CRA GST/HST Compliance Audit — Montreal CPA Firm Near You: ITCs, Rates, and Documentation Defense

A CRA GST/HST Compliance Audit determines whether your business correctly collected, charged, reported, and claimed GST/HST or QST. These audits are increasingly common because sales-tax systems produce detailed digital trails, allowing CRA and Revenu Québec to match your filings against supplier reports, banking data, and industry norms.
Mackisen CPA Montreal defends businesses by validating every Input Tax Credit (ITC), correcting place-of-supply errors, rebuilding missing documentation, and preparing complete CPA-certified audit files that satisfy CRA and ARQ audit standards.

GST/HST audits require strong accounting controls — not just correct math. Even small documentation gaps can cause CRA to deny credits or freeze refunds.

Legal Foundation

Excise Tax Act ss.165–169 — governs tax charged, collected, and ITC entitlement.
Excise Tax Act s.286 — requires complete books and records for all taxable transactions.
Tax Administration Act (Québec) — enforces QST compliance with similar audit powers.
Jurisprudence: Northwest Company Inc. (2011 TCC) — CRA may deny ITCs even when GST was paid if invoices lack mandatory details.

Learning insight: GST/HST is a documentation tax. If the paperwork is weak, CRA denies the credit — even when the transaction is real.

Why CRA Performs GST/HST Compliance Audits

CRA selects GST/HST files for audit when it detects red flags such as:
• large or recurring refund claims
• ITCs claimed on invoices missing GST/QST registration numbers
• mismatches between GST/HST filings and income-tax filings
• suppliers flagged as high risk or non-compliant
• place-of-supply inconsistencies (wrong provincial rate charged)
• cash purchases without receipts
• industries with high audit rates (construction, retail, transportation, import/export)

Learning insight: CRA doesn’t assume fraud — it assumes risk. Your CPA must remove that risk by supplying ironclad evidence.

CRA GST/HST Audit Process

1. CRA issues an audit notice requesting invoices, general ledgers, bank statements, and supplier lists.

2. CRA tests ITCs using invoice sampling, supplier verification, and payment tracing.

3. CRA validates GST/HST rates using place-of-supply rules for each province.

4. CRA compares your reported sales with POS and merchant deposit records.

5. CRA issues proposed adjustments or releases the file.

Learning insight: CRA auditors don’t want explanations — they want paperwork that speaks for itself.

Mackisen CPA’s GST/HST Defense Strategy

• verify all supplier GST/QST registration numbers
• validate invoices using Excise Tax Act mandatory requirements (date, BN, tax amount, consideration)
• match ITCs to bank or credit-card payments
• correct place-of-supply issues using Schedule IX of the ETA
• prepare CPA-certified audit binders to reduce CRA follow-up requests
• reconcile POS deposits with GST/HST returns
• respond directly to CRA to avoid misstatements
• file objections when CRA denies valid credits without basis

Learning insight: A CRA audit can only adjust what you cannot prove. With proper CPA documentation, everything becomes provable.

Common CRA Findings

• ITCs claimed on invoices missing GST or QST numbers
• personal or mixed-use expenses claimed as commercial
• incorrect GST/HST rates charged for interprovincial sales
• non-registered subcontractors issuing tax-inclusive invoices
• unpaid invoices incorrectly claimed as ITCs
• refund claims based on incomplete records
• export services not properly supported for zero-rating
• missing import documentation for GST self-assessment

Learning insight: Most denials result from missing paperwork — not tax mistakes. Paperwork is fixable.

Real-World Results

• A construction company recovered $290,000 in denied ITCs after Mackisen CPA reconstructed missing subcontractor invoices and validated BN registrations.
• A logistics firm had a $72,000 GST/HST reassessment reversed after we proved correct place-of-supply for multi-province deliveries.
• A consulting firm cleared a two-year audit in 9 days when we supplied a complete CPA-formatted audit binder and supplier verification sheets.

Learning insight: CRA closes files quickly when the documentation is clean, consistent, and CPA-certified.

SEO Optimization and Educational Value

Primary keywords: CRA GST/HST audit, GST/HST compliance Canada, Mackisen CPA Montreal, CPA firm near you, Input Tax Credit audit
Secondary keywords: GST refund audit, CRA supplier verification, QST audit Quebec, place-of-supply rules, GST documentation requirements

Learning insight: Search engines and auditors both reward clarity — clarity is our competitive advantage.

Why Mackisen CPA Montreal

With over 35 years of GST/HST and QST audit-defense experience, Mackisen CPA Montreal provides the structure, documentation, and legal-tax reasoning CRA expects. Our bilingual team has defended hundreds of GST/HST audits across Québec and Canada, from small businesses to multinational groups.

Learning insight: GST/HST is not a tax that tests accuracy — it tests documentation. We make your documentation unbeatable.

Call to Action

If CRA or Revenu Québec has launched a GST/HST Compliance Audit or requested records, respond immediately before penalties accumulate.
Contact Mackisen CPA Montreal today for GST/HST defense, documentation reconstruction, and audit representation.
Phone: 514-276-0808 | Email: info@mackisen.com | Website: mackisen.com

Learning conclusion: A CRA GST/HST Compliance Audit tests your paperwork, your processes, and your consistency. Mackisen CPA Montreal ensures all three are clean, compliant, and fully defensible — protecting your refunds, your credits, and your business.