Most businesses run their operations with due diligence and pay their taxes and file the statutory reports on compliance. But the government authorities, in particular, the taxation departments, like the Canadian Revenue Agency, are bound to dig deeper into the tax returns submitted. Even if you have done your bit perfectly, and you are confident that there are no errors, the tax audit teams are mandated to look for even the slightest of mistakes. This could put you and your business to a lot of inconvenience and avoidable embarrassment. The only way you can get out of this possible situation is to buy yourself investigation insurance. So how does this insurance work and how can you benefit from one?
Tax Investigation Might be Unavoidable but the Insurance Helps
When you study the small and medium-sized businesses in Canada, it might be revealed that rarely do companies escape the tax audit by the CRA. And the costs involved in engaging an accountant to assist during the process of scrutiny could amount to a large sum. So why buy trouble, especially when there is a better and safer alternative? The way this works is you could invest in an insurance shield by paying the premium as you would do for any other policy. If your tax returns were to be taken up for review, you will have to seek the services of professionals to first help with handling the laborious work involved in going back over all the records and vouchers to establish that your returns are indeed tax compliant, and you don’t owe any Cent more. And if the authorities still go ahead and slap a demand on you, you will also need to hire legal assistance as well. All these don’t come cheap. The investigation insuranceshield gives you the cushion you will need to pay up all these professional fees and more.
Serving All Categories of Tax Payers and the Professionals Too
Though the discussion above has focused more on the business category alone, the investigation insurance product is designed to help individuals as tax payers in Canada as well. There could be many instances of individuals also facing similar tax review or tax audit issues.