HST Audit of Orangeville, Ontario

An HST Audit of a municipality is quite uncommon but certainly does occur.  The Municipality of Orangeville in Ontario was recently selected by the CRA for an HST rebate audit.

Orangeville’s communication manager noted that :

“The CRA’s risk-assessment system selects files to audit based on a number of conditions such as the potential for errors in returns, or indications of non-compliance with tax obligations,”.

While this may be true, the CRA often selects file based on certain HST audit triggers as well.  It could be a mismatch of income to HST to remit; figures that are uncommon for similar businesses or industries, or another HST trigger is where there is larger input tax credit claims in general and/or compared to previous years.

As was quoted:

“Sometimes you could have a really huge project or a contract going on,” Selby explained. “That could make your HST rebate for that quarter much higher than it normally is. It would just require an explanation to the CRA.”

Speak with you HST advisor if you have questions or need help with an HST audit.