CRA GST/HST Landscaping, Snow Removal & Outdoor Maintenance Audit — Montreal CPA Firm Near You: Defending Seasonal Contracts, Materials, Equipment & ITCs

A CRA GST/HST Landscaping, Snow Removal & Outdoor Maintenance Audit targets businesses providing lawn care, landscaping, excavation, interlock, fencing, deck building, snow removal, salting, plowing, tree services, and seasonal outdoor maintenance.

This industry is aggressively audited because it involves:
• fully taxable services (no exemptions)
• seasonal contracts with deposits
• subcontractor-heavy job structures
• fuel, equipment, truck & trailer ITCs
• materials (soil, stone, mulch, salt)
• large cash-based residential work
• multi-province mobile jobs
• maintenance vs construction vs repair classification
• repeated GST/HST invoicing errors

Mackisen CPA Montreal specializes in defending outdoor-service audits by reconstructing job documentation, verifying GST/HST compliance, mapping material flows, and preparing CRA-ready audit binders.

Legal Foundation

Excise Tax Act

• s.165 — GST/HST applies to all landscaping, maintenance & snow services

• s.221 — contractor must collect GST/HST on ALL labour

• s.169 — ITC eligibility rules

• s.141.01 — mixed-use allocation requirements

• Schedule IX — place-of-supply rules (QC/ON/Atlantic differences)

• s.123(1) — definitions of “service,” “maintenance,” “installation,” “repair”

Case Law

• CGI v. Canada — province where the service occurs determines the rate

• Royal Bank v. Canada — ITCs require complete documentation

• Northwest Company Inc. — defective invoices = ITC denial

• CRA interpretations: snow removal & landscaping are always taxable

Learning insight: No landscaping or snow removal service is exempt — all are taxable, regardless of property type.

Why CRA Audits Landscaping & Snow Removal Businesses

CRA flags these operations when it detects:

Revenue Risks

• GST/HST missing on seasonal contracts
• cash jobs underreported
• materials included but not taxed
• deposits/retainers missing GST/HST
• plowing/salting treated as exempt (incorrect)
• interprovincial job tax errors
• multi-phase jobs misclassified (maintenance vs improvement)

Subcontractor Risks

• subcontractors lacking valid GST/HST registration
• invoices missing required details
• T5018 statements inconsistent with GST returns
• worker misclassification (employee vs subcontractor)

ITC Risks

• missing invoices for:
– fuel
– truck & trailer repairs
– equipment purchases
– salt, soil, mulch, stone
– machinery leases
• personal-use expenses claimed as business
• missing proof-of-payment for ITCs
• equipment purchased privately without tax documentation

Operational Risks

• snow logs not matching billing
• landscaping materials not tied to specific jobs
• machinery depreciation vs ITC confusion
• mixed-use vehicles (family truck used for business)
• errors in progressive invoicing

High-risk businesses include:

• landscape contractors

• lawn care companies

• snow removal companies

• fencing/deck installers

• excavation & grading contractors

• tree removal & arborist services

• interlock & paving contractors

• seasonal maintenance teams

Learning insight: CRA assumes missing GST/HST + improper ITCs unless the business disproves it with perfect documentation.

CRA Landscaping/Snow Audit Process

1. CRA requests:
   – contract agreements (seasonal & per-visit)
   – invoices (labour, materials, equipment, travel)
   – subcontractor invoices
   – supplier invoices (Home Depot, Rona, stone yards, quarries)
   – fuel receipts
   – equipment rental contracts
   – truck/trailer invoices
   – salt/soil/stone purchase logs
   – bank & e-transfer statements
   – job logs (snow plowing, salting, service schedules)
   – ITC spreadsheets
   – T5018 summaries

2. CRA tests:
   • GST/HST charged correctly on ALL services
   • correct tax rate for QC/ON/Atlantic jobs
   • subcontractor GST registration validity
   • ITC support (invoice + proof of payment)
   • personal vs business equipment
   • cash/e-transfer deposits vs reported revenue
   • classification of material costs
   • seasonality of revenue vs contracts

3. CRA issues Proposed Audit Adjustment.

4. Mackisen CPA builds a complete documentary & legal defense.

Learning insight: CRA often uses sample testing, extrapolating one invoice error to the entire year.

Mackisen CPA’s Outdoor Services Audit Defense Strategy

• create a Job Taxability Matrix (labour, materials, equipment, subcontractors)
• rebuild and correct all invoices for GST/HST compliance
• verify subcontractor GST/HST registration
• reconstruct ITC binder for:
– equipment
– fuel
– repairs
– materials
– leases
• defend mixed-use vehicle claims with mileage logs
• model correct place-of-supply tax rates
• justify shrinkage and material waste with documentation
• reconcile deposits → invoices → GST filings
• prepare CRA-standard CPA-certified audit binder
• negotiate interest & penalty reductions

Learning insight: Outdoor service audits are won by providing job-level documentation and precise GST/HST mapping.

Common CRA Findings in Landscaping & Snow Audits

• GST/HST not collected on:
– seasonal contracts
– plowing
– salting
– lawn maintenance
– installation labour
• material costs not included in taxable supply
• subcontractor invoices invalid or unregistered
• fuel & truck expenses overstated
• ITCs denied for incomplete invoices
• cash jobs unreported
• wrong GST/HST rate for out-of-province jobs
• progressive invoicing errors
• personal tools claimed as business

Learning insight: CRA’s biggest adjustments come from invoice deficiencies + subcontractor problems + tax-rate mistakes.

Real-World Results

• A snow removal company avoided a $312,000 reassessment after Mackisen CPA rebuilt subcontractor and fuel ITC documentation.
• A landscaping firm reversed a $204,000 ITC denial by reconstructing supplier invoices and proper purchase proofs.
• A deck/fence contractor eliminated penalties after correcting place-of-supply errors for ON/Atlantic work.
• A tree removal company cleared CRA findings after reconciling job logs with GST filings.

Learning insight: CRA backs down when faced with well-organized, CPA-certified evidence.

SEO Optimization & Educational Value

Primary keywords: GST/HST landscaping audit, CRA snow removal audit, contractor GST rules, Mackisen CPA Montreal
Secondary keywords: ITC denial landscaping, subcontractor GST audit, outdoor maintenance GST, place-of-supply contractor Canada

Learning insight: Landscaping & snow removal GST issues rank highly and bring strong SEO traffic.

Why Mackisen CPA Montreal

With 35+ years defending landscaping, snow removal, and outdoor service companies, Mackisen CPA Montreal is Québec’s #1 authority in GST/HST audit defense for this sector.
We understand seasonal contracting, equipment ITCs, subcontractor structures, and CRA audit methodology.

Learning insight: Outdoor service audits require documentation discipline + subcontractor control + tax logic — all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your landscaping, snow removal, outdoor maintenance, or seasonal contracting business, contact Mackisen CPA Montreal immediately:

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

Learning Conclusion:

A CRA GST/HST Landscaping & Snow Removal Audit tests labour taxability, material classification, subcontractor compliance, ITC documentation, and seasonal contract logic.
Mackisen CPA Montreal ensures your business is fully protected from costly reassessments.