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There’s Cash in Your Walls

August 22, 2020 aadolphAudits

Covid Opportunities

There’s Cash in Your Walls

Back in classic TV days there was an ad on the local station featuring legendary DJ Red Robinson, where he would say ”there’s money in your walls”. Then through the special effects that existed in 1982, he would reach into the wall of someone’s house, and pull out a gigantic wad of money.

The product then was the reverse mortgage loan, where people who own their home could get some cash by taking a loan out against the value of their home.

What Does This Have To Do with GST?

If you are a company that has been around for a few years, there’s probably money in your walls. Let me explain.

When it comes to GST, most honest companies put a lot of effort into making sure they are collecting GST as they should be. They know that a CRA GST auditor would check for this.

Most business people also know the GST they pay on their business inputs can be claimed back as an input tax credit.

The Situation

Businesses rarely claim all the GST input tax credits that they can and often overpay PST. There are many reasons this happens:

  • people don’t have a full understanding of how GST and PST works
  • documents from certain suppliers can be vague about how much GST is included
  • wrong rates are used
  • wrong assumptions made about whether an item included GST
  • PST paid when there was an exemption.

The Opportunity

An experienced sales tax auditor can review your electronic accounting records and, using some techniques and algos, find many examples of where the full GST input tax credit did not get claimed.

All of these add up. Here is the beauty. You can claim back  4 (four) years.

The results can be astounding. You would receive money you didn’t know you had claim to.

Do You Think There Might Be Money in Your Walls?

There is no shame to your accounting team in undergoing a review, especially when the purpose of the exercise is to find more money for the company to keep it running. All the largest accounting firms in Vancouver offer sales tax recovery services to their large clients.

Gateway tax offers tax recovery services and smaller companies for late be able to benefit from a review of their sales tax going back up to four years and him to take advantage of the ability to claim back on claimed input tax credits and overpaid sales tax.

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Andrew Adolph

Andrew Adolph is a CPA and former CRA auditor with 25 Years of experience. He helps businesses to not par any more in sales taxs than the law says they must and acts as an advocate for you if you are being audited, so you can fous on your business.