CRA Corporate Income Tax Audit — Montreal CPA Firm Near You: Large File Defense

A CRA Corporate Income Tax Audit is an extensive examination of a company’s financial statements, tax filings, and internal controls. It is typically reserved for mid-sized and large corporations, but can also apply to growing small businesses flagged for rapid expansion or complex transactions. Mackisen CPA Montreal provides full corporate audit representation, ensuring that every deduction, intercompany transaction, and capital item stands up to CRA and Revenue Québec scrutiny.

Legal Foundation

Law: Income Tax Act (ITA) Part I; Regulations 1100–1101; Tax Administration Act (Québec) s.34–37.
Jurisprudence: General Motors of Canada Ltd. v. Canada (2008 FCA) — confirms that corporations must apply tax principles consistently across reporting periods, ensuring comparability and accuracy.

Why You Need a CPA for a Corporate Income Tax Audit

Corporate audits are far more complex than individual or small-business audits. CRA auditors test your company’s internal processes, control systems, and management decisions—not just numbers. A CPA firm ensures that every corporate transaction, from depreciation to transfer pricing, is documented in accordance with the law and Canadian accounting standards (ASPE or IFRS).

Mackisen CPA Montreal works with corporations to ensure transparency, accuracy, and defensibility at every stage of the audit process.

Learning insight: CRA audits financial accuracy; CPAs defend financial integrity. The difference lies in how your story is told—on paper and in evidence.

What Mackisen CPA’s Corporate Audit Defense Includes

• Comprehensive review of tax provisions, deferred tax assets, and liability recognition.

• Verification of intercompany transactions, management fees, and shareholder compensation.

• Reconciliation of accounting income to taxable income (Schedule 1 reconciliation).

• Validation of capital cost allowance (CCA) claims and capital losses.

• Preparation of legal and financial defense documentation in accordance with CRA audit manuals.

Learning insight: CRA’s focus is not what you deducted, but why. Mackisen CPA ensures your “why” is backed by law and logic.

Common Triggers for CRA Corporate Income Tax Audits

• Significant year-over-year fluctuations in revenue or net income.

• Related-party transactions lacking transfer-pricing documentation.

• High management fees or intercompany charges without formal agreements.

• Reclassification of expenses or deferred revenue entries.

• CRA data matches revealing GST/HST or payroll discrepancies.

Mackisen CPA Montreal identifies and mitigates these audit triggers early, preventing audit expansion or reassessment.

How Mackisen CPA Manages Corporate Audits

1. Conducts a pre-audit internal review to identify high-risk areas.

2. Aligns accounting and tax records across multiple fiscal years.

3. Prepares CPA-certified reconciliation binders with full evidentiary support.

4. Coordinates communication directly with CRA and ARQ auditors.

5. Provides legal liaison support for objection and appeals processes if necessary.

Learning insight: CRA expects precision—CPAs deliver it. Corporate audits reward businesses that can explain complexity through consistent documentation.

Benefits of Professional Representation

• Minimizes audit duration and corporate disruption.

• Prevents misinterpretation of accounting adjustments or accruals.

• Protects corporate officers and directors from personal liability.

• Enhances future audit readiness and control efficiency.

• Ensures every line on your return is traceable to source evidence.

Learning insight: In corporate audits, silence invites assumption. CPA-guided documentation replaces uncertainty with certainty.

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Learning insight: CRA corporate audits demand a system, not a reaction. Mackisen CPA builds that system so every year-end stands ready for inspection.

Real Client Success

• A Montreal manufacturer reduced a $180,000 CRA reassessment to zero after Mackisen CPA reconciled intercompany management fees with ASPE-compliant evidence.

• A real estate holding company successfully defended a five-year CCA review using structured fixed-asset documentation.

• A Quebec technology firm cleared an aggressive CRA transfer-pricing audit by presenting OECD-aligned documentation.

Why Mackisen CPA Montreal

Mackisen CPA Montreal unites corporate taxation, financial reporting, and legal audit support to form a complete audit defense system. Our CPA auditors understand how CRA interprets data and how to close files quickly, accurately, and decisively.

Learning insight: CRA measures compliance by systems; Mackisen CPA builds yours to withstand any audit—today or ten years from now.

Learning conclusion: A corporate audit is a stress test of your company’s structure. Mackisen CPA Montreal ensures that under the CRA’s scrutiny, your compliance holds firm—and your confidence stands stronger.