PAYROLL AUDITS
In a June 7, 2019 Technical Interpretation (2019-0798351C6, Monteith, Laura), CRA commented on whether a CPP/EI ruling triggers follow-up assessing and review.
CRA noted that a referral to the Trust Accounts Examination Division is not automatically sent after the completion of a CPP/EI ruling. However, it is sent in situations such as where:
the ruling changed the worker’s status from employee to self-employed, or vice versa;
a related worker was determined to be dealing at arm’s length and, therefore, insurable, but no EI premiums had been remitted; and
an employee relationship was confirmed but there were no source deductions remitted or T4 submitted.
For further information see Video Tax News Monthly Tax Update Newsletter, Issue No. 459.