Information needed during an audit of your claim

The auditor who has been assigned your Canadian Film or Video Production Tax Credit (CPTC) claim will set up a meeting with your contact person and will ask for access to documents that support the claim. To help us in our work, we ask that the requested information be made available as quickly as possible.
While auditing your claim, we may ask for the following documents:

• the complete file supporting the application submitted to Canadian Audio-Visual Certification Office (CAVCO);
• the minute book of the qualified corporation and any related corporations;
• the books and records as well as supporting documents of the corporation;
• agreements between the qualified corporation or any other related corporations and Telefilm Canada, Société de développement des entreprises culturelles (SODEC), financial institutions, and any other agency concerning financing and distribution of the production;
• agreements between actors, producers, directors, and other persons and the qualified corporation; and
• any other documents that may be needed to support your claim.

Scope of the audit

We will normally limit our audit to the CPTC claim(s) made by the qualified corporation for a given year. However, we may audit other items that could have an impact on the CPTC claimed by the corporation. We will send you a letter to tell you when the audit is complete.

Re-auditing the same CPTC claim

We may conduct a second audit of a CPTC claim that we have already audited or approved without an audit if any of the following situations occurs:

• an expenditure for salary or wages or other remuneration that was included in the production cost was not paid within 180 days after the end of the corporation's tax year;
• fraud or misrepresentation of fact is identified;
• CAVCO asks us to audit items related to Canadian content on its behalf; or
• unusual circumstances affecting the CPTC arise after the end of the corporation's tax year.

We may also select the qualified corporation's T2 return for audit under our regular audit program. In that case, the CPTC will not be re-audited unless one of the above-mentioned situations applies.

Objecting to an unfavourable outcome

We will generally reconsider a tax assessment if you file an objection because:

• you are not satisfied with our explanation of your assessment;
• your request for an adjustment has been denied; or
• there is a dispute over interpretation of the law.

The Appeals Division will do an impartial review of the file. If you are still unsatisfied with the outcome, you can appeal to the Tax Court of Canada.

Forms and publications

• T2 Corporation Income Tax Return