Audit process for the speculation and vacancy tax
Last updated on April 9, 2024Anyone who has declared 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, your file 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 directly. You can find the analyst contact information on any written correspondence from the Province.
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 may be unable to make changes to your declaration.
What happens during an audit?
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.
What happens after an audit?
When the audit is complete, we will:
- Review and explain the results
- Notify you if more tax is owed (or 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 we do not receive requested information within the deadline provided and cannot confirm your eligibility for the exemption(s) you claimed, 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 will be provided to you.
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.
If you have not declared yet, complete your declaration, even if it's past the March 31 deadline.
Completing the declaration may eliminate the assessment or reduce your tax rate.
Contact us if you have any questions about the speculation and vacancy tax or if you need translation services.