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

A CRA GST/HST Compliance Audit ensures that businesses are properly collecting, remitting, and claiming input tax credits (ITCs) in accordance with the Excise Tax Act (ETA). CRA and Revenue Québec auditors examine invoices, sales records, and expense documentation to verify that GST/HST has been correctly applied to taxable supplies and that claimed ITCs meet legal eligibility standards. Mackisen CPA Montreal provides comprehensive audit defense, documentation, and representation to ensure your compliance is airtight and your refund claims are protected.

Legal Foundation

Law: Excise Tax Act ss. 221–289; Québec Sales Tax (QST) Act ss. 69–98.
Jurisprudence: The Northwest Company Inc. v. The Queen (2011 TCC) — confirmed that valid invoices and proper supplier documentation are essential to claim ITCs and ITRs.

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

CRA and Revenue Québec auditors use automated cross-matching systems to compare your GST/HST and QST filings against your income-tax returns, supplier records, and customer invoices. A single missing or incorrect registration number can lead to denial of ITCs or even audit reassessment. A CPA ensures that your accounting records, invoices, and remittances align with the law and that any discrepancies are resolved before penalties arise.

Mackisen CPA Montreal reviews your GST/HST filings in depth, validates every ITC claim, and builds a legal defense framework for CRA and ARQ reviews.

Learning insight: Tax credits are rights, not gifts—but rights must be proven. A CPA ensures your proof meets every legal requirement.

What Mackisen CPA’s GST/HST Compliance Audit Defense Includes

• Verification of registration numbers and place-of-supply rules for all transactions.

• Audit of GST/HST collected versus remitted, with reconciliation to income-tax filings.

• Review of input tax credits (ITCs) and input tax refunds (ITRs) for completeness and eligibility.

• Validation of interprovincial and cross-border sales under Schedule IX of the ETA.

• Preparation of full audit-response packages, citing invoices, ledgers, and legislation.

Learning insight: CRA and ARQ don’t reject ITCs because you claimed too much—they reject them when you can’t prove you earned them.

Common Triggers for CRA GST/HST Compliance Audits

• Recurring ITC refund claims exceeding reported GST/HST collected.

• Missing or invalid supplier GST/QST registration numbers.

• Misclassification of taxable vs. exempt or zero-rated supplies.

• Interprovincial or cross-border sales without documented place-of-supply support.

• Differences between income-tax and sales-tax reporting periods.

Mackisen CPA Montreal identifies and corrects these issues early—before auditors disallow legitimate claims or impose penalties.

How Mackisen CPA Manages GST/HST Audits

1. Conducts a pre-audit review comparing FPZ-500-V and GST34 filings to your general ledger.

2. Validates all supplier invoices against CRA and ARQ registration databases.

3. Reviews eligibility of ITCs and ITRs under ETA s.169 and QST s.97.

4. Prepares a documentary binder for each refund or deduction claim.

5. Represents your business directly before CRA and ARQ officers during audit interviews.

Learning insight: An organized response is the fastest path to audit closure. The more complete your file, the shorter your audit.

Benefits of Professional Representation

• Prevents denial of legitimate ITCs and ITRs.

• Protects your business from interest, penalties, and reassessments.

• Ensures accurate classification of supplies for rate and jurisdiction.

• Accelerates refund processing for compliant claims.

• Builds lasting confidence with CRA and ARQ auditors through CPA-verified accuracy.

Learning insight: Sales-tax compliance is not about perfection—it’s about preparation. A CPA ensures every number is ready for review.

SEO Optimization and Learning Value

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Learning insight: Every invoice tells a story—CRA just checks if it’s consistent. Mackisen CPA ensures that story is clear, credible, and compliant.

Real Client Success

• A Montreal importer avoided a $120,000 ITC denial when Mackisen CPA proved supplier registration validity and cross-border documentation.

• A technology company recovered $45,000 in GST/HST refunds after our team reconciled misclassified zero-rated exports.

• A construction firm successfully defended a CRA audit when our reconciliation demonstrated full compliance with ETA s.169.

Why Mackisen CPA Montreal

With decades of experience in sales-tax audits, Mackisen CPA Montreal combines accounting precision with legal expertise. Our team understands the intersection between GST/HST, QST, and income-tax filings—ensuring full compliance across all levels.

Learning insight: GST/HST audits measure systems, not trust. Mackisen CPA builds those systems so your compliance is visible, verifiable, and defensible.

Learning conclusion: Sales-tax compliance is not just about remittance—it’s about defense. Mackisen CPA Montreal ensures every transaction, receipt, and ITC claim stands up under CRA and ARQ review.