The frequency of tax audits and investigations have substantially increased because of technology tools that enables detailed cross referencing of information from different government agencies. When an individual or business is subjected to tax audit, costs can be substantial. It is for this reason why there is coverage provided by audit insurance company to cover professional fees that will be incurred during the response process.
Port Coquitlam mosque was recently cited for some financial irregularities and potential ties to overseas funding linked to militant Islamic group Hamas. The mosque expects to receive a federal grant worth $53,000 for the improvement of security in communities that may be subjected to hate-motivated crimes. According to the Ministry of Public Safety and Emergency, the money will be used for the procurement and installation of CCTV’s and alarm system at Masjid Alhidayah and Islamic Cultural Centre on Kingsway Avenue.
Last May, the society that that operates the PoCo mosque was required to pay a fine of $9,120 after Canada Revenue Agency (CRA) audit from 2011 to 2013 revealed thousands of dollars in financial irregularities and questionable expenses amounting to $127,000. CRA noted spending that amounted to $66,028 for groceries and pharmaceutical items, $22,193 for gas and car washes, $2,967 for meals taken at restaurants, $4,239 for electronics items that include PlayStation games and an iPad and $4958 for an Evolution spa.
Most of the expenses that were paid through the credit card of Mr. Bahr were reimbursed but they are considered as personal expenses constituting undue benefits. The CRA also noticed some links to the Eid Foundation, an organization based in Qatar and member of Union of Good, an organization created by Hamas leadership to transfer funds to terrorist groups.
The government takes seriously allegations of links to organizations that support terrorism. However, CRA has chosen not to revoke the status as a registered charity.
The benefits that can be gained from audit insurance company apply to both the accountant and the client. It is human nature to commit mistakes but when it comes to tax audit, mistakes take a new meaning. Audit insurance is the protection from substantial costs that will be incurred from having to sort out all audit requirements.