First Audit Program for GST/HST

The focus of this type of Canada Revenue Agency (CRA) audit is on new businesses and the workload is generated by the first GST/HST return filed with a refund balance. Generally, the start up costs incurred by the business results in a GST/HST refund claim. The purpose of these audits is to establish early contact with the owners and managers of the new business.

The role of the CRA auditor is to:

• Ensure the existence of a business;

• Ensure the taxpayer is aware of their rights and obligations;

• Determine the adequacy of the books and records to support the GST/HST payable, the input tax credits, and in general, all revenue and expenses;

• Make recommendations where the books and records are found to be inadequate; and

• Provide answers to taxpayer enquiries.