audit (3)

Updates to CERS, CEWS & CEBA

PEAK Disclosure - Click to Learn

"While the Government of Canada has focused its resources on creating and implementing relief programs to support Canadian businesses impacted by the COVID-19 pandemic, it is inevitable that the government will soon shift its focus to ensuring that applicants were eligible for the relief that they claimed and received. Presently, the CRA is working on creating a post-payment tax audit program that will focus on CEWS applications made between March 15th, 2020 and July 4th, 2020. The purpose of the post-payment tax audit program is for the CRA to identify the various measures of non-compliance with the CEWS legislation.

Given the ongoing concerns associated with the CEWS program, Canadian businesses and organizations should bear in mind that any CRA tax audit, including an audit into a CEWS application, can result in the CRA requesting access to details, including corporate and financial records, that may not be relevant to the CEWS claim as part of a broader tax audit. As such, businesses applying for any of the above-mentioned relief programs should review the relevant eligibility criteria, posted on CRA's website, prior to submitting their claim. Further, businesses and organizations that notice an error in their relief application or in any payment received (as a result of a claim made to any of the above-mentioned benefits) should contact the CRA immediately to address the error and to confirm their benefit eligibility."

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