General Review Proposal

Introduction

Fairtax has adapted the process involved in a general Commodity Tax Review (CTR) to emphasize a comprehensive approach that:

• minimizes client staff time
• endorses a reporting system that ensures the client is fully aware of our findings
• handles whatever liaison is required with the tax authorities

Scope

Fairtax reviews the payment, collection and remittance of all Canadian Sales Taxes, Payroll Taxes, Fuel Taxes and Customs Duty to identify areas where the client is entitled to a recovery, either by way of internal adjustment or by refund claims.

Fairtax also provides the client with the following:

• information needed for the preparation of all claims
• a draft report for management detailing eligible areas to recover monies
• a final report with supporting documentation to substantiate any recoveries

The client may choose to authorize Fairtax to act on its behalf with the relevant tax authorities for any recoveries filed.

Offsite Data Review

Most CTR's begin with a call or meeting with a member of your information technology staff. Fairtax provides the client with a description of the information required and the format needed in order to perform a comprehensive data analysis of the accounts payable offsite.

Electronic data analysis creates the following advantages:

• a much larger data set can be reviewed
• the review can be completed in a fraction of the time
• recoveries and liabilities are immediately highlighted and therefore optimized

On-site Follow Up

Fairtax performs the following tasks while on site:

• specific Issue testing
• testing of accounts payable vouchers
• quantification of any and all refund opportunities

The on-site review requires a minimal amount of your staff's time. All we require is a basic workspace. Access is needed to your accounts payable and vendor files, and assistance from staff is required from time to time to provide support documentation. It is not necessary for dedicated personnel to assist us in our review.

Reporting the Results

On completion of the review, our Consultant prepares a Recovery Report detailing the following:

• the areas of recovery
• the legislative/interpretive grounds for such recoveries
• the scheduling of all relevant vouchers
• full documentary support for the amounts identified

Post Recovery Support

We ensure that our findings are integrated on a 'go forward' basis by implementing our tax knowledge and strategies into your day-to-day operations. If requested, Fairtax will provide an educational conference to staff if the review findings are widespread or systematic.

Assistance is available on an ongoing basis to research and respond to any technical questions you may have regarding commodity taxes. Just call Fairtax's toll free number and we'll be happy to research your inquiry.