PST remitance audit anyone had one done??
 

Just like the topic says.

We are having one done on us right now(no problems we have a a bookkeeper and accountant and we pay on time all the time) and what they are trying to do is establish an average mark-up on our sales, which is total bullshit as we dont sell everything at a specific mark-up.

So my ??? is, if you have had one done how did they arrive at what you should have collected in tax??

Thanks for any input


Cheers

Chris

They will go through your books, account deposits, sales systematically compare company income with deposits. so if you sold a used personal product through the store and did not charge tax they will consider that taxable.

So basically if you sold X amount of product it should match up with deposits and if it does not match up with deposits they give you a bill for the tax for un-recorded sales.

So hope you don't have deposits in the accounts they are auditing that cannot be accounted for.

And beleive me when I say they always find "something" because someone has to pay their wage and make that division of the government profitable.

I had one back in 2001 and it was a pleasant experience actually

Just make sure you have all the information they ask for ready for them

I have always been careful about having receipts/invoices/cheques for everything

My audit only lasted 3 hours... the lady told me not to bother with invoices for anything under $5 (I still do).

It is routine for any small business within 5 years. Just show them everything

Well were getting ****ed by them

They don't care about any of our numbers, they have taken our purchaces multiplied them by an average industry markup of 2.01 %

So there saying we buy a double din at $1000 and sell it for $2001 dollars which all you know is not right.

So for 2004 for example we have sales of $250,000 we calculated our markup to like 1.30% but there saying 2.01% so there literally saying we have sales of $500 000 for that same year so they want 7% of the unrecorded $250,000 which is so crazy!!

We have paper work that shows everything and everythign adds up but apparently that means nothing?


So on that double din sale there saying we write an invoice for $1300 + tax and pocket the $700 of unrecorded sales WOW I WISH

WTF!!!

So, how did it work out?

I'm assuming reallt well. Checked his last few posts.. Selling the stores demo boards. I Can only assume the worst.