CRA GST/HST Input Tax Credit (ITC) Audit — Montreal CPA Firm Near You: Defend Every Credit with CPA-Certified Documentation

A CRA GST/HST Input Tax Credit (ITC) Audit is a detailed examination of the ITCs claimed on your GST/HST returns. CRA uses ITC audits to verify whether the tax you paid on business purchases is eligible, properly documented, and accurately reported.
Mackisen CPA Montreal defends businesses through these audits by preparing audit-ready ITC binders, validating every supplier invoice, reconciling ITCs to actual payments, and ensuring all documentation meets the strict requirements under the Excise Tax Act.

ITC audits are extremely documentation-sensitive. Even a valid business expense can be denied if the invoice is missing a single required field.

Legal Foundation

Excise Tax Act s.169 — sets the legal criteria for claiming ITCs (documentation, payment, eligibility).
Excise Tax Act s.165 — defines taxable supplies and the GST/HST payable.
Excise Tax Act s.286 — mandates detailed recordkeeping for GST/HST.
Case law: Northwest Company Inc. v. Canada — ITCs can be denied even when GST/HST was paid, if invoice documentation is incomplete.

Learning insight: ITC audits don’t test your honesty — they test your paperwork.

Why CRA Conducts ITC Audits

CRA flags returns for ITC audits when it detects:
• large ITC claims relative to revenue
• recurring refund periods
• invoices from high-risk suppliers or subcontractors
• missing or invalid GST/HST registration numbers
• cross-border or multi-province purchases
• discrepancies between GST/HST and income-tax filings
• unusual variances in ITC claims from prior periods
• industries with high ITC fraud risk (construction, trucking, e-commerce)

Learning insight: ITC audits happen because of patterns, not accusations.

CRA ITC Audit Process

1. CRA requests invoices, contracts, GL entries, and bank proof.

2. CRA verifies supplier registration numbers.

3. CRA checks that every required invoice field is present (name, address, date, BN, tax amount, consideration).

4. CRA tests that ITCs relate to commercial activity, not exempt or personal use.

5. CRA confirms that payments were actually made (no unpaid invoices).

6. CRA issues proposed adjustments — or clears the file.

Learning insight: CRA’s checklist is strict and formulaic. Your documents must match the checklist exactly.

Mackisen CPA’s ITC Audit Defense Strategy

• prepare a CPA-certified ITC binder organized by period, supplier, and payment proof
• verify every supplier’s GST/HST registration
• reconstruct missing invoices via supplier confirmation
• match invoices to bank statements, credit-card statements, and e-transfers
• remove or reclassify ineligible or mixed-use expenses
• prepare place-of-supply logic for interprovincial purchases
• correct filing errors and submit amended returns
• negotiate penalty and interest relief where CRA overreaches

Learning insight: CRA trusts what it can trace. We build audit files that are fully traceable.

Common CRA Findings in ITC Audits

• invoices missing GST numbers, dates, business names, or tax amounts
• ITCs claimed on personal or mixed-use expenses
• unpaid invoices claimed prematurely
• supplier not registered for GST/HST
• incorrect place-of-supply rate (5%, 13%, 15%)
• double-claimed ITCs across periods
• missing proof of payment
• ITCs claimed on exempt purchases (residential rent, financial services)

Learning insight: Almost every denied ITC is due to a technical documentation flaw.

Real-World Results

• A construction firm reversed $410,000 in denied ITCs after Mackisen CPA verified subcontractor BN numbers and rebuilt all missing invoices.
• A logistics company cleared a $180,000 ITC audit when we supplied proof of payment and reconstructed import documentation.
• An e-commerce retailer avoided $92,000 in reassessments after we fixed place-of-supply errors and cross-border GST mismatches.

Learning insight: When the documentation is stronger than the auditor’s assumptions, the taxpayer wins.

SEO Optimization and Educational Value

Primary keywords: GST/HST ITC audit, CRA input tax credit review, Mackisen CPA Montreal, GST audit defense, CRA sales tax audit
Secondary keywords: ITC documentation requirements, supplier GST verification, place of supply GST, denied ITC appeal, GST/HST refund audit

Learning insight: Structured, authoritative documentation improves both audit outcomes and search visibility.

Why Mackisen CPA Montreal

With over 35 years of GST/HST audit-defense experience, Mackisen CPA Montreal is one of Québec’s most trusted firms for ITC reviews. Our bilingual CPAs prepare documentation exactly in CRA’s audit format, eliminating delays and preventing unjustified reassessments.

Learning insight: ITC audits are won with evidence, not explanations. We deliver both.

Call to Action

If CRA is reviewing your ITCs or has denied credits, act immediately. Documentation delays can trigger penalties.
Contact Mackisen CPA Montreal for complete ITC audit defense and document reconstruction.
Phone: 514-276-0808 | Email: info@mackisen.com | Website: mackisen.com

Learning conclusion: A CRA ITC Audit tests every detail of your paperwork. Mackisen CPA Montreal ensures your ITCs are defended, validated, and released — without losing credits to technicalities.