As our blog reported on June 29th, extensive damage was caused by protesters and rioters to storefronts in the downtown Toronto area during the G20 Summit. Many of these small business owners are seeking compensation from the government to cover the numerous repairs that are necessary to get the businesses back up and running as normal.
Today, The Toronto Star‘s business reporter, Madhavi Acharya-Tom Yew reports that receiving compensation will not be an easy task. Although commercial businesses, non-profit organizations and individuals do have 90 days to apply for the compensation, accountants reveals that the claims will require extensive and detailed information.
Acharya-Tom Yew notes that “claims must include information on revenues and costs from the preceding three years, or the inception of the business.” Assembling all of this information, of course, is bound to take quite a bit of time for most business owners. For many, an accounting nightmare is ahead.
Said forensic accountant, Ari Kashton of Soberman LLP: “Ninety days sounds like a long time but it’s really a very short time frame. To assemble all this information takes time. Companies have to find the extra time and resources to file a properly supported claim when many are already stretched for resources.”
Acharya-Tom Yew goes on to reveal that supporting documentation will be required by those making claims in order to back up their estimates for damage. This may include everything from daily sales reports, tax filing and even bank or credit card statements.
Not only will documentation be required but written explanations will have to be submitted outlining such things as how much money the business could have earned had the G20 Summit not encouraged the destructive rioting. Other details include the steps that businesses may have taken to minimize damage during the summit, if any.
Explains Acharya-Tom Yew: “As well, they have to show that any lost sales were not subsequently recovered. For instance, a retailer that saw a slowdown in business prior to the summit could see a sharp spike in sales in July if customers simply delayed their purchases. That pattern would have to be taken into account when applying for compensation.”
Evidently, the damage done to storefronts in downtown Toronto is set to have long-lasting effects on the store owners. Recouping their losses will require a great deal of effort and time, not to mention hassle and inconvenience.