Overview

An Ontario Ministry of Finance audit is a formal review of your financial information to make sure you are following Ontario’s tax laws. It’s also a chance to learn more about the tax laws that apply to your business and ask questions. Learn more about Ontario’s tax rules.

During an audit, you will learn:

  • why your business was selected
  • what information you need to provide
  • what to expect at each stage of the audit

Our goal is to make the audit process clear, respectful and easy to understand while supporting voluntary compliance.

Audit service commitments

The ministry is committed to providing you with excellent customer service. You can expect us to:

  • maintain the confidentiality of your information
  • safeguard your books and records
  • use secure email to communicate, send and receive documents

Learn more about our service standards and commitments for tax and benefits administration.

Audit selection

You may be chosen for an audit for several reasons, including:

  • random selection
  • risk-based selection
  • referral or cross-reference from another audit or jurisdiction

Location of the audit

An audit can happen in different places, including:

  • on-site at your location of business (field audit)
  • off-site (desk audit)
  • a mix of on-site and off-site

If a field audit is required, where possible, the auditor may request an appropriate workspace to review confidential records.

Code of conduct

We all want to work in a healthy and safe environment where we feel respected. We ask that you help create that environment by being respectful to our ministry staff whenever interacting with them (virtually, on the phone or when they visit your location).

The government has a leading role to play in eliminating systemic racism and ensuring a healthy and safe work environment for all Ontarians, including ministry staff.

When a ministry staff person is working on the phone, virtually, or anywhere onsite, that location becomes their workplace where they must be safe and respected.

Hate, racism, discrimination and harassment will not be tolerated.

Ontario government employees have a duty to report when they are treated with disrespect by clients, and the Ontario government as their employer has a duty to address those situations.

We are committed to promoting interactions that are inclusive and support dignity and respect. Working together, we can help ensure that interactions are respectful and safe for everyone.

Audit process

Starting the audit

If you are selected for an audit, we will:

  • contact you by phone or letter and provide a list of information required
  • provide the names and contact details of both the auditor and auditor’s manager
  • confirm who is authorized to represent you during the audit
  • work with you to set a start date for a field audit, typically providing at least 15 working days’ notice
  • generally, provide you with 30 working days to provide the information requested for desk audits

Note:

If you are being audited for more than 1 tax law, you can ask for the audits to be coordinated to reduce disruption to your business.

During the audit

An audit involves interviews with staff and an examination of your books and records.

During the audit, the auditor will:

  • conduct the audit during normal business hours and with minimal disruption
  • verify that your taxes were calculated and paid correctly
  • explain relevant tax rules and answer your questions
  • discuss any proposed adjustments as issues arise and give you the opportunity to provide further information
  • prepare a summary of proposed adjustments once the desk or field work is completed
  • meet with you and/or your authorized representative to explain any proposed adjustments and provide you with information to assist you in future compliance
  • give you 30 working days to provide additional information or arguments in response to proposed adjustments (IFTA/IRP clients have 30 calendar days)

Our goal is to ensure the audit process is clear, accurate and respectful while supporting future compliance.

Finishing the audit

The auditor will let you know the audit is complete and provide you with a summary of the results.

Once the audit is complete, the auditor will:

  • notify you that the audit has finished
  • provide the final audit results
  • outline payment or credit instructions
  • inform you of your right to file a Notice of Objection

Assessment

An assessment is a formal notice of how much tax is owed or credited based on the results of the audit.

Interim assessment

You may receive an interim assessment for a portion of the period being audited if that period is close to an assessment deadline. When the audit is complete, you will receive a document that explains how the interim assessment fits into the final assessment.

Liability assessment

If the audit results in tax owed:

  • payment is due within 30 days of the assessment
  • interest is charged daily on any unpaid amount until it is paid in full
  • payment is required even if you disagree with the assessment and intend to file a Notice of Objection

Payment

You must pay by either cheque or online. For payment arrangements, please contact us at 1-866-668-8297.

Cheque

The cheque must be payable to the Minister of Finance.

You can send it by mail or give it to the auditor.

If sending by mail, also include audit documentation outlining the assessment breakdown.

Ministry of Finance
33 King Street West, PO Box 620
Oshawa ON
L1H 8E9

Online

Credit assessment

If the audit results in a credit assessment, you may either:

  • use the credit to lower your next tax payment
  • request a refund of the credit balance from the Ministry of Finance

Objection to an assessment

If you do not agree with your assessment or disallowance, you may request a review by filing a Notice of Objection with the ministry’s Advisory, Objections, Appeals and Services Branch. The review is conducted independently of the original decision.

You can download a Notice of Objection form or get one from

  • your auditor
  • any Ministry of Finance Tax Office

Deadline to file a Notice of Objection:

  • 180 days from the date the Notice of Assessment or Statement of Disallowance was mailed to you for most Ontario tax laws
  • 30 days from the date of the Notice of Assessment or Statement of Disallowance was mailed to you for International Fuel Tax Agreement (IFTA) and International Registration Program (IRP) assessments

Learn more about objection and appeal procedures.

Voluntary disclosure

Ontario’s voluntary disclosure policy lets individuals, businesses or their representatives correct inaccurate, incomplete or unreported information. The intent of this policy is to encourage voluntary compliance.

The disclosure may not be treated as voluntary if you disclose past non-compliance after the ministry has contacted you about an audit or other compliance issues.

Learn more about voluntary disclosure.

Books and records

You must keep books and records in Ontario unless you have received approval from the Minister of Finance to store them elsewhere.

You must provide books and records when requested by the ministry.

Failure to comply with these rules is an offence.

What to keep

The ministry does not generally specify what books and records you must keep. However, you should keep books and records that:

  • show the taxes owed
  • show how the taxes or amount collectable are calculated
  • provide proof of any tax exemptions you claim
  • verify deductions you make for charitable, athletic and political donations

Keep source documents such as vouchers, invoices, bank statements and contracts that verify the information in your books and records.

Destruction of books and records

Rules about the destruction of books and records depend on the tax rules that apply to you and your business.

Learn more about the retention and destruction of books and records.

Contact us

If you have questions about a Ministry of Finance audit, contact us:

Customer service hours are Monday to Friday, 8:30 a.m. to 5 p.m.