The government of Saskatchewan may occasionally decide to audit your business or your clients. Typically, these audits focus on sales tax collection and remittance, but in some cases, businesses and individuals may face an audit related to sales tax due on items they purchased.
Generally, after an audit in Saskatchewan, the Collections and Enforcement Section issues an assessment of the tax owed. Advise your client to pay the portion of the tax it agrees is due. That helps to ensure your client avoids penalties and interest on those amounts. To be on the safe side, it may want to pay the entire assessed amount. If the appeal is successful, your client can apply for a refund of its payment. After making the payment, it should request an appeal with the Board of Revenue Commissioners.
An appeal must be requested within 30 days after receiving the assessment notice. After receiving the request for an appeal, the board schedules a hearing. Ideally, you should help your client through that process. If you are a bookkeeper for a business, you may want to hire a tax resolution specialist or a tax attorney to help you through the appeals hearing. Have documents and receipts ready so you can argue why the assessment is incorrect. If you and your client don’t agree with the decision from the Board of Revenue Commissioners, you can appeal again to the Court of the Queen’s Bench.
Whether you do accounting for a single business or have multiple clients, you need to be prepared for audits, and should understand the basics of the appeals process. An audit from the Saskatchewan government is not the same as an audit from the Canada Revenue Agency. Ideally, you want to be prepared for both.