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

A CRA GST/HST Compliance Audit examines how your business collects, remits, and claims Goods and Services Tax (GST) and Harmonized Sales Tax (HST). These audits verify that your Input Tax Credits (ITCs) are supported by documentation and that the correct rates were applied based on your province or territory.
Mackisen CPA Montreal provides comprehensive audit defense and reconciliation, ensuring every tax claim aligns with the Excise Tax Act and CRA’s documentation requirements — protecting your credits, refunds, and reputation.

Legal Foundation

Law: Excise Tax Act (ETA) ss. 165–169 (imposition and ITC eligibility), s. 286 (books and records), s. 289 (CRA audit powers).
Jurisprudence: Northwest Company Inc. v. Canada (2011 TCC) — CRA can disallow ITCs if invoices or proof of payment are incomplete, even when tax was legitimately paid.

Learning insight: CRA doesn’t question your honesty — it questions your evidence. Every ITC needs proof that survives audit.

Why CRA Conducts GST/HST Compliance Audits

CRA performs GST/HST audits when refund claims, ITCs, or filings deviate from expected patterns. Common triggers include:

• Large or frequent refund claims.

• Mismatched totals between income tax and GST/HST returns.

• Missing supplier registration numbers.

• Inconsistent application of place-of-supply rules.

• Businesses in high-refund industries (manufacturing, construction, exports).

Learning insight: CRA’s algorithm doesn’t look for fraud — it looks for imbalance. Mackisen CPA restores that balance with precision.

What Mackisen CPA’s GST/HST Audit Defense Includes

1. ITC Verification: Validate every supplier invoice for registration number, business name, address, and description.

2. Proof of Payment: Match transactions with bank statements or e-transfer confirmations.

3. Place-of-Supply Compliance: Confirm correct GST/HST rates (5%, 13%, 15%) under CRA Policy Statement P-208.

4. Refund Proof: Prepare CPA-certified documentation for high-value refund claims.

5. Exempt vs. Zero-Rated Clarification: Distinguish financial, medical, and export supplies to prevent misclassification.

6. CRA Representation: Handle all communications with auditors for clarity and speed.

Learning insight: CRA audits tax processes, not people. Mackisen CPA ensures your process stands up to every rule.

Common Mistakes in GST/HST Filings

• Claiming ITCs on invoices without valid GST/HST registration numbers.

• Using personal or mixed-use expenses as business ITCs.

• Incorrectly applying zero-rated status to taxable supplies.

• Failing to self-assess GST/HST on imported goods or services.

• Duplicate or late-filed refund claims.

Mackisen CPA identifies and corrects these issues proactively — before CRA disallows your credits or freezes your refunds.

Learning insight: The most expensive mistake in GST/HST is not paying — it’s claiming without documentation.

CRA’s Place-of-Supply Audit Focus

For multi-province businesses, CRA tests whether GST/HST rates were applied correctly:

• Québec / Alberta: 5% (GST only).

• Ontario: 13% (HST).

• Nova Scotia, PEI, NL, NB: 15% (HST).
  CRA ensures that invoices reflect the customer’s province of consumption, not the seller’s.

Learning insight: One wrong postal code can mean thousands in reassessment. Mackisen CPA verifies every place-of-supply determination.

How Mackisen CPA Manages GST/HST Audits

1. Conducts a full pre-audit diagnostic of GST/HST returns and invoices.

2. Reconciles reported sales and purchases to ledger and bank records.

3. Reviews interprovincial transactions for correct rate application.

4. Prepares CRA-compliant documentation binders with all required proofs.

5. Negotiates refunds, adjustments, and audit closure directly with CRA officers.

Learning insight: The best CRA response is readiness. Mackisen CPA provides all the answers before CRA asks the questions.

SEO Optimization and Learning Value

Primary Keywords: CRA GST/HST Audit, GST/HST Compliance Canada, Mackisen CPA Montreal, CPA Firm Near You, Input Tax Credit Audit, Place-of-Supply Verification.
Secondary Keywords: CRA GST documentation, HST refund defense, GST/HST ITC eligibility, CRA audit support Montreal, Revenu Québec GST compliance.

Learning insight: Searchers look for clarity. CRA looks for consistency. Mackisen CPA delivers both.

Real Client Success

• A Montréal exporter recovered $220,000 in GST/HST refunds when Mackisen CPA documented supplier compliance and export shipping proofs.

• A construction firm avoided $95,000 in reassessments after our team corrected place-of-supply rate errors for out-of-province contracts.

• A manufacturing client had its refund released in 14 days after we submitted a full CPA-certified ITC binder.

Learning insight: Refunds move faster when evidence moves first. Mackisen CPA makes your proof impossible to question.

Why Mackisen CPA Montreal

With over 35 years of combined CRA and Revenu Québec audit experience, Mackisen CPA Montreal specializes in GST/HST compliance and defense. Our bilingual CPA team combines accounting accuracy with legal interpretation, giving your business the documentation CRA expects and the peace of mind you deserve.

Learning insight: CRA audits your process — we perfect it. Mackisen CPA turns compliance into confidence.