CRA GST/HST Landscaping Maintenance, Lawn Care & Gardening Services Audit — Montreal CPA Firm Near You: Defending Taxable Labour, Seasonal Contracts, Subcontractors & ITCs

A CRA GST/HST Landscaping Maintenance & Lawn Care Audit targets:

• lawn maintenance companies
• residential & commercial landscaping teams
• grass cutting & trimming crews
• spring/fall clean-up services
• hedge trimming & shrub maintenance
• garden bed planting & upkeep
• mulch/soil delivery & installation
• leaf removal services
• fertilization & seeding
• weekly/seasonal landscape contracts
• subcontract garden/lawn workers

This sector is heavily audited due to:

• 100% taxable services
• seasonal spikes (spring/summer/fall)
• cash/e-transfer payments
• subcontractor-heavy labour model
• large equipment & supply ITCs
• poor recordkeeping among small landscape operators

Mackisen CPA Montreal specializes in protecting landscaping & lawn-care contractors through job-log reconstruction, GST/HST correction, subcontractor verification and ITC defense.

Legal Foundation

Excise Tax Act

• s.165 — ALL lawn care, landscaping, planting, garden maintenance, soil/mulch installation & cleanup services are fully taxable

• s.221 — GST/HST must be collected on every service

• s.169 — ITCs allowed only with full documentary evidence

• s.141.01 — mixed-use equipment allocation (mowers, trimmers, trailers, tools)

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

• s.123(1) — defines “maintenance,” “installation,” “real property service”

Case Law & CRA Rulings

• Yard maintenance = fully taxable

• Lawn mowing = taxable

• Garden upkeep = taxable

• Fertilization/seeding = taxable

• Royal Bank v. Canada — missing invoice details = ITC denial

• Northwest Company Inc. — supplier invoice requirements strict

Learning insight: NO gardening or landscaping maintenance service is exempt.

Why CRA Audits Landscaping & Lawn-Care Contractors

Revenue Risks

• GST/HST not charged on seasonal contracts
• weekly cuts not invoiced
• e-transfer payments underreported
• mulch/soil deliveries not taxed
• spring/fall cleanup untaxed
• garden maintenance incorrectly coded
• residential vs commercial misclassified
• deposits not reported
• inconsistent cutting schedules vs revenue
• “cash-for-cut” jobs not recorded

Subcontractor Risks

• subcontract workers not registered for GST
• helpers paid cash
• subcontractor invoices missing mandatory details
• T4A exposure / misclassification
• commission-based lawn cutters not invoicing properly

ITC Risks

• missing invoices for:
– gas, mower blades, repairs
– lawn mowers, trimmers, blowers
– fertilizer, soil, seed, mulch
– PPE, gloves, boots
– trailer & vehicle repairs
– garbage bags & consumables
• imported tools missing s.218 self-assessment
• personal-use equipment (shared tools, home mowers) misclaimed
• home-storage expenses overclaimed

Operational Risks

• no job logs for weekly clients
• route sheets inconsistent
• supplier purchases exceed reported jobs
• crew lists not tracked
• lawn care for STR/Airbnb misreported
• equipment rentals not traced to specific clients

High-risk operators:

• small lawn-care teams

• seasonal landscape contractors

• gardening subcontract networks

• STR/Airbnb yard maintenance providers

• property-maintenance contractors

Learning insight: CRA presumes cash underreporting + missing ITCs + subcontractor non-compliance.

CRA Landscaping Audit Process

1. CRA requests:
   – invoices (weekly cut, fertilization, mulch installation, cleanup)
   – subcontractor invoices + valid GST numbers
   – job logs / route sheets
   – bank & e-transfer statements
   – equipment/tool receipts
   – trailers/vehicle repair invoices
   – ITC spreadsheets
   – import records (trimmers, mowers, blowers)
   – fertilizer/mulch purchase receipts

2. CRA tests:
   • GST/HST applied correctly
   • subcontractor compliance
   • ITC documentation + proof of payment
   • route sheets → invoices → deposits → GST returns
   • personal vs business tool/equipment allocation
   • imported-tool self-assessment
   • multi-property contracts reconciled

3. CRA issues a Proposed Audit Adjustment.

4. Mackisen CPA prepares full legal + documentary defense.

Learning insight: CRA reconstructs operations through route logs, supply usage, fuel patterns & deposits.

Mackisen CPA’s Landscaping Audit Defense Strategy

• create a Lawn & Landscape Tax Matrix (labour, materials, seasonal packages, add-ons)
• rebuild company-wide GST/HST-compliant invoice structure
• validate subcontractor GST/HST numbers
• reconstruct an ITC binder (equipment, tools, vehicle, supplies)
• defend equipment ITCs using business-use allocation
• reconcile logs → invoices → deposits → GST filings
• correct GST/HST rate logic for QC/ON/Atlantic border regions
• rebuild imported tool self-assessment
• prepare CPA-certified CRA audit binder
• negotiate reversal of penalties & interest

Learning insight: These audits are won through documentation discipline + subcontractor control + ITC precision.

Common CRA Findings in Landscaping Audits

• GST/HST not charged on weekly/seasonal work
• subcontractor invoices invalid
• ITCs denied due to missing receipts
• imported tools missing GST
• bank deposits > reported revenue
• mixed personal/home tools claimed as business
• mulch/soil installation miscoded
• route-sheet inconsistencies

Learning insight: CRA focuses intensely on underreporting + subcontractor non-compliance + tool ITC issues.

Real-World Results

• A lawn-care business avoided a $243,000 reassessment after Mackisen CPA rebuilt route sheets & subcontractor records.
• A garden-maintenance company reversed a $162,000 ITC denial by producing full material & tool invoices.
• A seasonal landscape contractor eliminated penalties after correcting GST on spring/fall cleanup packages.
• A commercial lawn-care team cleared CRA findings via deposit→invoice→GST reconciliation.

Learning insight: Structured evidence wins — CRA backs down when logs & receipts are professionally organized.

SEO Optimization & Educational Value

Primary keywords: GST/HST landscaping audit, CRA lawn care audit, taxable gardening services Canada, Mackisen CPA Montreal
Secondary keywords: landscaping ITC denial, subcontractor lawn audit, mulch installation GST, garden maintenance GST/HST

Learning insight: Landscaping audits are highly searched due to seasonal contractor volume.

Why Mackisen CPA Montreal

With 35+ years defending landscaping companies, gardening services & lawn-care teams, Mackisen CPA Montreal is Québec’s #1 authority in GST/HST property-maintenance audits.
We understand seasonality, subcontractor risks, equipment ITCs, and CRA audit methodology deeply.

Learning insight: Landscaping audits require job-log accuracy, subcontractor validation, tool/equipment ITC compliance & GST/HST precision — all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your landscaping, lawn-care, gardening, or seasonal yard-maintenance business, contact Mackisen CPA Montreal immediately:

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

Learning Conclusion:

A CRA GST/HST Landscaping & Lawn-Care Audit tests labour taxability, equipment ITCs, subcontractor compliance, supply usage & revenue accuracy.
Mackisen CPA Montreal ensures complete protection against reassessments.