Management and Organizational Studies 3370A/B Lecture Notes - Lecture 5: Multiple Choice, Forensic Accounting, Costco

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3370A/B
• Professor: Maria Ferraro

Document Summary

We don"t look at proprietorship & partnership since they have a same legal entity, so they would be audit as personal tax. It is a revenue generating concept for the government but instead of calling every individual and ask. What did you buy this year , they use a sale tax by asking org to charge people additional to the product"s cost (org has no choice) When the org collect it from the customer, it should hold on to it and give it to the government in the end of the year. When gov send their auditors, they want to make sure that the org is properly charging the tax, collecting it and sending it in. If you have to do sales tax, you should go under audit regardless of the type of org you have: it is a random thing. Doesn"t happen every year (can go years w/o it)