The Accountancy Insurance Claims Department continues to be busy processing claims from client CPA firms across Canada. In fact in the 3 years we have been in Canada we have paid/accrued $4.3M in claims.
The three most common review/audit activity areas that have been noted were:
- Processing Reviews of T1’s
- Limited Reviews of T2’s
- GST/HST/PST/QST Reviews of Businesses (Pre and Post Assessment Reviews)
Of the processing reviews of T1s, medical expenses, charitable donations and moving expenses were the biggest types. While these amounted to 37% of the total number of claims received, they equated to only 12% by value.
In 2018 we saw a huge number of T2 limited reviews of professional fees and class 10 vehicles. So far in 2019 we have seen a spike in vehicle expense reviews.
The below pie chart shows the distribution of claims frequency activity in Canada*
* Correct as at July 2019.