CRA GST/HST Compliance Audit — Montreal CPA Firm Near You: Input Tax Credits and Place-of-Supply Verification

A CRA GST/HST Compliance Audit is designed to ensure that your business is correctly collecting, remitting, and claiming input tax credits (ITCs). Mackisen CPA Montreal specializes in defending clients through every stage of a CRA or Revenu Québec GST/QST audit — from reconciling sales tax filings to representing you before tax authorities when compliance gaps are discovered.

A GST/HST audit is not just about sales tax — it’s about your entire business ecosystem. CRA uses this audit to test whether your accounting system, invoices, and supplier documentation support every tax credit and remittance you’ve claimed.

Legal Foundation

Law: Excise Tax Act ss.286–289 — requires taxpayers to maintain records proving ITCs, remittances, and collections.
Québec Tax Administration Act ss.34–37 and QST Act ss.59, 69, 97–98 — empower Revenu Québec to inspect, audit, and seize records when documentation is missing.
Jurisprudence: Northwest Co. Inc. v. Canada (2011 TCC) — ITCs are denied if invoices do not meet statutory requirements, regardless of intent.

Learning insight: Every missing invoice is a forfeited credit. Every unrecorded sale is a future penalty. Mackisen CPA ensures both are properly aligned.

Why CRA Conducts GST/HST Audits

CRA and Revenu Québec use advanced algorithms to detect risk indicators. Audits are typically triggered by:

• Unusually high or recurring refunds.

• ITC claims that don’t match supplier reporting.

• Invoices missing required tax registration numbers.

• Industry benchmarks showing abnormal sales-to-tax ratios.

• Frequent filing corrections or late remittances.

Learning insight: CRA does not audit randomly — it audits patterns. Mackisen CPA ensures your data tells a consistent compliance story.

How CRA Performs a GST/HST Compliance Audit

1. Initial Risk Review: CRA or ARQ analyzes your tax filings versus supplier reports.

2. Audit Notice: A letter requests invoices, general ledger reports, and bank statements.

3. Invoice Sampling: Auditors select random ITC claims and supplier transactions for validation.

4. Verification: CRA confirms GST/HST numbers and place-of-supply rules per province.

5. Findings & Adjustments: Missing invoices or errors lead to denied credits or assessments.

6. Appeal & Resolution: Mackisen CPA Montreal responds with supporting evidence or objection filings.

Learning insight: The most common GST audit failure isn’t fraud — it’s paperwork fatigue. Organized records are your first defense.

What Mackisen CPA’s GST/HST Compliance Defense Includes

• Full reconciliation of GST/HST collected versus remitted.

• Verification of supplier GST/QST registration numbers through CRA database.

• Review of input tax credits for eligibility and documentation.

• Place-of-supply testing for interprovincial and international sales.

• Filing corrections and voluntary disclosures to avoid penalties.

• Representation during CRA and Revenu Québec meetings, interviews, and appeals.

Learning insight: Tax software posts; accountants defend. Mackisen CPA stands between automation and enforcement — protecting both numbers and intent.

Common Audit Red Flags

• GST or QST registration numbers missing or invalid on supplier invoices.

• Overclaimed ITCs on personal or exempt expenses.

• Refund requests exceeding revenue trends.

• Unfiled or late FPZ-500-V returns in Québec.

• Interprovincial sales with incorrect tax rates or place-of-supply errors.

Learning insight: Every invoice tells a story — Mackisen CPA ensures yours ends in compliance, not in reassessment.

Real-World Results

• A manufacturing client recovered $74,000 in denied ITCs after Mackisen CPA located missing invoices and verified supplier registration.

• A retail business avoided $25,000 in penalties when we reconciled FPZ-500-V filings across multiple years.

• A digital-services company reduced its assessment by 80% after Mackisen CPA proved that export services were zero-rated under Excise Tax Act s.7.

Learning insight: CRA reads numbers; Mackisen CPA reads law. That’s the difference between audit exposure and audit defense.

SEO Optimization and Educational Value

Primary Keywords: CRA GST Audit, CRA HST Audit, GST/HST Compliance Audit, Mackisen CPA Montreal, GST/HST Input Tax Credits, CPA Firm Near You.
Secondary Keywords: Revenu Québec QST Audit, CRA Sales Tax Review, GST/HST Invoice Requirements, Tax Credit Defense, Mackisen CPA Tax Audit Help.

Learning insight: Search engines and tax auditors share one rule — credibility wins. A clean file ranks high in both audits and SEO.

Why Mackisen CPA Montreal

With over 35 years of combined tax-law and audit experience, Mackisen CPA Montreal has represented hundreds of GST/HST and QST audit clients. Our bilingual CPA team ensures cross-jurisdictional accuracy and builds airtight documentation that withstands CRA and Revenu Québec scrutiny.

Learning insight: Compliance is confidence in writing. Mackisen CPA ensures your invoices, filings, and refunds all speak that language.

Call to Action

If you’ve received a CRA or Revenu Québec GST/HST Audit Notice, respond immediately before adjustments and penalties compound.
Contact Mackisen CPA Montreal today to protect your credits, recover overpayments, and restore audit confidence.
Phone: 514-276-0808 | Email: info@mackisen.com | Website: mackisen.com

Learning conclusion: A GST/HST audit tests more than your tax math — it tests your business integrity. Mackisen CPA Montreal ensures both survive the audit, stronger and compliant