Audit Shield

Zenbooks is letting our tax clients know of this service because many do not want to pay a bill if there is an audit of their financial information by CRA. Zenbooks offers you the opportunity to sign up directly with Audit Shield for this service AT COST. We do not make any compensation, fee, or remuneration from any of our clients signing up for Audit Shield. We just honestly think some of our clients would value the predictability of compliance and accounting fees.

What is Audit Shield?

Offered by Accountancy Insurance (AI), Audit Shield pays our professional fees in a case where CRA decides to start audits, enquiries, investigations and reviews of a filed return.

With increased focus on tax compliance by the CRA and other government revenue agencies, the risk of being audited is higher than ever. It is a common misconception that only non-compliant filings are selected to be audited or reviewed. In a proactive effort to combat the rising costs relating to compliance, we are pleased to offer our Audit Shield Fee Waiver Service. Clients who participate in our service will have our professional fees waived for responding to government audits, enquiries, investigations or reviews.

Benefits of the Audit Shield Fee Waiver Service:

  • Relief: If you are subject to an audit, enquiry, investigation or review that is directly related to your filed returns, the associated professional fees (up to a maximum amount) are covered.
  • Retroactive protection: Previously filed returns are protected automatically, regardless of who prepared them.
  • You have a choice: The offering is optional, so there is no obligation to participate.

Important Information about the Audit Shield Fee Waiver Service:

  • To enable us to make this service available to you, Zenbooks Tax Services Professional Corporation holds a Tax Audit Insurance Policy which is underwritten by certain underwriters at Lloyd’s. The terms and conditions of our Tax Audit Insurance Policy mirror the Audit Shield Fee Waiver Service.
  • You can choose to benefit from our Audit Shield Fee Waiver Service if we are filing your income tax returns. You need to be a client of our Tax Practice to be able to sign up for this service.
  • Participation in this service is not automatic. Protection will commence on the next business day after we have received your payment and expires the following 31st of March.

What does Audit Shield cover?

In relation to filed returns, the following is covered*:

  • Business Audits
  • Capital Gains Tax
  • SR&ED (Financial only)
  • Corporate Tax
  • Employment Compliance Audits
  • GST/HST/PST

(Pre- and Post-Assessment Reviews)

  • Payroll Audits (T4)
  • Personal Tax

(Post Assessment T1 only)

– Processing Review Program

– Matching Program

– Special Assessment Program

  • Plus much more

 

Q: Why are you offering this product to me now?

A: The CRA is dramatically increasing the amount of audit activity it is undertaking, especially with regards to processing reviews and limited reviews. In fact, over the next 5 years an additional $524 million has been allocated for this purpose.

Anyone can be selected for review by the CRA, irrespective of whether your returns are filed accurately and on time. The CRA is now using data matching and powerful algorithms to select persons of interest. These could be based around an industry, a category of expense or income, or be totally random in nature. 

The CRA has considerable resources to extensively delve into your affairs, which can be very stressful.

 

Q: What does the Audit Shield Fee Waiver Service cover?

A: It covers the professional fees you would otherwise have to incur should you be subject to an investigation, audit, enquiry or review by the CRA. The scope is very comprehensive – covering T1 slip requests, GST reviews, payroll audits, corporate reviews, and much more. It covers current returns and previously filed ones too (no matter who prepared the return).

 

Q: Do I need to participate?

A: The Audit Shield Fee Waiver Service is an opt-in service, so there is no obligation to sign up. We simply offer it to you as an optional service for your consideration. Should you choose not to participate and you receive a request from the CRA, we will continue to represent you and provide complete support; however, you will be subject to additional professional costs.

 

Q: Do you think I need it?

A: We hope that you are never targeted by the CRA, but we cannot predict who will be chosen for an investigation, audit, enquiry or review. If you would take comfort from knowing our costs would be covered in case you are scrutinized, then this is a service may be ideal.

 

Revenue Category

Limit

AuditShield Fee

T1 Only (inc. shares & rental properties)

$10,000

$155

T1 Only (inc. Partner)

$10,000

$180

Sole Proprietor/Partnership/Non-Trading Trust/Non-Business Family Groups <$500k

$10,000

$220

Business Group <$500k revenue

$10,000

$270

Business Group/T1 $500k – $1m revenue

$10,000

$355

Business Group/T1 $1m – $3m revenue

$20,000

$680

Business Group/T1 $3m – $6m revenue

$20,000

$950

Eric Saumure, CPA, CA, Principal

Eric Saumure, CPA, CA, Principal

Eric is a recognized Chartered Accountant (CA) and Chartered Professional Accountant (CPA) in the province of Ontario.
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