J
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Very professional support for international taxes.
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Gol Zar
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Sam is extremely knowledgeable with tax issues with CRA. He provided me the best advice which saved me from troubles. His fee is reasonable too. Thank you Sam and I will recommend you to my people.
peter lozier
peter lozier
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I had the absolute pleasure of working with Sam Faris and I can't express enough how thrilled I am with the service I received. From start to finish, the experience was seamless and efficient.Sam is a true expert in Canadian tax regulations. he demonstrated an impressive knowledge of the Canadian tax code, which immediately put my mind at ease. He was able to answer all my questions and provide valuable insights that helped immensely with Canadian tax laws.What truly sets Sam apart is their incredible speed and attention to detail. I submitted my tax documents, and he worked diligently to complete my return in record time, all while ensuring it complied with the Canadian tax requirements. I was amazed at how swiftly they turned around my taxes without sacrificing accuracy. It's evident that he has a deep understanding of the Canadian tax system and can navigate it with ease.Throughout the entire process, Sam was not only professional but also incredibly personable. They made what is typically a stressful time of year into a stress-free experience. Their friendly demeanor and willingness to explain complex Canadian tax concepts in simple terms made me feel valued as a client.
Nadine Mortada
Nadine Mortada
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I received the best tax advice for my international tax issue. Thank you Sam for all your help.
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Shams Hirji
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Haifa Rizk
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Sam Faris has provided me with he best solution to dispute CRA audit. I highly recommend Sam for any tax problem.
Ercan Coşkun
Ercan Coşkun
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Sam is the right guy to fight CRA. Sam helped me to resolve a serious issue with CRA. He went above and beyond and got me the best results. 10 stars
Sam helped me with the voluntary disclosure program to file all my outstanding tax returns. He saved me taxes and penalties and his fee is very reasonable. I highly recommend him to any problems with CRA.
Jack CHaci
Jack CHaci
1692485321
Got a great help from Sam and his team regarding very complex tax matters with CRA. Thank you for the wonderful job.
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