The purpose of an Ontario Ministry of Finance audit is to ensure taxpayers fulfill their tax obligations in accordance with the laws administered by the ministry, and to inform and educate taxpayers.
How does the ministry choose who to audit?
You may be chosen for an audit based on a number of reasons, including random and risk-based selection. Audits may also be the result of a referral or cross-reference from another audit or another jurisdiction.
Where do audits take place?
Some audits are conducted from ministry premises (desk audits), while others involve on-site interviews and an examination of financial records and accounts (field audits).
Where there is more than one statute audit being scheduled, the taxpayer can request that these audits be coordinated, to help reduce the time and interruption to the taxpayer's business.
During an audit, the auditor will answer your related questions, explain requirements under the various provincial tax laws, and address any issues that require attention in addition to verifying that tax has been properly calculated and remitted.