CRA GST/HST Fence Repair, Gate Installation & Property Line Maintenance Audit — Montreal CPA Firm Near You: Defending Taxable Labour, Material Costs, Subcontractors & ITCs

A CRA GST/HST Fence Repair, Gate Installation & Property Line Maintenance Audit targets:

• wood fence repair contractors
• chain-link repair & replacement specialists
• aluminum & PVC fence installers
• gate installation & automation technicians
• fence post replacement crews
• storm-damage fence repair teams
• yard perimeter maintenance providers
• subcontract fence installers
• mixed fence + landscaping maintenance contractors

This is a high-risk audit category because fence repair and installation involve 100% taxable labour, high material purchases, subcontractor helpers, seasonal spikes, cash/e-transfer payments, and frequent multi-day projects. CRA typically audits when supplier purchases don’t match reported revenue.

Mackisen CPA Montreal specializes in defending fence-sector audits with job-by-job documentation, subcontractor validation, and ITC reconstruction.

Legal Foundation

Excise Tax Act

• s.165 — ALL fence repair, installation & property-line work is fully taxable

• s.221 — contractors must collect GST/HST

• s.169 — ITCs only allowed with valid receipts and proof of payment

• s.141.01 — allocation rules for tools, trucks & mixed-use assets

• Schedule IX — GST/HST rate depends on location of the property

• s.123(1) — defines “installation,” “repair,” “labour,” “tangible personal property”

CRA & Case Law

• Fence installation = taxable

• Gate installation = taxable

• Post-replacement = taxable

• Repairs = taxable

• CGI v. Canada — GST rate determined by location of property

• Royal Bank v. Canada — ITCs invalid if documents incomplete

• Northwest Company Inc. — supplier invoices must meet statutory requirements

Learning insight: No fence or gate project is exempt — all materials + labour + travel fees are fully taxable.

Why CRA Audits Fence Repair & Gate Installation Businesses

Revenue Risks

• GST/HST not charged on repair or installation labour
• cash/e-transfer payments underreported
• deposits for fence projects not reported
• gate automation & hardware fees missing GST
• storm-damage emergency repairs not invoiced
• multi-property residential projects misreported
• commercial fencing projects misclassified
• material reimbursements not taxed
• QC/ON/Atlantic rate errors for border towns

Subcontractor Risks

• installers/repair helpers lacking GST numbers
• cash payments to subcontractors
• invalid or missing subcontractor invoices
• T4A non-compliance
• misclassification between employee vs contractor

ITC Risks

• missing receipts for:
– lumber, boards, pickets, rails
– posts, concrete, cement mixes
– chain-link mesh, aluminum panels
– screws, brackets, fasteners
– gate hardware & hinges
– vehicle fuel & maintenance
– augers, saws, drills & rentals
• imported tools missing GST self-assessment (s.218)
• claiming ITCs for personal fencing tools
• overclaimed home-storage & home-office ITCs

Operational Risks

• job logs missing or incomplete
• poor documentation of material quantities
• quotes vs invoices inconsistent
• multi-day project labour not itemized
• no GPS/mileage records for travel fees
• weather-related repair surges not matching deposits

High-risk operators:

• fence repair crews

• gate installers

• yard maintenance contractors

• storm-repair teams

• subcontractor-heavy fence builders

Learning insight: CRA assumes underreported revenue, invalid ITCs & subcontractor problems unless the contractor proves otherwise.

CRA Fence Repair / Gate Installation Audit Process

1. CRA requests:
   – contracts & quotes
   – invoices (labour, materials, travel, disposal)
   – subcontractor invoices + GST numbers
   – supplier invoices (Home Depot, Rona, lumber yards, metal suppliers)
   – job logs / project calendars
   – bank & e-transfer statements
   – T5018 summaries
   – ITC spreadsheets
   – equipment rental receipts
   – import records

2. CRA tests:
   • GST/HST applied correctly to all labour & materials
   • place-of-supply GST/HST rate
   • subcontractor GST registration & invoice validity
   • ITC evidence + proof of payment
   • logs → invoices → deposits → GST return consistency
   • personal vs business equipment use
   • “material waste” justification
   • commercial vs residential rate consistency

3. CRA issues a Proposed Audit Adjustment.

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

Learning insight: CRA rebuilds the business using supplier purchases, project logs & banking activity.

Mackisen CPA’s Fence Repair Audit Defense Strategy

• create a Fence & Gate Tax Matrix (repair, install, materials, travel, disposal)
• rebuild GST/HST-compliant invoice templates
• validate subcontractor GST/HST registrations
• reconstruct ITC binder (materials, tools, vehicle, equipment rentals)
• reconcile contracts → deposits → invoices → GST filings
• defend material-use variances (cut wastage, post replacement ratios)
• correct QC/ON/Atlantic GST/HST rate logic
• rebuild imported-tool self-assessment entries
• prepare a CPA-certified CRA audit binder
• negotiate removal of penalties & interest

Learning insight: These audits are won with project-level documentation, subcontractor compliance & ITC discipline.

Common CRA Findings in Fence/Gate Audits

• GST/HST not charged on:
– labour
– materials
– gate automation
– post-replacement
– disposal fees
• subcontractor invoices invalid
• ITCs denied due to missing receipts
• imported tools not self-assessed
• bank deposits > reported revenue
• supply purchases too high vs reported jobs
• inconsistent job logs
• deposits omitted from GST periods

Learning insight: The biggest reassessments come from invoice defects, missing ITCs & underreported deposits.

Real-World Results

• A fence-repair contractor avoided a $239,000 reassessment after Mackisen CPA rebuilt project logs & subcontractor documentation.
• A gate-installation business reversed a $168,000 ITC denial by producing materials & tool receipts.
• A suburban fence-replacement firm eliminated penalties by correcting GST/HST on multi-day repair packages.
• A storm-repair contractor cleared CRA findings via deposit → invoice → GST reconciliation.

Learning insight: CRA backs down when presented with CPA-organized job-by-job evidence.

SEO Optimization & Educational Value

Primary keywords: GST/HST fence repair audit, CRA gate installation audit, fencing GST rules Canada, Mackisen CPA Montreal
Secondary keywords: yard maintenance GST audit, subcontractor fence audit, ITC denial fencing, property-line maintenance GST

Learning insight: Fence-repair audits have strong SEO demand due to large seasonal contractor activity.

Why Mackisen CPA Montreal

With 35+ years defending fence installers, gate technicians & repair crews, Mackisen CPA Montreal is Québec’s #1 authority in GST/HST construction-trade audits.
We understand project costing, subcontract networks, material flows & CRA methodology deeply.

Learning insight: Fence-sector audits require documentation accuracy, subcontractor control & ITC rigor — all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your fence repair, gate installation, yard-line maintenance, or property-perimeter service, contact Mackisen CPA Montreal immediately:

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

Learning Conclusion:

A CRA GST/HST Fence & Gate Audit tests labour taxability, material documentation, subcontractor compliance, ITC legitimacy & revenue reconciliation.
Mackisen CPA Montreal ensures full protection from reassessments.