CRA GST/HST DJ Services, Event Entertainment & Audio Production Audit — Montreal CPA Firm Near You: Defending Taxable Performance Fees, Equipment ITCs, Subcontractors & Travel Charges

A CRA GST/HST DJ, Event Entertainment & Audio Production Audit targets businesses providing:

• DJ services (weddings, clubs, corporate events)
• event entertainment services
• MC & hosting services
• sound system setup & teardown
• audio production and mixing for events
• party/event lighting setup
• karaoke hosting
• mobile DJ companies
• subcontract DJ assistants
• travel-based event packages

This sector is one of CRA’s highest audit-risk entertainment categories because it is:

• cash/e-transfer heavy
• multi-service (DJ + lighting + sound + hosting)
• event-based with weekend spikes
• full of subcontractors
• highly mobile (multi-city)
• equipment-intensive (high-value ITCs)

Mackisen CPA Montreal specializes in defending entertainment-sector audits by reconstructing events, validating subcontractors, and securing ITCs for expensive audio/lighting equipment.

Legal Foundation

Excise Tax Act

• s.165 — ALL DJ, entertainment, hosting, lighting, and audio production services are fully taxable

• s.221 — GST/HST must be collected on all event packages

• s.169 — ITCs require proper invoices + proof of payment

• s.141.01 — mixed-use allocations for computers, speakers, lighting gear

• Schedule IX — GST/HST rate based on event location (QC/ON/Atlantic)

• s.123(1) — “entertainment service,” “digital supply,” “performance,” “equipment rental”

Case Law & CRA Rulings

• Entertainment services = 100% taxable

• DJ performance = taxable

• Sound/lighting setup = taxable

• Travel fees = taxable

• Royal Bank v. Canada — strict ITC proof

• CRA: no exemption applies for art/music performances unless invoiced through a recognized public arts institution

Learning insight: DJ, audio, lighting and event entertainment services are always taxable — not exempt “artistic performances.”

Why CRA Audits DJs, Event Entertainers & Audio Technicians

Revenue Risks

• GST/HST not charged on event packages
• club gigs paid in cash without invoices
• wedding deposits not reported
• travel fees missing GST
• lighting/sound add-ons untaxed
• subcontract DJ assistants not invoicing properly
• weekend event spikes not reflected in filings
• Stripe/PayPal/e-transfer revenue mismatches
• multi-province events misrated

Subcontractor Risks

• second DJs / lighting technicians without valid GST numbers
• helpers paid cash
• missing subcontractor invoices
• T4A non-compliance
• misclassification of gig workers

ITC Risks

• missing invoices for:
– speakers & subwoofers
– DJ controllers, mixers, turntables
– microphones & wireless kits
– laptops & software (Serato, Rekordbox)
– lighting equipment (uplights, movers, lasers)
– vehicle/fuel expenses for travel
• imported gear missing s.218 self-assessment
• personal-use equipment claimed incorrectly
• storage/home studio expenses misallocated

Operational Risks

• event logs incomplete
• inconsistent booking calendars
• equipment rental income not invoiced
• multi-DJ company revenue not reconciled
• performance times not matching invoices
• weekend payments not deposited until later (GST timing errors)

High-risk operators:

• wedding DJs

• nightclub DJs

• corporate event entertainers

• mobile DJ setups

• DJ + MC hybrid packages

• lighting & sound tech crews

Learning insight: CRA believes DJs underreport revenue unless documentation proves otherwise.

CRA DJ & Entertainment Audit Process

1. CRA requests:
   – event contracts
   – invoices (DJ, lighting, sound, travel)
   – subcontractor invoices + GST numbers
   – booking calendar / gig schedule
   – bank & e-transfer statements
   – equipment purchase receipts
   – software subscriptions
   – ITC spreadsheets
   – imported gear receipts
   – Stripe/PayPal/booking platform payouts

2. CRA tests:
   • correct GST/HST on all taxable entertainment services
   • QC/ON/Atlantic rate accuracy
   • subcontractor GST compliance
   • ITC legitimacy + proof of payment
   • job logs → invoices → deposits → GST filing consistency
   • imported equipment → self-assessment
   • personal vs business use of gear

3. CRA issues Proposed Audit Adjustment.

4. Mackisen CPA prepares a detailed legal + documentary defense.

Learning insight: CRA reconstructs your event calendar from Instagram posts, booking platform records, deposits & subcontractor logs.

Mackisen CPA’s DJ & Entertainment Audit Defense Strategy

• create a DJ/Entertainment Tax Matrix (performance, lighting, sound, travel, equipment rental)
• rebuild GST/HST invoices
• validate subcontractor GST numbers
• reconstruct ITC binder (audio gear, lighting equipment, software, vehicle expenses)
• correct GST/HST rate based on event location
• reconcile gig calendar → invoices → deposits → GST returns
• defend imported-gear ITCs through self-assessment reconstruction
• prepare CRA-certified audit binder
• negotiate penalty & interest relief

Learning insight: These audits are won through clear gig-by-gig documentation and validated equipment ITCs.

Common CRA Findings in DJ & Entertainment Audits

• GST/HST not charged on DJ packages
• travel fees & lighting add-ons untaxed
• subcontractors unregistered / invalid invoices
• ITCs denied for missing receipts
• imported DJ/lighting gear without GST self-assessment
• bank deposits exceed reported revenue
• personal-use gear included in business ITCs
• multi-province events misrated

Learning insight: CRA’s largest reassessments come from invoice defects + missing ITCs + underreported gigs.

Real-World Results

• A wedding DJ avoided a $176,000 reassessment after MackisenCPA rebuilt gig logs & subcontractor documentation.
• A corporate event DJ reversed a $122,000 ITC denial via complete audio/lighting gear documentation.
• A mobile DJ team eliminated penalties by correcting GST/HST on travel & lighting add-ons.
• A nightclub DJ cleared CRA findings with full deposit→invoice→GST reconciliation.

Learning insight: CRA backs down when the DJ’s business is CPA-organized and gig-by-gig verified.

SEO Optimization & Educational Value

Primary keywords: GST/HST DJ audit, CRA entertainment audit, DJ GST rules Canada, Mackisen CPA Montreal
Secondary keywords: audio equipment ITC, subcontract DJ audit, lighting GST/HST, entertainment service tax Canada

Learning insight: DJ audits are highly searched due to confusion around entertainment taxes and subcontractor rules.

Why Mackisen CPA Montreal

With 35+ years defending DJs, entertainers, lighting crews, and audio technicians, Mackisen CPA Montreal is Québec’s top authority in GST/HST entertainment-sector audits.
We understand gig workflows, subcontractors, audio/visual gear expenses, and CRA methodology deeply.

Learning insight: Entertainment audits require documentation precision, subcontractor compliance, and ITC accuracy — all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your DJ business, audio production service, event entertainment, or lighting/sound setup, contact Mackisen CPA Montreal immediately:

📞 514-276-0808
📧 info@mackisen.com
🌐 mackisen.com

Learning Conclusion:

A CRA GST/HST DJ & Entertainment Audit tests taxable performance fees, subcontractor compliance, equipment ITCs, multi-province GST rules & revenue completeness.
Mackisen CPA Montreal ensures your entertainment business is fully protected from reassessments.