Article 8. Audit Process

  1. Where a Taxpayer is requested to provide information in the course of an enquiry or audit, the Taxpayer shall cooperate in providing the information on a timely basis and shall provide complete information and answer questions of fact truthfully and fully.
  2. A Taxpayer shall be required to provide only factual information and not interpretations of Tax law.
  3. Before commencing an audit or enquiry, a Tax Officer shall notify the Taxpayer of the scope of the audit or enquiry, the issues which are being considered and the implications of the issues, and advise the Taxpayer of the rights which the Taxpayer has under legislation and under this Charter.
  4. A Tax Officer in the course of an audit or enquiry shall request from a Taxpayer only information which is reasonably necessary and applicable to the matters under review.
  5. Punitive provisions including penalty provisions should not be used as a negotiating tactic by a Tax Officer.
  6. Where questions are asked by a Tax Officer, the purpose of the questions should be clearly disclosed so that a Taxpayer is not asked questions which are misleading, intended to be deceptive or whose answers may be self-incriminating without the Taxpayer being aware.  The Taxpayer may refuse to answer such questions, and shall not be required to disclose confidential communications between the Taxpayer and his or her Tax Advisors.
  7. In the course of an audit or enquiry, a Taxpayer may request that all communication be in writing and that a Tax Advisor be present at meetings and other proceedings.
  8. A Tax Officer shall summarize the results of the audit or enquiry and provide a reasonable length of time for the Taxpayer or a Tax Advisor to respond.
  9. A Tax assessment must be justified by the facts and circumstances, and have a basis in law.
  10. Where in the course of an audit or enquiry a Tax Officer considers the application of a penalty, this shall be disclosed when such person becomes aware of the circumstances which might justify the penalty.
  11. A Taxpayer shall treat Tax Officers with respect and courtesy and shall cooperate with them in pursuance of their duties.