CRA audits are on the rise—and they’re more complex and costly than ever. For Canadian business owners, accountants, and especially those in high-risk industries like construction and real estate development, preparing for the unexpected is now part of doing business.
In a recent episode of the Your Business Unleashed podcast, host Clayton Achen, sat down with Michael Sexton of Accountancy Insurance and David Crawford, a former CRA auditor and Indirect Tax Specialist at Achen Henderson, to demystify how AuditShield is helping businesses protect themselves from the financial strain of audit defense, and to talk about current trends in the CRA’s audit activity.
What Is AuditShield and Why Does It Matter?
AuditShield is not traditional insurance—it’s a fee waiver service that covers professional fees incurred when responding to CRA audits, reviews, and investigations. Originating in Australia, AuditShield has been active in Canada for nearly a decade and has helped firms defend against over 5,000 CRA audits annually.
Instead of clients paying out-of-pocket for thousands in accounting fees to defend themselves against the CRA – often just to prove they’ve done nothing wrong – AuditShield covers the cost of audit defense, allowing accountants to advocate fully for their clients without hesitation.
Real Stories, Real Value
Clayton shared a cautionary tale: a client once faced a proposed CRA reassessment of $700,000. After extensive defense, the outcome was a $0 reassessment—but the client had to pay tens of thousands in professional fees. They didn’t have AuditShield.
With AuditShield, a substantial part of that burden would have been covered.
What’s Covered?
AuditShield applies to a wide range of government agency reviews—not just CRA:
- GST, PST, and QST audits
- Corporate tax post-assessing reviews
- T1 processing reviews
- Canada Customs duty assessments
- WCB and payroll-based audits (e.g., WorkSafeBC)
to name a few.
It even covers third-party professionals (e.g., tax lawyers or bookkeepers) engaged by your accountant for audit support.
CRA Audit Trends: Why You Should Act Now
Michael and David shared critical insights from the latest audit data:
- GST audits, pre-assessment and post-assessment reviews have spiked by nearly 30%, especially in construction and real estate
- CRA is now auditing multiple years at once and revisiting issues even after finding no errors in previous years
- Common audit triggers: large GST refunds, vehicle expenses, foreign tax credits, professional fees, and advertising claims
- Small builders and mom-and-pop developers are being audited just as frequently as large firms
Their advice? Get AuditShield before the CRA’s letter arrives. Once CRA contacts you, it’s too late to enroll.
Peace of Mind and Professional Support
AuditShield empowers accountants to bring in experts, like David Crawford, for indirect tax matters, without having to worry about the associated fees. It ensures that businesses can defend themselves thoroughly without breaking the bank—and that accountants aren’t left chasing bills from their clients.
If you’re an entrepreneur, real estate developer, doctor, lawyer or other small business owner, consider this your sign to protect your business before an audit disrupts your operations.
Interested in AuditShield?
If you’re an existing client of Achen Henderson and want to enroll in AuditShield, contact our engagement team (info@achenhenderson.ca) today. If you’re already in the middle of an audit and enrolled, our team is ready to help you navigate the process—backed by real audit data, decades of experience, and the full power of AuditShield.
You can learn more about AuditShield by visiting our web page here: Audit Shield Insurance: Fee Waiver Service for CRA Audits – AH CPAs