Suppliers must give their clients an invoice that corresponds to the actual transaction made. Suppliers must not provide an invoice showing the sale of a single product when several products are sold. For example, fuel retailers must not provide receipts that show only the sale of fuel when other items are sold, or even when no fuel at all is sold.
The risk with improper billing is that deductions might be claimed for purchases that are not generally considered employment or business expenses. A tax refund might also be claimed for these purchases although they were not incurred with respect to a commercial activity.
Such a business practice runs counter to tax fairness since it allows some taxpayers to take advantage of deductions to which they are not entitled.
Persons that engage in improper billing are liable to a fine of
- not less than $400 nor more than $5,000 for a first offence;
- not less than $2,000 nor more than $10,000 for a subsequent offence within five years;
- not less than $5,000 nor more than $25,000 for any subsequent offence within five years.