Audit process for the speculation and vacancy tax
Anyone who has to declare for the speculation and vacancy tax may be audited.
Audits are routinely conducted to ensure:
- Exemptions and tax credits have been claimed correctly
- Taxes have been paid correctly
If your speculation and vacancy tax declarations are selected for an audit, you will be assigned to an analyst who will advise you what documentation is required.
If you have questions about your audit case, contact the analyst assigned to you, as the general inquiries agent will be unable to assist with any questions about your audit.
When requested, you will be required to provide us with all information necessary. The Speculation and Vacancy Tax Act provides us with the authority to demand information, production of records, or written statements. You will receive a letter specifying the amount of time you have to respond.
Once an audit review on your account has begun, you will be unable to make changes to your declaration yourself. Contact us right away if you need to make any changes.
If we do not receive the requested information within the deadline provided and cannot confirm your eligibility for the exemption(s) you claimed, we'll issue a final letter summarizing our findings, a Notice of Assessment and a Statement of Account showing your outstanding balance, including any applicable interest or penalties.
During a typical audit, you can expect us to:
- Review your records
- Ask you for information about something that may be missing from your declaration
- Discuss issues of interpretation that may arise from the audit
- Work with you to ensure the audit is completed in a timely manner
- Work with you to resolve any concerns you have as quickly as possible
- Safeguard your records without compromise
You should keep all supporting documents for six years after you submit your declaration.
When the audit is complete, we will:
- Review and explain the results
- Notify you if more tax is owed
- Notify you if you are entitled to a refund
- Make you aware of your options if you disagree with the results
If the audit determines you owe more tax, we will send you a Notice of Assessment that shows the balance owing. If you have questions about the notice or how it was determined, contact the analyst assigned to your case.
If you believe the tax was applied incorrectly in your circumstance, you may be able to appeal to the minister.
This information is provided for your convenience and guidance and is not a replacement for the legislation.