Taxation refers to the practice of a government collecting money from its citizens and businesses to pay for public services. Depending on where you conduct your business, taxes may include any combination of municipal, provincial and federal tax.
As an employer, you are responsible for deducting Canada Pension Plan contributions, Employment Insurance premiums and income tax from remuneration. The Canadian Revenue Agency has the information needed to make these deductions.
The Canada Revenue Agency conducts business audits to closely examine books and records of small and medium-sized businesses to make sure they fulfill their obligations, apply tax laws correctly, and receive any amounts to which they are entitled. This resource details the audit process.