Full Audit stands for when MRQ want to see your past years books in detail. Revenu Quebec’s audit team will review the following elements where they are applicable:

• Discrepancies in the reconciliation of GST/QST collected on sales and GST/QST paid on purchases;

• Application of taxes to non routine transactions;

• Amounts received or paid as damages under a contract;

• Refund claims for taxes paid on insurance premiums;

• Refund claims for the provincial component of HST;

• Collection of taxes, since April 1, 2013, on taxable supplies made to previously exempt entities (Departments and other prescribed organizations);

• Collection of taxes on subsidies;

• Barter transactions;

• Supply of goods and services for no consideration between non-arm’s length persons;

• Self-assessment of taxes on purchases from non-residents of Canada or Quebec; and

• Refund of taxes paid on various expenses such as: − employee expenses; and − allowances paid to employees (other than via expense reports).

It is strongly recommended to thoroughly review the application of taxes to your operations, to avoid surprises or, at least, be well prepared in the event of a GST/QST audit. Since the GST/QST rules applicable to public sector bodies are numerous and complex.

Do not panic! Contact us immediately when REVENUE QUEBEC sends you a notice for sales tax Audit. We could save you Penalty and Interest costs which can be thousands of dollars.