As a tax payer, you could possibly be subjected to a tax investigation at any point in your business operation or career. This does not mean you are guilty of fraud or anything serious; not when you know that you have done nothing to violate the law. There are just times when you would be contacted by Canada Revenue Agency (CRA) when they have questions about some items in your filed return or when they need to clarify some issues. In this case, you can deal with the process on your own or you can contact professional audit insurance brokers to help you in process.
If you have not been subjected to tax audit yet, one of the important things that you should know is that, it can incur expenses such as professional fees for the accountants doing the review. Take note that when you are contacted by CRA to open your books for checking, you would be the one to cover the professional fees and other expenses which may be incurred during the process, not to mention the financial loss during the investigation. If you are not prepared for this event financially, it can come to you as a surprise. The professional fee alone for the accountant can amount to thousands of dollars especially if it takes several days to check on your books and documents.
This is one of the reasons why having audit insurance brokers would be a great relief financially in case you would be visited by representatives from CRA and other government representatives. The subjects of tax review and investigations are picked randomly by the Canadian government, unless there is specific legal basis to check on your documents. Whatever, the case may be, you can do nothing but participate on the process and it would be good to have a tax audit insurance to protect you from unexpected costs. Tax audit insurance by audit insurance brokers will also give you that peace of mind that you will have nothing to worry about financially because you or your business establishment are covered.