CRA GST/HST Motor Vehicle Rebate Audit — Montreal CPA Firm Near You: Defending Rebate Eligibility, Business Use, and Documentation

A CRA GST/HST Motor Vehicle Rebate Audit examines whether your business correctly claimed a GST/HST rebate related to the purchase or lease of motor vehicles used in commercial activities.
This includes rebates for:
• public service bodies (PSBs)
• municipalities, charities, non-profits
• eligible businesses with mixed-use vehicles
• specially equipped vehicles
• vehicles used in commercial passenger or freight transportation

CRA aggressively reviews motor-vehicle rebate claims because they involve large dollar amounts, mixed personal/business use, and strict eligibility criteria that many taxpayers misunderstand.

Mackisen CPA Montreal specializes in defending these audits by proving business-use percentages, reconstructing documentation, and demonstrating rebate eligibility under the Excise Tax Act.

Legal Foundation

Excise Tax Act s.259 — governs GST/HST rebates for public service bodies and certain qualified entities.
Excise Tax Act s.169 — ITC rules for vehicles used in commercial activities.
Excise Tax Act s.141.01 — mixed-use allocation rules.
Income Tax Act Regulations — define passenger vehicle cost limits and capital cost allowance restrictions.
Case law: Royal Bank v. Canada — clear documentation required for eligibility.

Learning insight: CRA denies rebates when documentation, use, or eligibility cannot be demonstrated with precision.

Why CRA Audits Motor Vehicle Rebates

CRA flags rebate claims when it detects:
• unusually large rebate amounts
• inadequate vehicle-use documentation
• PSBs claiming rebates for non-qualifying vehicles
• business owners claiming rebates on vehicles with personal use
• commercially leased vehicles lacking proper GST documentation
• missing invoices or invalid GST/HST numbers
• vehicle used partly for non-commercial activity
• mismatches between rebate forms and actual vehicle use
• fleets where business-use documentation is incomplete

Learning insight: CRA presumes overclaiming unless business use is proven beyond doubt.

CRA Motor Vehicle Rebate Audit Process

1. CRA sends an audit letter requesting:
   – purchase/lease agreements
   – mileage logs
   – odometer readings
   – insurance documents
   – fuel, maintenance, and repair invoices
   – business-use logs (client visits, deliveries, fleet schedules)
   – proof of payment
   – PSB status proof (if applicable)

2. CRA recalculates commercial-use percentage.

3. CRA recalculates rebate based on allowable business use.

4. CRA tests eligibility for PSB rebates or special vehicle rules.

5. CRA issues a proposed adjustment.

6. Mackisen CPA prepares a detailed rebuttal with factual evidence.

Learning insight: CRA wants data, not estimates. Your defense must be airtight.

Mackisen CPA’s Motor Vehicle Rebate Defense Strategy

• reconstruct mileage logs using GPS data, emails, appointment history, and travel schedules
• verify commercial vs personal-use percentages with measurable evidence
• rebuild missing documentation for fuel, repairs, insurance, and lease payments
• validate GST/HST registration numbers for all vendors
• prepare CPA-certified allocation schedules tailored to CRA
• negotiate penalty reductions for honest errors
• support PSB status with corporate documents, bylaws, or registration
• prepare full audit binder linking every rebate dollar to a commercial-use activity

Learning insight: A powerful defense uses mathematics + documentation + narrative clarity.

Common CRA Findings in Motor Vehicle Rebate Audits

• rebates claimed for vehicles with significant personal use
• business-use percentage inflated or unsupported
• missing mileage logs → rebate denied
• passenger vehicles exceeding allowable limits
• vehicles used for exempt activities (e.g., residential rentals)
• ineligible PSB rebate claims
• incomplete invoices or GST/HST errors
• mixed-use vehicles incorrectly classified
• multiple vehicles claimed without separate business-use proof

Learning insight: CRA denies vehicle rebates primarily due to documentation gaps, not wrongdoing.

Real-World Results

• A consulting company avoided a $41,000 rebate clawback when Mackisen CPA rebuilt accurate business-use logs and corrected allocation errors.
• A non-profit organization kept a $24,000 PSB rebate after we supplied missing eligibility documents and reconstructed fleet schedules.
• A construction company reversed a $56,000 ITC denial by proving commercial use through dispatch logs and fuel receipts.
• A real estate corporation avoided penalties by demonstrating correct GST/HST treatment for mixed-use vehicles.

Learning insight: When documentation is reconstructed properly, CRA withdraws most proposed adjustments.

SEO Optimization and Educational Value

Primary keywords: GST/HST motor vehicle rebate audit, CRA vehicle rebate audit, Mackisen CPA Montreal, PSB rebate audit, GST/HST car audit
Secondary keywords: GST vehicle ITC audit, business-use vehicle audit CRA, vehicle rebate eligibility, CRA commercial vehicle audit

Learning insight: Strong, detailed content increases both client trust and SEO visibility for audit-related searches.

Why Mackisen CPA Montreal

With over 35 years of CRA audit-defense experience, Mackisen CPA Montreal is Québec’s leading authority on GST/HST vehicle rebates, ITC claims, and mixed-use vehicle audits. Our bilingual CPAs reconstruct evidence with unmatched precision to ensure your rebate is defended and retained.

Learning insight: Vehicle rebates are proof-based audits — we prepare the proof.

Call to Action

If CRA is auditing your GST/HST vehicle rebate or questioning your business-use percentage, get expert representation immediately.
Contact Mackisen CPA Montreal for full audit defense and documentation reconstruction.
Phone: 514-276-0808 | Email: info@mackisen.com | Website: mackisen.com

Learning conclusion: A CRA GST/HST Motor Vehicle Rebate Audit tests eligibility, use, and documentation. Mackisen CPA Montreal ensures your rebate is fully supported and defended — protecting your refund and reducing your audit risk.