CRA GST/HST Compliance Audit — Montreal CPA Firm Near You: ITCs, Place of Supply

A CRA GST/HST Compliance Audit reviews whether your business has correctly charged, collected, and remitted Goods and Services Tax (GST) and Harmonized Sales Tax (HST). For Quebec businesses, Revenue Québec performs a parallel QST audit under the Tax Administration Act. Mackisen CPA Montreal defends companies through these audits by reconciling ledgers, invoices, and returns to ensure compliance while protecting input tax credits (ITCs) and minimizing reassessment risks.

Legal Foundation

Law: Excise Tax Act ss. 286–289; Tax Administration Act (Québec) ss.34–37.
Jurisprudence: The Northwest Company Inc. v. Canada (2011 TCC) — confirmed that ITCs can only be claimed when valid invoices contain all required information and the supplier is properly registered.

Why You Need a CPA for a GST/HST Compliance Audit

GST/HST audits are among the most common CRA verifications. Even small discrepancies—such as missing registration numbers, late filings, or incorrect place-of-supply rules—can trigger costly assessments. CRA and ARQ expect businesses to prove both collection accuracy and ITC eligibility. Mackisen CPA Montreal ensures your tax records, invoice formats, and filing procedures meet every legislative requirement.

Learning insight: In GST/QST audits, evidence is everything. A CPA ensures every credit is supported by valid documentation before CRA or ARQ arrives.

What Mackisen CPA’s GST/HST Audit Defense Includes

• Complete reconciliation of GST/HST and QST returns to sales and purchase ledgers.

• Verification of supplier registration and invoice validity for ITCs/ITRs.

• Review of place-of-supply rules for interprovincial or cross-border transactions.

• Validation of adjustments, bad-debt claims, and exempt vs. taxable supplies.

• Preparation of CPA-certified reports for CRA and Revenue Québec auditors.

Learning insight: CRA expects three proofs—collection, remittance, and entitlement. CPA oversight ensures you have all three ready before the audit.

Common Triggers for GST/HST and QST Audits

• Large or recurring refund claims without supporting invoices.

• Frequent input-tax adjustments or partial exemptions.

• Industry risk flags: construction, hospitality, and e-commerce.

• Place-of-supply errors across provinces or for online services.

• Mismatch between GST/HST filings and income tax or accounting records.

Mackisen CPA Montreal identifies and corrects these risks before they attract auditor attention.

How Mackisen CPA Manages GST/HST Compliance Audits

1. Reviews filed returns, invoices, and general ledger entries.

2. Validates ITC and ITR documentation for accuracy and registration proof.

3. Analyzes interprovincial transactions under the place-of-supply framework.

4. Reconciles CRA and ARQ accounts to internal books.

5. Communicates directly with CRA and ARQ auditors to clarify issues quickly.

Learning insight: CRA and ARQ apply the law mathematically—but interpret intent legally. A CPA bridges both with logic and documentation.

Benefits of Professional Representation

• Protects legitimate ITCs and prevents denial due to minor technicalities.

• Avoids reassessments, penalties, and interest under ETA s.285.

• Clarifies mixed or exempt supplies for compliance accuracy.

• Ensures business continuity and audit-readiness across all reporting periods.

• Provides complete documentation for appeals if required.

Learning insight: CRA’s GST/HST audit is not about finding fraud—it’s about finding fault. A CPA prevents both.

SEO Optimization and Learning Value

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Learning insight: CRA doesn’t question the tax you pay—it questions the proof you keep. Mackisen CPA ensures every proof meets the standard.

Real Client Success

• A Montreal importer recovered $240,000 in denied ITCs after Mackisen CPA reconstructed supplier registration evidence.

• A construction firm passed its GST/QST joint audit after our team validated subcontractor invoices and place-of-supply elections.

• A professional service company cleared a $75,000 reassessment by showing proper interprovincial invoicing documentation.

Why Mackisen CPA Montreal

Mackisen CPA Montreal’s team understands both CRA and Revenue Québec audit methodologies. We combine tax-law precision, accounting rigor, and legal insight to keep your compliance airtight and your credits protected.

Learning insight: CRA doesn’t penalize honest mistakes—it penalizes missing evidence. Mackisen CPA makes your compliance verifiable and defensible.

Learning conclusion: GST/HST compliance isn’t just about tax—it’s about transparency. Mackisen CPA Montreal ensures every invoice, every credit, and every return meets the highest audit-proof standard.